Take-Two Interactive Software (TTWO) - Get Take-Two Interactive Software, Inc. Report has beat earnings expectations backed by sales of "Grand Theft Auto V" more than two-and-a-half years after the title's initial release.
The New York-based video game developer brought in $342.5 million in its fiscal fourth quarter. While that was a year-over-year decrease from $427.7 million, Take-Two beat analyst expectations, which Thomson Reuters reported to be $306 million. Earnings per share stood at 46 cents against an expected 26 cents.
Take-Two owns Rockstar Games, the publisher of the both popular and controversial Grand Theft Auto video game series, and 2K, the company behind the NBA 2K and WWE2K series.
"Our results were driven by the continued extraordinary performance of Grand Theft Auto V," Take-Two Chairman and CEO Strauss Zelnick said, "ongoing momentum in our NBA 2K and WWE 2K series, the successful launch of XCOM 2, and our highest-ever revenue from recurrent consumer spending."
Grand Theft Auto V reportedly has shipped more than 65 million copies since its September 2013 release.
When asked for an update on its cash and mergers and acquisition strategy by a Macquarie analyst on the earnings conference call, the company explained it planned to use the money to pursue organic growth through strategies like expanding its product line and releasing games for new platforms. The company also said it could use it for M&A deals or return cash to shareholders.
Take-Two CFO Lainie Goldstein also said the company projects its $250 million in 1.75% convertible notes that mature Dec. 1 will be settled in stock rather than in cash.
For its business strategy, the company said it is taking a "highly disciplined" approach in emerging markets along with new gaming platforms like tablets. Take-Two later noted the demand for games is much different in Asia, including China, than either North America or Europe, explaining larger multiplayer games can sell well with consumers in the Asian market.
Upcoming releases from Take-Two brands include "NBA 2K17" in September and "Mafia III" on Oct. 7. The company has several games for mobile platforms as well. Take-Two released "Grand Theft Auto: Liberty City Stories" for Android on Feb. 11 and "Battleborn Tap" for Android and the iPhone on May 3, the same day "Battleborn" was released for consoles and PCs.