Take-Two Interactive Software announced on Thursday its expectations for net bookings to rise during fiscal years 2026 and 2027, coinciding with the anticipated release of Grand Theft Auto VI slated for next year.
The company’s shares saw an increase of more than five percent in after-hours trading following the announcement.
The Grand Theft Auto franchise has been a cornerstone of Take-Two’s portfolio, earning billions in revenue since its debut in the late 1990s.
Back in May, the company had specified that the release window for GTA VI is set for the fall of 2025, laying the groundwork for the launch of the next chapter in this globally beloved video game series.
Additionally, Take-Two reported that Grand Theft Auto V has achieved remarkable success, selling over 200 million units globally, making it one of the best-selling video games of all time.
Wedbush Securities analyst Michael Pachter predicts that the growth in net bookings in the upcoming fiscal years will primarily stem from GTA VI.
In its May update, Take-Two revealed it has approximately 40 titles currently under development, set to launch through fiscal 2027.
However, the company also projected its second-quarter bookings to fall short of analysts’ expectations, attributing this to weaker in-game spending on live-service titles amidst ongoing inflationary pressures.
Take-Two anticipates second-quarter bookings to range between $1.42 billion (around Rs. 11,921 crore) and $1.47 billion (approximately Rs. 12,341 crore), while analysts had estimated an average of $1.47 billion (roughly Rs. 12,341 crore), according to LSEG data.
Furthermore, the company reported a decline in recurrent consumer spending for GTA Online during the first quarter, suggesting that player engagement may be waning after years of consistent growth.
Bookings for the first quarter amounted to $1.22 billion (approximately Rs. 10,242 crore), which was below the estimated $1.25 billion (about Rs. 10,494 crore).
Take-Two also noted that the ongoing video game performers strike is not expected to impact its development pipeline, echoing similar comments made by Electronic Arts last week.
In terms of financial performance, Take-Two surprised analysts by reporting a profit of 5 cents per share on an adjusted basis, contrasting with expectations of a 2 cent loss.
© Thomson Reuters 2024
(This story has not been edited by NDTV staff and is auto-generated from a syndicated feed.)
