This afternoon, Take-Two Interactive Software announced their financial results for the second quarter of their fiscal year 2021, which ran from July 1, 2020 until Sept. 30, 2020.
Their GAAP net revenue was even greater than last quarter by nearly $10 million. However, compared to Q2 fiscal year 2020, this number dropped by $16.7 million.
- GAAP net revenue was $841.1 million, an increase of nearly $10 million over last quarter
- GAAP net income per diluted share increased 37% to $0.86
- GAAP net cash provided by operating activities for the six-months ended September 30, 2020 increased 335% to $626.7 million
- Adjusted Unrestricted Operating Cash Flow (Non-GAAP) for the six-months ended September 30, 2020 increased 1135% to $509.4 million
- Net Bookings grew to $957.5 million
- Company raises outlook for fiscal year 2021, including record Net Bookings
It’s also important to note that 59% of their total GAAP net revenue from Q2 came from recurrent customer spending. This includes virtual currency, add-ons, and other in-game purchases. This section of their revenue also saw a 56% increase in Q2.
We also got details on which of their franchises contributed most to their revenue during Q2 as well as some details on how much of their revenue came from digital sales.
The largest contributors to GAAP net revenue in fiscal second quarter 2021 were NBA® 2K20 and NBA 2K21; Grand Theft Auto® Online and Grand Theft Auto V; Red Dead Redemption 2 and Red Dead Online; Borderlands® 3; PGA TOUR® 2K21; Social Point’s mobile offerings; the Mafia: Definitive Editions and Mafia: Trilogy; Sid Meier’s Civilization VI; and the WWE® series.
Digitally-delivered GAAP net revenue increased 16% to $711.3 million, as compared to $615.8 million in last year’s fiscal second quarter, and accounted for 85% of total GAAP net revenue. The largest contributors to GAAP digitally-delivered net revenue in fiscal second quarter 2021 were NBA 2K20 and NBA 2K21; Grand Theft Auto Online and Grand Theft Auto V; Red Dead Redemption 2 and Red Dead Online; Borderlands 3; Social Point’s mobile offerings; PGA TOUR 2K21; the Mafia Definitive Editions and Mafia: Trilogy; the WWE series; and Sid Meier’s Civilization VI.
Below you can find the net bookings for Take-Two in Q2. As you can see, digital purchasing and recurrent consumers are continuing to increase.
During fiscal second quarter 2021, total Net Bookings grew to $957.5 million, as compared to $950.5 million during last year’s fiscal second quarter. Net Bookings from recurrent consumer spending grew 43% and accounted for 64% of total Net Bookings.
Digitally-delivered Net Bookings grew 14% to $791.7 million, as compared to $695.3 million in last year’s fiscal second quarter, and accounted for 83% of total Net Bookings.
Despite all the changes to the world with COVID-19, Take-Two CEO, Strauss Zelnick announced that they have, “…better-than-expected second quarter operating results and increased forecast for the balance of the year…”
When it comes to increasing projections, Zelnick stated, “…we are raising our fiscal 2021 outlook, and we now expect record Net Bookings of over $3 billion.”
Next, they went into the details of some of their larger studios like Rockstar, 2K, and Private Division. All the details for each studio and Take-Two as a whole can be found below.
Take-Two:
- Acquired privately-held Playdots, Inc. for final consideration of $196 million, comprised of $98 million in cash and the balance in newly issued shares of Take-Two common stock. Founded in 2013 and based in New York City, Playdots builds mobile games with unique and thoughtful designs. They are best known for Two Dots, which has been downloaded over 80 million times since its launch six years ago and that continues to deeply engage audiences throughout the world. Playdots is led by Nir Efrat, who came to Playdots in March 2018 and serves as its Chief Executive Officer. Prior to Playdots, Efrat was Head of Franchises and Studios at King, the creator of the widely successful Candy Crush mobile game series. He will continue to lead Playdots and its approximately 70 employees. Playdots has a robust development pipeline with a number of innovative puzzle games planned for launch over the coming years.
Rockstar Games:
- Acquired Ruffian Games. Based in Dundee, Scotland, the studio will operate under the new name of Rockstar Dundee. Terms of the acquisition were not disclosed. Founded in 2008 by Gary Liddon and Billy Thomson, Ruffian partnered with Microsoft to work on the Crackdown series, and with 343 Industries on Halo: Reach from the Halo Master Chief Collection, among many other projects. Ruffian’s talented team of just over 40 have a depth of development experience that even includes work on some early Rockstar titles from the Grand Theft Auto and Manhunt series. Both Liddon and Thomson will remain on-board as Co-Studio Directors of Rockstar Dundee.
- Released new free content updates for Red Dead Online including:
- The Naturalist, a massive new update to Red Dead Online featuring the latest specialist Role: The Naturalist, giving players the opportunity to track, study and sample animals for Naturalist Harriet Davenport, or hunt them for the trapper Gus MacMillan. The update also featured Legendary Animals, Legendary Animal Sighting Missions, Poaching Missions, new Free Roam Events, two new weapons, a new variant of the Varmint Rifle, the Advanced Camera, new clothing, and an assortment of unique items and rewards in the latest edition of Outlaw Pass: The Outlaw Pass No. 3.
- Released new free content updates for Grand Theft Auto Online,including The Los Santos Summer Special Update, which introduced six Superyacht Life Co-Op Missions, 15 new Vehicles, nine Open Wheel Race Tracks and the new Open Wheel Race Creator, new Business Battles, the Diamond Adversary Series, two new Arcade Cabinets, new collectibles, clothing and Ambient Events, plus multiple gameplay improvements.
- Both Grand Theft Auto Online and Red Dead Online will receive major updates later this fiscal year, featuring an extension to existing Frontier Pursuits for Red Dead Online, as well as Grand Theft Auto Online’s biggest update ever, featuring a new take on Heists in a new location.
2K: