Gaming company Take-Two Interactive (TTWO) turned to profit in the September quarter from a loss last year, aided by a sharp increase in revenues. The results came in above Wall Street estimates and the company’s stock gained in the after-hours trading Wednesday.
The company, which is the parent of Rockstar Games and 2K, reported a net profit of $25.4 million or $0.22 per share for the September quarter, compared to a loss of $2.7 million or $0.03 per share in the year-ago quarter. The bottom-line surpassed analysts’ estimate.
Revenues moved up 11% to $492.7 billion during the quarter, reflecting the growing popularity of gaming franchises like Grand Theft Auto V and NBA 2K18. During the quarter, the company’s net bookings grew 1% to $583.4 million.
“Take-Two delivered better-than-expected operating results, including growth in Net Bookings, during the fiscal second quarter. This outperformance was driven primarily by Grand Theft Auto V and Grand Theft Auto Online, as well as the successful launch of NBA 2K19,” said CEO Strauss Zelnick.
Revenues moved up 11% to $492.7 billion, reflecting the growing popularity of gaming franchises like Grand Theft Auto V and NBA 2K18
For the third quarter, the company expects revenues between $1.10 billion and $1.15 billion. Earnings of the December quarter are forecast in the range of $36 million ($0.31 per share) to $48 million ($0.41 per share). For fiscal 2018, the management is looking for revenues in the range of $2.55 billion to $2.65 billion. The outlook for full-year net profit is between $202 million ($1.73 per share) and $232 million ($1.98 per share).
In the first quarter of fiscal 2019, the company’s revenues dropped 7% to $388 million. Earnings, meanwhile, rose to $0.62 per share and surpassed estimates.
Take-Two Interactive shares closed Wednesday’s regular trading session higher. The stock, which grew 8.5% over the past twelve months, gained about 2% following the earnings report.