Take-Two today released its financial results for the first quarter of fiscal 2025, covering the three months ending June 30, with a slight increase in bookings but deeper losses.
FY Q1 numbers
- The net profit: $1.34 billion (up 4% year-on-year)
- Site loss: $262 million (compared to a loss of $206 million in the year-ago quarter)
- Total net bookings: $1.22 billion (up 1% year-on-year)
The most important:
For the financial quarter ended June 30, Take-Two saw a small increase in bookings and revenue, but posted a rise in losses, primarily due to continued amortization of acquired intangible assets related to the acquisition of Zynga.
The company remains focused on what's to come, with references to Grand Theft Auto 6 in 2025 and details that it will release 24 games over the next two fiscal years. It consists of 15 “immersive core releases” (including six sports titles), one indie game, five mobile versions, and three new iterations of older games.
The company reiterated its full-year bookings guidance of $5.55 billion to $5.65 billion, but expects a stronger GAAP loss. And CEO Strauss Zelnick told GamesIndustry.biz that he expects “follow-on growth in fiscal 26 and 27.”
“The fiscal year started well,” he says. “The first quarter is in line with expectations, with guidance, with consensus, and we reiterated our guidance.”
For the quarter, the company continues to see growth in digital, with 83% of its revenue coming from what it calls “recurring consumer spend” (areas like DLC and microtransactions). Overall, digital accounted for 97% of its total bookings (up 2%), while 82% of console game sales were sold digitally (up from 80% in the same period last year).
The usual contenders drove growth for Take-Two, including NBA 2K24, Grand Theft Auto Online, Grand Theft Auto 5, Toon Blast, Empires & Puzzles, Match Factory, Red Dead Redemption 2, Red Dead Online, Words with Friends and Merge Dragons.
Zynga has seen success with Match Factory, which grew 50% in terms of bookings over the past quarter, while Toon Blast also continued to grow over the previous financial year, the firm says. However, there was some decline in the company's hyper-casual mobile titles and in Empires and Puzzles.
For Rockstar, Grand Theft Auto Online fell year-over-year, but beat Take-Two's projections. Meanwhile, the GTA+ subscription service saw “strong double-digit” growth over the previous year, boosted by the inclusion of classic Rockstar games including LA Noire, the firm says.
Red Dead Redemption 2 has now surpassed 65 million shipments
For the 2K label, NBA 2K24 has now shipped nearly 11 million units, down from last year's 13 million. Take-Two boss Strauss Zelnick remains confident that the game's overall performance will be “roughly flat” compared to NBA 2K23.
“There were a lot of differences between the years,” he says. “There's no doubt that overall NBA 2K sales were down. The Gen 9 platforms were all up. Now those headwinds will disappear ahead of this year's release.”
The firm says WWE 2K25 has “increased its profitability” through in-game updates and highlighted critical praise for its new release TopSpin 2K25, although it did not provide details on its commercial performance.
Elsewhere, the firm has narrowed the release window for upcoming strategy game Civilization VII, due out before the end of the financial year in March 2025.