Take-Two has released its financial report for the three-month period ended September 30, 2024. The company posted modest growth in its key business metrics and shared several updates on its gaming pipeline.
Financial highlights
- According to its earnings presentation, Take-Two reached $1.35 billion in revenue in the second quarter, up 4% year-over-year.
- Mobile remained the main platform by revenue, accounting for 55% of the total. It is followed by console (36%) and PC (9%).
- Net bookings grew 2% year-over-year to $1.47 billion, above its guidance of $1.42-1.47 billion. The main drivers were the GTA and Borderlands franchises.
- Bookings from recurrent consumer spending (in-app purchases, DLC, in-game ads, etc.) rose 6% and accounted for 81% of the total.
- Net loss was $365.5 million, compared to $543.6 million in the same period last year.
- For the full FY25 ending March 31, 2025, Take-Two expects $5.55-5.65 billion in net bookings, up 5% year-over-year. The net loss outlook is $775-839 million.
Sale of Private Division
- During an earnings call, Take-Two president Karl Slatoff announced the company had decided to sell its Private Division label to “focus our resources on growing our core and mobile businesses for the long term.”
- The financial details of the deal remain undisclosed, but the unnamed new owner has acquired all rights to Private Division’s live and unreleased titles. Take-Two, however, will continue to support No Rest for the Wicked, which launched in Early Access earlier this year.
- Take-Two CEO Strauss Zelnick explained this decision by the company’s strategy to make the “biggest and best hits” in the market.
- “It became clear that our thesis, which is work with independent developers, bring them into this independently minded division, and perhaps create new, huge, durable intellectual properties for the company, was going to be challenging at best because the title is though big, were not big in the context of our core intellectual properties at 2K and Rockstar,” Zelnick said.
Game sales and future releases
- NBA 2K25 has already sold nearly 4.5 million units since launch, which is on par with last year’s installment. However, the new game saw “double-digit growth in average revenue per user and 40% growth in average gains per user.”
- GTA+, a subscription service with various bonuses for GTA Online and a library of games like Red Dead Redemption, GTA Trilogy, and Bully, grew its membership by 35% year-over-year.
Take-Two's best-selling franchises
- GTA — 435 million units sold (GTA V — 205 million, +5M from the previous quarter);
- Red Dead Redemption — 92 million units sold (RDR 2 — 67 million, +2 million from the previous quarter);
- NBA 2K — over 150 million units sold;
- BioShock — over 43 million units sold (unchanged);
- Borderlands — 89 million units sold, +2M from the previous quarter (Borderlands 2 — 29 million, Borderlands 3 — 21 million);
- Sid Meier’s Civilization — 73 million units sold (unchanged);
- Zynga’s hyper-casual games — over 3.6 billion downloads, with Hair Challenge (264 million), Tangle Master 3D (187 million), High Heels! (163 million), and Fill the Fridge (138 million) in the top 5.
- Take-Two plans to launch 22 “immersive core” releases (large AAA games like GTA and its sports franchises) by the end of FY27 (March 31, 2027).
- GTA VI is still scheduled to launch in the fall of 2025. The company expects record net bookings for FY26-27 thanks to GTA VI, Civilization VII, as well as new Mafia and Borderlands games.
- With the divestment of Private Division, Take-Two no longer has any partner indie titles in its pipeline.