Take-Two recovers during Q1, thanks to Grand Theft Auto
A lot of things are currently happening at the backstage of Take-Two Interactive: investors threatening to take over and a Jack Thompson lawsuit yet again. Despite all these, it looks like the video game developer/publisher is unfazed as Take-Two just reported that its total losses narrowed during the first quarter of 2007.
Its net revenue for the three months ending on January 31 was US$ 277.3 million, while it was only at around US$ 265 million at the same time last year. The net loss back in 2006 used to be at US$ 29.1 million.
But now, Take-Two is saying that its net loss is just around US$ 21.5 million, and quite amusingly, US$ 6.4 million of that was used for legal and other professional fees connected to Take-Two’s recent stock option investigation.
Take-Two’s cash position was at US$ 138.2 at the end of the quarter, thanks to Grand Theft Auto: Vice City Stories, and the 360 versions of The Elder Scrolls IV: Oblivion, College Hoops 2K7, and NBA 2K7. If you really want to know, operating expenses fell by US$ 10.0 million as a result of reduced sales and marketing expenses, not to mention the closure of its three studios in 2006.
Despite these good numbers, several research companies headed by Wedbush Morgan are still doubtful about Take-Two’s future. Analyst Michael Pachter commented,
We think that Take-Two’s flagship franchise, Grand Theft Auto, will continue to generate significant profits, but it is clear that the profit potential from its sports business and from “everything else” will not be realized in FY:07. If the company achieves merely “break even” results, profits from GTA will be fully offset by losses from everything else.
A lot of things are currently happening at the backstage of Take-Two Interactive: investors threatening to take over and a Jack Thompson lawsuit yet again. Despite all these, it looks like the video game developer/publisher is unfazed as Take-Two just reported that its total losses narrowed during the first quarter of 2007.
Its net revenue for the three months ending on January 31 was US$ 277.3 million, while it was only at around US$ 265 million at the same time last year. The net loss back in 2006 used to be at US$ 29.1 million.
But now, Take-Two is saying that its net loss is just around US$ 21.5 million, and quite amusingly, US$ 6.4 million of that was used for legal and other professional fees connected to Take-Two’s recent stock option investigation.
Take-Two’s cash position was at US$ 138.2 at the end of the quarter, thanks to Grand Theft Auto: Vice City Stories, and the 360 versions of The Elder Scrolls IV: Oblivion, College Hoops 2K7, and NBA 2K7. If you really want to know, operating expenses fell by US$ 10.0 million as a result of reduced sales and marketing expenses, not to mention the closure of its three studios in 2006.
Despite these good numbers, several research companies headed by Wedbush Morgan are still doubtful about Take-Two’s future. Analyst Michael Pachter commented,
We think that Take-Two’s flagship franchise, Grand Theft Auto, will continue to generate significant profits, but it is clear that the profit potential from its sports business and from “everything else” will not be realized in FY:07. If the company achieves merely “break even” results, profits from GTA will be fully offset by losses from everything else.
About The Author
