Take-Two Interactive Reports Slight Revenue Decline and Increased Net Loss for Quarter Ended December 31, 2024

Take-Two Interactive Software, Inc. reported its financial results for the three and nine months ended December 31, 2024, revealing a slight decline in net revenue compared to the previous year. The company generated total net revenue of $1,359.8 million for the quarter, a decrease of 0.5% from $1,366.3 million in the same period last year. For the nine-month period, net revenue increased by 2.6% to $4,051.1 million, up from $3,950.2 million. The company experienced a net loss of $125.2 million for the quarter, compared to a loss of $91.6 million in the prior year, while the nine-month net loss improved to $752.7 million from $841.2 million.

The financial performance was influenced by several factors, including a decrease in revenue from key franchises such as Grand Theft Auto and Red Dead Redemption, which were partially offset by gains from newer titles like Match Factory! and Toon Blast. Mobile revenue accounted for 53.8% of total net revenue in the latest quarter, reflecting a growth trend in this segment. The company also reported a gross profit of $759.9 million for the quarter, representing a gross margin of 55.9%, an increase from 49.7% in the prior year, attributed to lower amortization of intangible assets and reduced internal royalties.

In terms of strategic developments, Take-Two completed the acquisition of Gearbox Entertainment Company in June 2024, which is expected to enhance its portfolio and drive long-term growth. The acquisition was valued at approximately $435 million and included various intangible assets. Additionally, the company divested its Private Division label in October 2024, focusing on its core franchises and streamlining operations. The company has also implemented a cost reduction program, which has led to a reorganization of its business structure and the cancellation of several projects.

Operationally, Take-Two's total assets increased to $12.68 billion as of December 31, 2024, up from $12.22 billion at the end of the previous fiscal year. The company reported a total of 176.5 million shares of common stock outstanding. The company’s cash and cash equivalents rose to $1.31 billion, bolstered by financing activities, including proceeds from the issuance of senior notes. The company continues to focus on expanding its international presence, particularly in Asia, and enhancing its digital distribution channels, which accounted for 96.4% of net revenue for the nine months ended December 31, 2024.

Looking ahead, Take-Two anticipates continued growth driven by its strong portfolio of franchises and upcoming product releases, including the highly anticipated Grand Theft Auto VI, set to launch in the fall of 2025. The company remains committed to leveraging its creative talent and innovative marketing strategies to navigate the evolving interactive entertainment landscape while managing operational efficiencies and cost structures.