NEW YORK--(BUSINESS WIRE)--May 13, 2014-- Take-Two Interactive Software, Inc. (NASDAQ:TTWO) today reported strong financial results for its fourth quarter and record results for its fiscal year 2014, ended March 31, 2014. In addition, the Company provided its initial financial outlook for its first quarter and fiscal year 2015.
Fiscal Fourth Quarter 2014
GAAP Financial Results
For fiscal fourth quarter 2014, GAAP net revenue was $195.2 million, as compared to $299.5 million for fiscal fourth quarter 2013, which had benefited from the release of BioShock® Infinite. GAAP net loss from continuing operations was $30.8 million, or $0.40 per diluted share, as compared to net income from continuing operations of $21.2 million, or $0.23 per diluted share, for the year-ago period. As of March 31, 2014, the Company had cash and cash equivalents of $935.4 million.
Non-GAAP Financial Results
For fiscal fourth quarter 2014, Non-GAAP net revenue was $233.2 million, as compared to $303.1 million for fiscal fourth quarter 2013. Non-GAAP net income was $21.5 million, or $0.21 per diluted share, as compared to $42.9 million, or $0.38 per diluted share, for the year-ago period.
The largest contributors to net revenue in fiscal fourth quarter 2014 were NBA® 2K14, Grand Theft Auto V®, Grand Theft Auto Online, Borderlands® 2 and BioShock Infinite. Non-GAAP net revenue from digitally-delivered content grew 51% year-over-year to $122.3 million, led by the Grand Theft Auto series, the NBA 2K franchise and offerings for Borderlands 2. Catalog sales accounted for $75.7 million of Non-GAAP net revenue led by offerings for Borderlands 2, BioShock Infinite, the Grand Theft Auto series and Sid Meier’s Civilization® V.
Fiscal Year 2014
GAAP Financial Results
For fiscal year 2014, GAAP net revenue grew 94% to a record $2.351 billion, as compared to $1.214 billion for fiscal year 2013. GAAP net income from continuing operations increased to a record $361.7 million, or $3.20 per diluted share, as compared to a net loss from continuing operations of $31.2 million, or $0.36 per diluted share, for the prior fiscal year.
Non-GAAP Financial Results
For fiscal year 2014, Non-GAAP net revenue grew 97% to a record $2.414 billion, as compared to $1.222 billion for fiscal year 2013. Non-GAAP net income increased to a record $510.7 million, or $4.26 per diluted share, as compared to $33.1 million, or $0.36 per diluted share, for the prior fiscal year.
The largest contributors to net revenue in fiscal year 2014 were Grand Theft Auto V, NBA 2K14, Borderlands 2, WWE® 2K14, Grand Theft Auto IV, Grand Theft Auto Online, BioShock Infinite and offerings for Sid Meier’s Civilization V. Non-GAAP net revenue from digitally-delivered content grew 65% year-over-year to a record $435.1 million, led by offerings for the Grand Theft Auto series, Borderlands 2, the NBA 2K franchise, Sid Meier’s Civilization V and BioShock Infinite.
Management Comments
“During fiscal 2014, Take-Two set new records for both our Company and the entertainment industry,” said Strauss Zelnick, Chairman and CEO of Take-Two. “Rockstar Games’ Grand Theft Auto V reached $1 billion in sales faster than any entertainment release in history, NBA 2K14 enjoyed the franchise’s strongest launch, Borderlands 2 became 2K’s top-selling title, and our digitally-delivered revenue grew to its highest level ever. As a result, we delivered record revenue, earnings and cash flow for our shareholders.
“Over the past several years, Take-Two has been transformed into a financially strong, global interactive entertainment company with numerous successful franchises across a variety of genres. We also have complemented the Company’s core business with growing profits from recurrent consumer spending, including add-on content, virtual currency and online gaming. The evolution of Take-Two is reflected in our strong profit outlook for fiscal 2015 and expectation for continued Non-GAAP profitability every year for the foreseeable future.”
Business and Product Highlights
Since January 1, 2014:
Take-Two was the top console and handheld video game publisher of 2013 in North America and Latin America.*
Rockstar Games:
Grand Theft Auto V was the best-selling console video game of 2013 in North America, Latin America and Europe combined.** To date, Grand Theft Auto V has sold-in more than 33 million units.
Released several updates for Grand Theft Auto Online, including The Business Update, which provided a suite of new vehicles, weapons and character customizations; The High Life Update, featuring high-end properties, more new vehicles and an array of new Jobs; and The Valentine’s Day Massacre Special, which offered limited-edition 1920’s gangster-themed content.
Released Grand Theft Auto: San Andreas for select Android, Kindle and Windows Phone devices.
2K:
Released XCOM®: Enemy Unknown – The Complete Edition for PC and Mac, which includes the original 2012 Game of the Year award-winning title plus the critically acclaimed expansion, XCOM: Enemy Within, along with all of the released add-on content in one package.
Released Sid Meier’s Civilization V: The Complete Edition for PC, which includes the original 2010 Game of the Year award-winning strategy title plus the two critically-acclaimed expansion packs, Gods & Kings and Brave New World, and all of the released add-on content in one package.
Announced that Oklahoma City Thunder superstar, four-time NBA scoring champion, and recently crowned 2014 NBA Most Valuable Player, Kevin Durant, will make his solo cover debut on NBA 2K15, the next installment of the top-selling and top-rated NBA video game simulation franchise.*** NBA 2K15 is planned for launch on October 7, 2014 in North America and October 10, 2014 internationally on the PS3, PS4, Xbox 360, Xbox One and PC.
Announced that Sid Meier’s Civilization: Beyond Earth™, a new science fiction-themed entry in the award-winning Civilization franchise, is currently in development by Firaxis Games and is planned for release this fall for PC, Mac and Linux.
Announced that Borderlands: The Pre-Sequel™, an all-new standalone Borderlands game set in between the award-winning Borderlands and Borderlands 2, is currently in co-development by Gearbox Software and 2K Australia and is planned for launch this fall on the Xbox 360, PS3 and PC.
Announced that Evolve™ is planned for launch on the Xbox One, PS4 and PC in fall 2014. Developed by Turtle Rock Studios, the renowned creators of Left 4 Dead, Evolve is an all-new shooter that blends cooperative and competitive multiplayer experiences.
* Based on dollar-value of retail sales, according to data from The NPD Group’s Retail Tracking Service and International Development Group.
** According to data from The NPD Group’s Retail Tracking Service, International Development Group, and GfK Chart-Track.
*** According to 2008 - 2014 Metacritic.com and The NPD Group estimates of U.S. retail video game sales through March 2014.
Financial outlook:
Lineup:
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The conference call just started. Listen here.