TAKE-TWO INTERACTIVE SOFTWARE, INC (NASDAQ:TTWO) stock rose 12% (As on May 18, 11:17:57 AM UTC-4, Source: Google Finance) after the company showed a loss of $610.3 million compared to net income of $110.9 million, in the same period last year. The net bookings grew 65% to $1.4 billion in the fourth quarter of FY 23 while the analysts had anticipated net bookings of $1.34 billion. Recurrent consumer spending increased 94% and accounted for 79% of total GAAP net revenue. Digitally-delivered GAAP net revenue increased 67% to $1.39 billion, as compared to $833.4 million in last year’s fiscal fourth quarter, and accounted for 96% of total GAAP net revenue. The largest contributors to GAAP net revenue were NBA 2K23 and NBA 2K22; Grand Theft Auto Online and Grand Theft Auto V; the hyper-casual mobile portfolio; Empires & Puzzles, Toon Blast; Red Dead Redemption 2 and Red Dead Online; Merge Dragons! Words With Friend; and Zynga Poker.
Moreover, net Bookings from recurrent consumer spending grew 115% and accounted for 78% of total Net Bookings. Digitally-delivered Net Bookings were up 76% to $1.35 billion, as compared to $765.8 million in last year’s fiscal fourth quarter, and accounted for 97% of total Net Bookings. The largest contributors to Net Bookings were NBA 2K23; Grand Theft Auto Online and Grand Theft Auto V; our hyper-casual mobile portfolio; Empires & Puzzles; Toon Blast; Red Dead Redemption 2 and Red Dead Online; WWE® 2K23; Merge Dragons!; and Words With Friends.
TTWO in the fourth quarter of FY 23 has reported the adjusted loss per share of $3.62, missing the analysts’ estimates for the adjusted loss per share of $1.22. The company had reported the adjusted revenue growth of 56 percent to $1.45 billion in the fourth quarter of FY 23, beating the analysts’ estimates for revenue of $1.35 billion.
The company expects fiscal 2024 net bookings between $5.45 billion and $5.55 billion, which is below consensus expectations of $6.11 billion, according to FactSet.
Additionally, on April 14th, Take-Two announced that it completed an underwritten public offering and sale of $1.0 billion aggregate principal amount of its Senior Notes, consisting of $500 million of its 5.000% Senior Notes due 2026 and $500 million of its 4.950% Senior Notes due 2028. Subsequently, the Company used $350.0 million of the proceeds to prepay all of its outstanding term loan. The remainder of the proceeds will be used for general corporate purposes, including the repurchase or retirement of the Company’s other outstanding indebtedness.