NEW YORK--(BUSINESS WIRE)--Take-Two Interactive Software, Inc. (NASDAQ:TTWO) today reported strong revenues and better-than-expected Non-GAAP earnings for its fourth quarter and fiscal year 2015, ended March 31, 2015, and provided its initial financial outlook for its first quarter and fiscal year 2016. In addition, the Company announced that its Board of Directors has approved an increase to its share repurchase authorization up to an aggregate of 10 million shares of Take-Two’s common stock.
Fiscal Fourth Quarter 2015
GAAP Financial Results
For fiscal fourth quarter 2015, GAAP net revenue grew 54% to $300.1 million, as compared to $195.2 million for fiscal fourth quarter 2014. GAAP net loss was $242.8 million, or $2.99 per diluted share, as compared to $30.8 million, or $0.40 per diluted share, for the year-ago period. GAAP results for fiscal fourth quarter 2015 reflect the deferral of net revenue and cost of goods sold related to sell-in of certain titles during the quarter.
During fiscal fourth quarter 2015, the Company’s cash and short-term investments balance increased to $1.098 billion as of March 31, 2015, up from $976.6 million as of December 31, 2014.
Non-GAAP Financial Results
For fiscal fourth quarter 2015, Non-GAAP net revenue grew 83% to $427.7 million, as compared to $233.2 million for fiscal fourth quarter 2014. Non-GAAP net income increased to $54.3 million, or $0.49 per diluted share, as compared to $21.5 million, or $0.21 per diluted share, for the year-ago period.
The largest contributors to Non-GAAP net revenue in fiscal fourth quarter 2015 were Grand Theft Auto V® and Grand Theft Auto Online, Evolve™, NBA® 2K15 and Borderlands®: The Handsome Collection™,. Non-GAAP net revenue from digitally-delivered content grew 66% year-over-year to $202.5 million, led by offerings from the Grand Theft Auto, NBA 2K, Evolve, Borderlands and WWE® 2K series. Revenue from recurrent consumer spending (virtual currency, downloadable add-on content and online games) grew 47% year-over-year and accounted for 54% of Non-GAAP net revenue from digitally-delivered content. Catalog sales accounted for $78.3 million of Non-GAAP net revenue led by the Grand Theft Auto and Borderlands series.
Fiscal Year 2015
GAAP Financial Results
For fiscal year 2015, GAAP net revenue was $1.083 billion, as compared to $2.351 billion for fiscal year 2014, which had benefited from the record-breaking launch of Grand Theft Auto V for PlayStation 3 and Xbox 360. GAAP net loss was $279.5 million, or $3.48 per diluted share, as compared to GAAP net income of $361.6 million, or $3.20 per diluted share, for the prior fiscal year. GAAP results for fiscal year 2015 reflect the deferral of net revenue and cost of goods sold related to sell-in of certain titles during the fiscal third and fourth quarters.
Non-GAAP Financial Results
For fiscal year 2015, Non-GAAP net revenue was $1.669 billion, as compared to $2.414 billion for fiscal year 2014. Non-GAAP net income was $219.2 million, or $1.98 per diluted share, as compared to $510.7 million, or $4.26 per diluted share, for the prior fiscal year.
The largest contributors to Non-GAAP net revenue in fiscal year 2015 were Grand Theft Auto V and Grand Theft Auto Online, NBA 2K15, WWE 2K15, Evolve and Borderlands: The Pre-Sequel. Non-GAAP net revenue from digitally-delivered content grew 42% year-over-year to a record $616.0 million, led by offerings from the Grand Theft Auto, NBA 2K, Borderlands, Sid Meier’s Civilization and Evolve series. Revenue from recurrent consumer spending grew 45% year-over-year and accounted for 49% of Non-GAAP net revenue from digitally-delivered content.
Management Comments
“Our strong fourth quarter revenues and better-than-expected Non-GAAP profits marked an outstanding close to one of our Company’s best years ever,” said Strauss Zelnick, Chairman and CEO of Take-Two. “During fiscal 2015, we seamlessly launched five triple-A titles for the holiday season led by Grand Theft Auto V and NBA 2K15; added an exciting new franchise with the successful release of Evolve; and achieved record digitally-delivered revenue, including our highest-ever revenues from recurrent consumer spending. Our business generated significant cash flow and, as a result, we ended the fiscal year with $1.1 billion in cash and short-term investments.
“Fiscal 2016 is off to a great start, highlighted by the April launch of Grand Theft Auto V for the PC, which has exceeded our expectations. Throughout the coming year, we will continue to execute our proven strategy of launching a select array of the highest-quality titles, led by new annual releases of NBA 2K and WWE 2K; Battleborn, a groundbreaking new intellectual property from Gearbox Software; and a soon-to-be announced new triple-A title from 2K. We also will continue to deliver innovative offerings designed to promote ongoing engagement with our games and drive recurrent consumer spending. Beyond fiscal 2016, we have a robust development pipeline and our Company is well-positioned to deliver growth and margin expansion over the long-term.”
Business and Product Highlights
Since January 1, 2015:
Rockstar Games:
Launched Grand Theft Auto V and Grand Theft Auto Online on the PC. Grand Theft Auto V has now sold-in nearly 52 million units across PlayStation 4, PlayStation 3, Xbox One, Xbox 360 and PC.
Released Grand Theft Auto Online Heists – a four-player co-op mode for Grand Theft Auto Online that enables players to plan, prepare and execute multi-tiered Heists across Los Santos and Blaine County – as a free update on PlayStation 4, PlayStation 3, Xbox One, Xbox 360 and PC.
2K:
Launched Evolve on Xbox One, PlayStation 4 and PC. Developed by Turtle Rock Studios, Evolve is being supported with a robust array of downloadable add-on content, including a Hunting Season Pass, as well as a companion App – Evolve: Hunters Quest. The game received positive reviews from influential critics, including IGN which scored it 9 out of 10 and Game Informer which scored it 8.5 out of 10, and has sold-in approximately 2.5 million units to date.
Released Borderlands: The Handsome Collection on PlayStation 4 and Xbox One. The Handsome Collection includes Borderlands 2 and Borderlands: The Pre-Sequel along with all of the downloadable content for both titles.
Launched Sid Meier’s Starships™ on PC, Mac and iPad. This turn-based, tactical space combat game features cross-connectivity and unlockable bonuses with Sid Meier’s Civilization: Beyond Earth.
Brought WWE simulation video gaming to the PC and mobile platforms for the first time ever with the release of WWE 2K15 for PC and WWE 2K for iOS and Android.
Announced that Sid Meier’s Civilization: Beyond Earth – Rising Tide, an expansion pack for the popular PC title from Firaxis Games, is planned for release in fall 2015.
http://ir.take2games.com/phoenix.zhtml?c=86428&p=irol-newsArticle&ID=2049380
NBA 2k15 just under 7m
WWE 2k15 sold in nearly 3m, 40% up from 2K14 in the same time.
Borderlands sales exceeded expectations, 20% digital. 25m units franchise sales of which 8m sold in FY2015.
