Grand Theft Auto V, Red Dead Redemption 2, and NBA 2K20 all contributed to huge sales Take-Two Interactive. the publishing house released a fourth quarter record net bookings of $ 729.4 million. This is an increase of 49% compared to the same period of the previous year. Net bookings for fiscal 2020 reached $ 2.99 billion, up from $ 2.93 billion in fiscal 2019. Take-Two notes that home orders related to COVID-19 resulted in an increase in commitment and spending in its games.
Take-Two’s line of games was uniquely positioned to ensure the success of players who took shelter there. GTA Online, Red Dead Online and NBA 2K all have very active online components. They also have business models based on microtransaction. And players showed up to spend on these in-game items. “Recurring consumer spending” (like in-game Take-Two purchases) increased by 34% for the publisher in fiscal 2020. And these purchases represented 51% of its total net bookings.
The company also reported annual earnings per share of $ 3.58, up from $ 2.95 per share in fiscal 2019.
“Our significantly better-than-expected fourth quarter results concluded another extraordinary year for Take-Two, during which we achieved many milestones,” said Strauss Zelnick, chief executive officer of Take-Two. “[That includes] record net bookings of almost $ 3 billion; as well as record net bookings delivered digitally, bookings net of recurring consumer spending and profits. Almost all of our titles outperformed in the fourth quarter, including NBA 2K20, Grand Theft Auto Online and Grand Theft Auto V, Red Dead Redemption 2, Borderlands 3 and mobile games from Social Point. “
Take-Two also revealed that GTA V has exceeded 130 million copies sold. Red Dead Redemption 2 has exceeded 21 million copies sold.
Take-Two has to walk something fine here. The law requires Take-Two to share its positive financial results. At the same time, more than 30 million Americans have filed for unemployment for the first time since mid-March. The economy is in recession, and we can have an academic discussion to find out if it is in depression.
So Take-Two also doesn’t look like a victory lap by shouting “let them eat cake”. To stand out, the publisher has already announced that it will donate 5% of its net bookings (less platform fees) to most of its larger games. This money will go to charities linked to COVID-19. Zelnick also opened his conference call with investors to offer condolences to anyone who has lost someone because of the virus.
For the future, Take-Two
Beyond COVID-19, however, what does the Take-Two have in store for us? The company does not anticipate many significant new releases in the next 10 months, but says it will not last forever.
“For the future, Take-Two has the strongest development pipeline in its history, including sequels from our largest franchises and an exciting new IP,” said Zelnick. “While fiscal year 2021 will be another year of light releases, we expect to deliver solid results, reflecting the diversity and strength of our catalog and live service offerings. We have a range of stocks that we will start launching in fiscal 2022, which we believe will lead to sequential growth in that year. Our company remains superbly positioned – creatively, operationally and financially – to capitalize on the many positive trends in our industry and to provide continued growth and returns to our shareholders over the long term. “
Translated from management class lingo: Take-Two will sell you all the microtransactions you can handle.
Take-Two forecasts net bookings of between $ 2.55 billion and $ 2.65 billion or fiscal year 2021. So Take-Two expects net bookings to decrease, but is still on the rise compared to historical results for this point in the console’s life cycle.