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Net revenues increased 2% year over year to $858.2 million. Net Bookings increased 3% to $984.9 million.
The Zacks Consensus Estimate for earnings and revenues was pegged at $1.35 per share and $860 million, respectively.
NBA 2K22 and NBA 2K21; Grand Theft Auto Online and Grand Theft Auto V; Red Dead Redemption 2 and Red Dead Online; Borderlands 3; Two Dots; Sid Meier’s Civilization VI and Dragon City were the biggest contributors to the company’s second-quarter fiscal 2022 top line.
Digital revenues (90.8% of revenues) improved 7.4% year over year to $779.1 million. Physical retail and other segment revenues (9.2% of revenues) declined 31.5% year over year to $79.1 million.
TakeTwo Interactive Software, Inc. Price, Consensus and EPS Surprise
Recurrent consumer spending (virtual currency, add-on content and in-game purchases, including the allocated value of virtual currency and add-on content incorporated in special editions of certain games) increased 8% year over year and accounted for 66% of total revenues.
Top-Line Details
Region-wise, revenues from the United States (60% of revenues) increased 2.3% year over year to $514.9 million. International revenues (40% of revenues) increased 1.7% year over year to $343.3 million.
On the basis of platforms, revenues from console (69.5% of revenues) decreased 7% year over year to $596.1 million. Revenues from PC and other (17.1% of revenues) increased 6% year over year to $147 million. Revenues from mobile (13.4% of revenues) surged 88.1% year over year to $82.3 million.
Operating Details
Take Two’s gross profit decreased 1.7% year over year to $401.5 million. Reported gross margin of 46.8% contracted 180 basis points on a year-over-year basis.
Operating expenses increased 30% year over year to $381.4 million.
Operating income came in at $20.2 million, plunging 82.5% year over year. Operating margin was 2.3% compared with the year-ago quarter’s 13.7%.
Balance Sheet
As of Sep 30, 2021, Take Two had $3.05 billion in cash, cash equivalents and short-term investments compared with $2.53 billion as of Jun 30, 2021.
Guidance
For the third quarter of fiscal 2022, Take Two expects GAAP net revenues between $840 million and $890 million. The company expects earnings between 85 and 95 cents per share.
Net bookings are projected between $800 million and $850 million.
For fiscal 2022, net bookings are expected between $3.3 billion and $3.4 billion. GAAP net revenues are likely to be $3.35-$3.45 billion. Take Two expects earnings between $2.75 per share and $3 per share.
Zacks Rank & Stocks to Consider
Take-Two Interactive currently carries a Zacks Rank #3 (Hold).
Image: Bigstock
Take Two's (TTWO) Q2 Earnings Fall Y/Y Despite Top-Line Growth
Take Two Interactive Software (TTWO - Free Report) reported second-quarter fiscal 2022 earnings of 9 cents per share, down 89.5% year over year.
Net revenues increased 2% year over year to $858.2 million. Net Bookings increased 3% to $984.9 million.
The Zacks Consensus Estimate for earnings and revenues was pegged at $1.35 per share and $860 million, respectively.
NBA 2K22 and NBA 2K21; Grand Theft Auto Online and Grand Theft Auto V; Red Dead Redemption 2 and Red Dead Online; Borderlands 3; Two Dots; Sid Meier’s Civilization VI and Dragon City were the biggest contributors to the company’s second-quarter fiscal 2022 top line.
Digital revenues (90.8% of revenues) improved 7.4% year over year to $779.1 million. Physical retail and other segment revenues (9.2% of revenues) declined 31.5% year over year to $79.1 million.
TakeTwo Interactive Software, Inc. Price, Consensus and EPS Surprise
TakeTwo Interactive Software, Inc. price-consensus-eps-surprise-chart | TakeTwo Interactive Software, Inc. Quote
Recurrent consumer spending (virtual currency, add-on content and in-game purchases, including the allocated value of virtual currency and add-on content incorporated in special editions of certain games) increased 8% year over year and accounted for 66% of total revenues.
Top-Line Details
Region-wise, revenues from the United States (60% of revenues) increased 2.3% year over year to $514.9 million. International revenues (40% of revenues) increased 1.7% year over year to $343.3 million.
On the basis of platforms, revenues from console (69.5% of revenues) decreased 7% year over year to $596.1 million. Revenues from PC and other (17.1% of revenues) increased 6% year over year to $147 million. Revenues from mobile (13.4% of revenues) surged 88.1% year over year to $82.3 million.
Operating Details
Take Two’s gross profit decreased 1.7% year over year to $401.5 million. Reported gross margin of 46.8% contracted 180 basis points on a year-over-year basis.
Operating expenses increased 30% year over year to $381.4 million.
Operating income came in at $20.2 million, plunging 82.5% year over year. Operating margin was 2.3% compared with the year-ago quarter’s 13.7%.
Balance Sheet
As of Sep 30, 2021, Take Two had $3.05 billion in cash, cash equivalents and short-term investments compared with $2.53 billion as of Jun 30, 2021.
Guidance
For the third quarter of fiscal 2022, Take Two expects GAAP net revenues between $840 million and $890 million. The company expects earnings between 85 and 95 cents per share.
Net bookings are projected between $800 million and $850 million.
For fiscal 2022, net bookings are expected between $3.3 billion and $3.4 billion. GAAP net revenues are likely to be $3.35-$3.45 billion. Take Two expects earnings between $2.75 per share and $3 per share.
Zacks Rank & Stocks to Consider
Take-Two Interactive currently carries a Zacks Rank #3 (Hold).
AMC Entertainment (AMC - Free Report) , Clarus (CLAR - Free Report) and Callaway Golf are some better-ranked stocks in the broader Consumer & Discretionary sector. All three stocks carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Both AMC and Clarus are set to report their quarterly results on Nov 8. Callaway Golf is scheduled to report the same on Nov 9.