Take-Two Interactive Software, Inc. reported its financial results for the three and six months ended September 30, 2024, showing notable changes in revenue, profitability, and strategic developments compared to the previous fiscal period.
For the three months ended September 30, 2024, net revenue increased to $1,353.1 million, up 4.1% from $1,299.2 million in the same period of 2023. The six-month revenue also rose to $2,691.3 million, a 4.2% increase from $2,583.9 million year-over-year. The growth was primarily driven by mobile game revenues, which accounted for 54.7% of total net revenue, reflecting a significant increase from 49.7% in the prior year. However, console game revenues decreased, contributing 36.3% of total revenue, down from 42.1% in the previous year.
Gross profit for the three months ended September 30, 2024, surged to $727.9 million, representing 53.8% of total net revenue, compared to $415.4 million (32.0%) in the prior year. For the six months, gross profit reached $1,499.0 million, a 36.9% increase from $1,094.6 million. Despite the increase in gross profit, total operating expenses rose to $1,025.1 million for the quarter, up from $959.1 million, primarily due to higher selling and marketing expenses related to new game launches.
The company reported a net loss of $(365.5) million for the three months ended September 30, 2024, an improvement from a net loss of $(543.6) million in the same period of 2023. For the six months, the net loss was $(627.5) million, compared to $(749.6) million in the prior year. Basic and diluted loss per share improved to $(2.08) from $(3.20) year-over-year.
Strategically, Take-Two completed the acquisition of The Gearbox Entertainment Company on June 11, 2024, for an initial consideration valued at $435.0 million, aimed at enhancing its portfolio and creative talent. Additionally, the company sold its Private Division label in October 2024, which included rights to several titles.
As of September 30, 2024, Take-Two's cash and cash equivalents totaled $876.1 million, up from $754.0 million at the end of the previous fiscal year. The company also reported total assets of $13,075.3 million, an increase from $12,216.9 million, while total liabilities rose to $3,200.5 million from $2,406.4 million.
Overall, Take-Two's financial performance reflects a positive trend in revenue growth and a reduction in net losses, alongside significant strategic acquisitions aimed at bolstering its market position.