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Take-Two's (TTWO) 2K Lends Virtual Key to Tiny Tina's Wonderland

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Take-Two Interactive’s (TTWO - Free Report) division 2K and Embracer Group’s subsidiary Gearbox software announced the availability of an all-new, fantasy-fueled looter shooter game from the unpredictable mind of Tiny Tina called Tiny Tina’s Wonderland.

This newest release is currently available on Xbox Series X|S, Xbox One, PlayStation5, PlayStation4 and PC via the Epic Games Store.

Undoubtedly, the upcoming game will strengthen Take-Two’s gaming portfolio that includes popular franchises like NBA, Grand Theft Auto (GTA) and Borderlands. Take-Two keeps building upon its portfolio by innovating and adding content to franchises.

Earlier this month, Take-Two’s division 2K announced the newest installment of its flagship WWE video game franchise WWE 2K22, developed by Visual Concepts.

The game features a total overhaul, including a redesigned engine and gameplay, improved graphics, and intuitive and accessible controls. The game featuring Rey Mysterio, the WWE superstar on its cover, also provides multiple new game modes and an immersive presentation and camera angles throughout.

Portfolio Strength to Aid Top-Line Growth

The two new games released this month expands Take Two’s gaming portfolio, thereby increasing revenue and booking prospects for the current quarter.

In the third quarter of fiscal 2022, Take-Two reported an increase of 4.9% year over year in net revenues to $903.3 million. Net bookings increased 6.4% to $866.1 million.

For fourth-quarter fiscal 2022, Take-Two expects GAAP net revenues between $835 million and $885 million. Net bookings are projected between $808 million and $858 million.

For fiscal 2022, net bookings are expected between $3.37 billion and $3.42 billion. GAAP net revenues are likely to be $3.41-$3.46 billion. Take-Two expects earnings between $3.10 and $3.20 per share.

Take-Two is already benefiting from the growing portfolio strength and a solid increase in recurrent consumer spending.

Moreover, in March, TTWO’s publishing label Private Division announced that it signed four new publishing agreements with leading independent game developers like Evening Star, Piccolo Studio, Yellow Brick Games and Die Gute Fabrik.

All four unannounced titles, which are currently in development, will add to the Private Division’s portfolio of titles, including OlliOlli World, The Outer Worlds, the Kerbal Space Program franchise and many others.

In February 2022, Take-Two’s publishing labels Private Division and Roll7 announced the digital availability of OlliOlli World for the Nintendo Switch, PlayStation 5 and PlayStation 4, the Xbox Series X|S and Xbox One consoles and PC via Steam.

In December 2021, Rockstar Games, another publishing label of TTWO, announced that GTA Online: The Contract is now available for download and is free for players with a copy of Grand Theft Auto V.

Take-Two’s strong content portfolio is helping it fight intensifying competition from the likes of Electronic Arts (EA - Free Report) , Zynga and Activision Blizzard (ATVI - Free Report) . All four stocks benefited from higher spending on video games due to coronavirus-induced lockdowns and shelter-in-place guidelines.

TTWO’s shares have underperformed the Zacks Toys-Games-Hobbies industry as well as peers like Electronic Arts, Activision Blizzard and Zynga in the year-to-date period.

While Take-Two’s shares have declined 13.1%, stocks in the Zacks Toys-Games-Hobbies industry have lost 3.3%, year-to-date. The stocks of Zynga and Activision have gained 43.4% and 19.6% year to date, respectively, while shares of Electronic Arts have dipped 3.5%.

Take-Two — which currently Zacks Rank #3 (Hold) — is benefiting from the digital revenues that are growing on solid demand for GTA, NBA 2K21, Red Dead Redemption, Borderlands 3, Sid Meier’s Civilization VI, Social Point’s mobile offerings, the WWE series, and the Mafia: Definitive Editions and Mafia: Trilogy. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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