Video game publisher Take-Two's quarterly booking forecast disappoints
Reuters
Published Feb 08, 2024 04:09PM ET
Updated Feb 08, 2024 06:35PM ET
By Zaheer Kachwala
(Reuters) -Take-Two Interactive Software forecast fourth-quarter bookings below market expectations and cut its annual estimates on Thursday, on signs of weak demand for its gaming titles such as "NBA 2K", sending its shares plunging 10% after the bell.
Lower consumer spending and stiff competition from players such as Electronic Arts (NASDAQ:EA) and Microsoft-owned Activision Blizzard (NASDAQ:ATVI) are hurting the video game publisher.
Take-Two (NASDAQ:TTWO) forecast fourth-quarter bookings in the range of $1.27 billion to $1.32 billion, compared with analysts' expectations of $1.51 billion, according to LSEG data.
It also cut its projection for full-year bookings to a range of $5.25 billion to $5.30 billion from its earlier forecast of $5.45 billion to $5.55 billion.
"The forecast cut is almost entirely attributable to the shift of a game out of the fiscal year, so no real impact on the company's long-term prospects", said Wedbush securities analyst Michael Pachter.
But the company's latest projection of "a little above $7 billion for net bookings" for fiscal 2025, after its last year's downwardly revised forecast of under $8 billion dashed investors' hopes.
They were expecting a boost from Take-Two's "Grand Theft Auto VI", the latest installment of the best-selling franchise that is set for a 2025 release.
"The reduction in outlook tells you it's ("Grand Theft Auto VI") not coming next fiscal year," Pachter added.
THIRD-QUARTER HIT
Take-Two's net bookings fell 3% to $1.34 billion in the third quarter, in line with analysts' estimates.
The solid performance of games such as "GTA Online" and the "Red Dead Redemption" series was partially offset by softness in mobile advertising and sales of "NBA 2K", according to Take-Two CEO Strauss Zelnick.
On an adjusted basis, the company earned 71 cents per share compared with estimates of 72 cents.
Get The News You Want
Written By: Reuters
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.