Take-Two Interactive Software, Inc. Reports Results for Fiscal First Quarter 2019
GAAP net revenue was
GAAP net income increased to
Net Bookings were
Company repurchased 1.60 million shares of its common stock for
Impact of Recently Adopted Accounting Standard
On
Fiscal First Quarter 2019 GAAP Financial Highlights
Net revenue was
Digitally-delivered net revenue grew to
Net income increased to
As of
The following data, together with a management reporting tax rate of 20%, are used internally by the Company’s management and Board of Directors to adjust the Company’s GAAP financial results in order to facilitate comparison of its operating performance between periods and to better understand its core business and future outlook:
Three Months Ending June 30, 2018 |
|||||||||||||||||||||
Financial Data |
|||||||||||||||||||||
$ in thousands |
Statement of operations |
Change in deferred net revenue and related cost of goods sold |
Stock-based compensation |
Non-cash amounts related to convertible notes |
Acquisition related expenses |
Amortization & impairment of acquired intangible assets |
Business reorganization |
||||||||||||||
Net revenue | $ | 387,982 | (99,657 | ) | |||||||||||||||||
Cost of goods sold | 131,365 | (8,414 | ) | (3,969 | ) | (5,072 | ) | ||||||||||||||
Gross profit | 256,617 | (91,243 | ) | 3,969 | 5,072 | ||||||||||||||||
Operating expenses | 185,771 | (20,629 | ) | (194 | ) | (1,789 | ) | 242 | |||||||||||||
Income from operations | 70,846 | (91,243 | ) | 24,598 | 194 | 6,861 | (242 | ) | |||||||||||||
Interest and other, net | 6,601 | (595 | ) | 91 | |||||||||||||||||
Income before income taxes | 77,447 | (91,838 | ) | 24,598 | 91 |
194 |
6,861 | (242 | ) | ||||||||||||
In order to calculate net income per diluted share for management reporting purposes, the Company uses its fully diluted share count of 116.0 million.
Operational Metric – Net Bookings
Net Bookings is defined as the net amount of products and services sold digitally or sold-in physically during the period, and includes licensing fees, merchandise, in-game advertising, strategy guides and publisher incentives.
During fiscal first quarter 2019, total Net Bookings were
Catalog accounted for
Digitally-delivered Net Bookings were
Management Comments
“Fiscal 2019 is off to a solid start, with first quarter operating
results that exceeded our expectations,” said Strauss Zelnick, Chairman
and CEO of Take-Two. “This performance was driven by
better-than-expected recurrent consumer spending on Grand Theft Auto
Online and
“We are incredibly excited about the
Business and Product Highlights
Since
Take-Two:
-
Repurchased 1.60 million shares of its common stock for
$153.5 million .
Rockstar Games:
- Released Grand Theft Auto V: Premium Online Edition for PlayStation® 4, Xbox One and Windows PC. The Premium Online Edition includes the complete Grand Theft Auto V story experience, the ever-evolving world of Grand Theft Auto Online, and all existing gameplay upgrades and content. Purchasers also receive the Criminal Enterprise Starter Pack that gives players access to a huge range of content including properties, vehicles, weapons and more valued at over GTA$10,000,000 plus GTA$1,000,000 Bonus Cash.
-
Released new free content updates for Grand Theft Auto Online,
including:
-
GTA Online: After Hours, which enables players to partner
with legendary club impresario
Tony Prince to open and operate a top-shelf nightclub featuring world-class DJ acts and use that club as a front for a network of criminal enterprises. - Two new modes for The Southern San Andreas Super Sport Series update: Weeny Issi Classic Races and Target Assault Races.
- Seven new Transform Races, including Canal Crosser, Size Matters, the Grotti Circuit, Plane and Simple, Evolution, Tug Life and Twister II.
- Madrazo Dispatch Services, a new set of assassination-based Contact Missions.
- Trap Door mode, where teams strapped with an arsenal of weaponry compete on a rapidly shrinking floating platform high above the Pacific.
- New Special Vehicle Circuit Races, including Imponte Deluxo Races, Ocelot Stromberg Races and Mammoth Thruster Races.
-
GTA Online: After Hours, which enables players to partner
with legendary club impresario
- Announced details for the Special Edition and Ultimate Edition of Red Dead Redemption 2, along with extra pre-order bonuses for all three versions and a unique assemblage of real-world collectibles inspired by the game.
2K:
-
Announced that
NBA 2K18 has now sold-in more than 10 million units, setting a new record for the franchise. Since its inception in 1999, theNBA 2K franchise has sold-in more than 80 million units worldwide and is the top-rated and top-sellingNBA video game simulation series of the past 17 years*. -
Announced that they will be the exclusive publisher of Saber
Interactive’s upcoming arcade-action sports game –
NBA 2K Playgrounds 2. This over-the-top, two-on-two basketball experience will complement 2K’s top-sellingNBA 2K series and expand the label’s footprint in the basketball video game space. The title will be released this fall for Xbox One, PlayStation 4, Nintendo Switch™ and Windows PC. -
Announced that Milwaukee Bucks standout and
two-time NBA All-Star Giannis Antetokounmpo will be the cover athlete
of the
NBA 2K19 Standard Edition, the next iteration of our top-rated and top-selling NBA video game simulation series for the past 17 years, which will launch onSeptember 11, 2018 for PlayStation4, Xbox One, Nintendo Switch and Windows PC. Players who pre-order theNBA 2K19 Standard Edition receive bonus digital items, including virtual currency and MyTEAM cards. Also, 2K will release theNBA 2K19 20th Anniversary Edition, featuring three-time NBA Champion, four-time NBA MVP and avid NBA 2K gamer LeBron James on the cover. In addition to exclusive James-themed content and items, fans who purchase the NBA 2K19 20th Anniversary Edition will receive the game four days early, beginning on September 7, 2018. Players looking to get a head start on NBA 2K19’s MyCAREER can download the all-new NBA 2K19: The Prelude beginning on August 31, 2018 available on Xbox One and PlayStation 4. -
Announced AJ Styles as the cover Superstar for WWE 2K19, the
next release from our flagship WWE video game franchise, which will
launch on
October 9, 2018 for PlayStation 4, Xbox One and Windows PC. 2K also disclosed plans for the WWE 2K19 Million Dollar Challenge, where eligible entrants can participate in an international contest in which the finalist will compete one-on-one in WWE 2K19 against AJ Styles for the chance to win$1 million . Players who pre-order WWE 2K19 at participating retailers will receive two playable characters as a bonus, including “Rowdy” Ronda Rousey® and former WWE Champion Rey Mysterio®. In addition, players who purchase the WWE 2K19 Deluxe Edition or WWE 2K19 Wooooo! Edition (featuring WWE Hall of FamerRic Flair ) from participating retailers will receive Early Access to their game copies and in-game bonuses beginning four days early on October 5, 2018. - Announced that Carnival Games®, the next entry in the popular franchise that has sold-in over 9.5 million units worldwide, is coming to Nintendo Switch on November 6, 2018. Built from the ground up for Nintendo Switch, Carnival Games can be played alone or with up to four players simultaneously, leveraging the unique accessibility of the console’s Joy-Con controllers. The game features 20 exciting and re-imagined games in four unique alleys that can be played at home or on the go, alone or with family and friends.
Private Division:
- Announced that Kerbal Space Program will be released on Tencent’s WeGame distribution platform as a premium PC game at a date to be determined.
* According to 2000 - 2018 Metacritic.com and Gamerankings.com.
Financial Outlook for Fiscal 2019
Take-Two is providing its initial financial outlook for its fiscal
second quarter ending
Second Quarter Ending
-
GAAP net revenue is expected to range from
$480 to $530 million -
GAAP net income is expected to range from
$50 to $62 million -
GAAP diluted net income per share is expected to range from
$0.43 to$0.53 - Share count used to calculate GAAP diluted net income per share is expected to be 116.9 million (1)
-
Net Bookings (operational metric) are expected to range from
$500 to$550 million
The Company is also providing selected data and its management reporting tax rate of 20% that are used internally by its management and Board of Directors to adjust the Company’s GAAP financial outlook in order to facilitate comparison of its operating performance between periods and to better understand its core business and future outlook:
Three Months Ending September 30, 2018 |
||||||||||||
Financial Data |
||||||||||||
$ in millions | GAAP outlook (2) |
Change in deferred net revenue and related cost of goods sold |
Stock-based compensation |
Amortization of acquired intangible assets |
||||||||
Net revenue | $480 to $530 | $20 | ||||||||||
Cost of goods sold | $191 to $217 | $5 | ($6) | ($2) | ||||||||
Operating Expenses | $235 to $245 | ($32) | ($2) | |||||||||
Interest and other, net | ($6) | |||||||||||
Income before income taxes | $59 to $74 | $15 | $38 | $4 | ||||||||
Fiscal Year Ending
-
GAAP net revenue is expected to range from
$2.50 to $2.60 billion -
GAAP net income is expected to range from
$169 to $199 million -
GAAP diluted net income per share is expected to range from
$1.45 to$1.70 - Share count used to calculate GAAP diluted net income per share is expected to be 116.9 million (3)
-
Net cash provided by operating activities is expected to be
approximately
$785 million , which includes an increase of$72.0 million recorded in fiscal first quarter 2019 due to the Company’s adoption of Accounting Standards Update 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash. -
Capital expenditures are expected to be approximately
$60 million -
Net Bookings (operational metric) are expected to range from
$2.70 to$2.80 billion
The Company is also providing selected data and its management reporting tax rate of 20% that are used internally by its management and Board of Directors to adjust the Company’s GAAP financial outlook in order to facilitate comparison of its operating performance between periods and to better understand its core business and future outlook:
Twelve Months Ending March 31, 2019 |
||||||||||||
Financial Data |
||||||||||||
$ in millions | GAAP outlook (2) |
Change in deferred net revenue and related cost of goods sold |
Stock-based compensation |
Amortization of acquired intangible assets |
||||||||
Net revenue | $2,500 to $2,600 | $200 | ||||||||||
Cost of goods sold | $1,432 to $1,456 | $100 | ($180) | ($10) | ||||||||
Operating Expenses | $900 to $940 | ($116) | ($7) | |||||||||
Interest and other, net | ($25) | |||||||||||
Income before income taxes | $194 to 229 | $100 | $296 | $17 | ||||||||
1) | For the fiscal second quarter ending September 30, 2018, the Company’s fully diluted share count used for both GAAP and management reporting purposes is expected to be 116.9 million, which includes 113.8 million basic shares and 3.1 million shares representing the potential dilution from unvested employee stock grants. | |||||
2) | The individual components of the financial outlook may not foot to the totals as the Company does not expect actual results for every component to be at the low end or high end of the outlook range simultaneously. | |||||
3) | For the fiscal year ending March 31, 2019, the Company’s fully diluted share count used for both GAAP and management reporting purposes is expected to be 116.9 million, which includes 113.7 million basic shares and 3.2 million shares representing the potential dilution from unvested employee stock grants. | |||||
Key assumptions and dependencies underlying the Company’s financial outlook include: the timely delivery of the titles included in this financial outlook; continued consumer acceptance of Xbox One and PlayStation 4; the ability to develop and publish products that capture market share for these new-generation systems while also leveraging opportunities on Nintendo Switch, Xbox 360, PlayStation 3, PC and mobile platforms; and stable foreign exchange rates. See also “Cautionary Note Regarding Forward Looking Statements” below.
Product Releases
The following titles were released since
Label |
Title |
Platforms |
Release Date |
|||||||||
Rockstar Games |
Grand Theft Auto V: Premium Online Edition |
PS4, Xbox One, PC |
April 20, 2018 |
|||||||||
Take-Two's lineup of future titles announced to date includes: |
||||||||||||
Label |
Title |
Platforms |
Release Date |
|||||||||
2K |
NBA 2K19 20th Anniversary Edition |
PS4, Xbox One, Switch, PC | September 7, 2018 | |||||||||
2K |
NBA 2K19 Standard Edition |
PS4, Xbox One, Switch, PC | September 11, 2018 | |||||||||
2K |
WWE 2K19 Deluxe and Wooooo! Editions |
PS4, Xbox One, PC | October 5, 2018 | |||||||||
2K |
WWE 2K19 Standard Edition |
PS4, Xbox One, PC | October 9, 2018 | |||||||||
Rockstar Games |
Red Dead Redemption 2 |
PS4, Xbox One | October 26, 2018 | |||||||||
2K |
Carnival Games |
Switch | November 6, 2018 | |||||||||
2K |
NBA 2K Playgrounds 2 |
PS4, Xbox One, Switch, PC | Fall 2018 | |||||||||
Conference Call
Take-Two will host a conference call today at
Final Results
The financial results discussed herein are presented on a preliminary
basis; final data will be included in Take-Two’s Quarterly Report on
Form 10-Q for the period ended
About
Headquartered in
All trademarks and copyrights contained herein are the property of their respective holders.
Cautionary Note Regarding Forward-Looking Statements
The statements contained herein which are not historical facts are
considered forward-looking statements under federal securities laws and
may be identified by words such as "anticipates," "believes,"
"estimates," "expects," "intends," "plans," "potential," "predicts,"
"projects," "seeks," “should,” "will," or words of similar meaning and
include, but are not limited to, statements regarding the outlook for
the Company's future business and financial performance. Such
forward-looking statements are based on the current beliefs of our
management as well as assumptions made by and information currently
available to them, which are subject to inherent uncertainties, risks
and changes in circumstances that are difficult to predict. Actual
outcomes and results may vary materially from these forward-looking
statements based on a variety of risks and uncertainties including: our
dependence on key management and product development personnel, our
dependence on our Grand Theft Auto products and our ability to
develop other hit titles, the timely release and significant market
acceptance of our games, the ability to maintain acceptable pricing
levels on our games, and risks associated with international operations.
Other important factors and information are contained in the Company's
most recent Annual Report on Form 10-K, including the risks summarized
in the section entitled "Risk Factors," the Company’s most recent
Quarterly Report on Form 10-Q, and the Company's other periodic filings
with the
TAKE-TWO INTERACTIVE SOFTWARE, INC. and SUBSIDIARIES | ||||||||||
CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||||
(in thousands, except per share amounts) | ||||||||||
Three months ended June 30, | ||||||||||
2018 | 2017 | |||||||||
Net revenue | $ | 387,982 | $ | 418,216 | ||||||
Cost of goods sold: | ||||||||||
Internal royalties | 53,167 | 77,704 | ||||||||
Product costs | 38,141 | 44,069 | ||||||||
Software development costs and royalties | 29,788 | 43,629 | ||||||||
Licenses | 10,269 | 29,167 | ||||||||
Total cost of goods sold | 131,365 | 194,569 | ||||||||
Gross profit | 256,617 | 223,647 | ||||||||
General and administrative | 67,735 | 60,603 | ||||||||
Selling and marketing | 58,306 | 52,214 | ||||||||
Research and development | 50,712 | 42,269 | ||||||||
Depreciation and amortization | 9,260 | 7,743 | ||||||||
Business reorganization | (242 | ) | 10,599 | |||||||
Total operating expenses | 185,771 | 173,428 | ||||||||
Income from operations | 70,846 | 50,219 | ||||||||
Interest and other, net | 6,601 | (2,808 | ) | |||||||
Income before income taxes | 77,447 | 47,411 | ||||||||
Provision for (benefit from) income taxes | 5,754 | (12,865 | ) | |||||||
Net income | $ | 71,693 | $ | 60,276 | ||||||
Earnings per share: | ||||||||||
Basic earnings per share | $ | 0.63 | $ | 0.57 | ||||||
Diluted earnings per share | $ | 0.62 | $ | 0.56 | ||||||
Weighted average shares outstanding: | ||||||||||
Basic | 112,941 | 104,465 | ||||||||
Diluted | 115,985 | 117,753 | ||||||||
Computation of Basic EPS: | ||||||||||
Net income | $ | 71,693 | $ | 60,276 | ||||||
Less: net income allocated to participating securities | - | (588 | ) | |||||||
Net income for basic EPS calculation | $ | 71,693 | $ | 59,688 | ||||||
Weighted average shares outstanding - basic | 112,941 | 105,494 | ||||||||
Less: weighted average participating shares outstanding | - | (1,029 | ) | |||||||
Weighted average common shares outstanding - basic | 112,941 | 104,465 | ||||||||
Basic earnings per share | $ | 0.63 | $ | 0.57 | ||||||
Computation of Diluted EPS: | ||||||||||
Net income | $ | 71,693 | $ | 60,276 | ||||||
Less: net income allocated to participating securities | - | (522 | ) | |||||||
Add: interest expense, net of tax, on Convertible Notes | 95 | 5,750 | ||||||||
Net income for diluted EPS calculation | $ | 71,788 | $ | 65,504 | ||||||
Weighted average common shares outstanding - basic | 112,941 | 105,494 | ||||||||
Add: dilutive effect of common stock equivalents | 3,044 | 13,288 | ||||||||
Total weighted average shares outstanding - diluted | 115,985 | 118,782 | ||||||||
Less: weighted average participating shares outstanding | - | (1,029 | ) | |||||||
Weighted average common shares outstanding - diluted | 115,985 | 117,753 | ||||||||
Diluted earnings per share | $ | 0.62 | $ | 0.56 | ||||||
TAKE-TWO INTERACTIVE SOFTWARE, INC. and SUBSIDIARIES | ||||||||||
CONSOLIDATED BALANCE SHEETS | ||||||||||
(in thousands, except per share amounts) | ||||||||||
June 30, | March 31, | |||||||||
2018 | 2018 | |||||||||
ASSETS | (Unaudited) | |||||||||
Current assets: | ||||||||||
Cash and cash equivalents | $ | 464,804 | $ | 808,973 | ||||||
Short-term investments | 637,456 | 615,406 | ||||||||
Restricted cash | 509,380 | 437,398 | ||||||||
Accounts receivable, net of allowances of $350 and $54,290 at June 30, 2018 and March 31, 2018, respectively |
239,736 | 247,649 | ||||||||
Inventory | 10,642 | 15,162 | ||||||||
Software development costs and licenses | 12,676 | 33,284 | ||||||||
Deferred cost of goods sold | 19,141 | 117,851 | ||||||||
Prepaid expenses and other | 180,512 | 133,454 | ||||||||
Total current assets | 2,074,347 | 2,409,177 | ||||||||
Fixed assets, net | 105,852 | 102,478 | ||||||||
Software development costs and licenses, net of current portion | 719,870 | 639,369 | ||||||||
Deferred cost of goods sold, net of current portion | 736 | 26,719 | ||||||||
Goodwill | 387,328 | 399,530 | ||||||||
Other intangibles, net | 91,954 | 103,681 | ||||||||
Other assets | 75,917 | 56,887 | ||||||||
Total assets | $ | 3,456,004 | $ | 3,737,841 | ||||||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||||
Current liabilities: | ||||||||||
Accounts payable | $ | 33,767 | $ | 35,029 | ||||||
Accrued expenses and other current liabilities | 906,881 | 914,748 | ||||||||
Deferred revenue | 450,568 | 777,152 | ||||||||
Total current liabilities | 1,391,216 | 1,726,929 | ||||||||
Long-term debt | 5,232 | 8,068 | ||||||||
Non-current deferred revenue | 15,861 | 355,589 | ||||||||
Other long-term liabilities | 191,490 | 158,285 | ||||||||
Total liabilities | 1,603,799 | 2,248,871 | ||||||||
Stockholders' equity: | ||||||||||
Preferred stock, $.01 par value, 5,000 shares authorized |
- |
- |
||||||||
Common stock, $.01 par value, 200,000 shares authorized; 113,811 and 132,743 shares | ||||||||||
issued and 113,509 and 114,038 outstanding at June 30, 2018 and March 31, 2018, respectively | 1,338 | 1,327 | ||||||||
Additional paid-in capital | 1,888,080 | 1,888,039 | ||||||||
Treasury stock, at cost; 20,302 and 18,705 common shares at June 30, 2018 and March 31, 2018, respectively | (611,680 | ) | (458,180 | ) | ||||||
Retained earnings | 615,482 | 73,516 | ||||||||
Accumulated other comprehensive loss | (41,015 | ) | (15,732 | ) | ||||||
Total stockholders' equity | 1,852,205 | 1,488,970 | ||||||||
Total liabilities and stockholders' equity | $ | 3,456,004 | $ | 3,737,841 | ||||||
TAKE-TWO INTERACTIVE SOFTWARE, INC. and SUBSIDIARIES |
||||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS |
||||||||
(in thousands) |
||||||||
Three months ended June 30, | ||||||||
2018 |
2017 (as adjusted) (1) |
|||||||
Operating activities: |
||||||||
Net income | $ | 71,693 | $ | 60,276 | ||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||
Amortization and impairment of software development costs and licenses | 6,858 | 18,206 | ||||||
Depreciation | 9,130 | 7,743 | ||||||
Amortization of intellectual property | 6,861 | 8,181 | ||||||
Stock-based compensation | 24,598 | 24,071 | ||||||
Amortization of discount on Convertible Notes | 91 | 5,237 | ||||||
Gain on redemption of Convertible Notes | - | (1,103 | ) | |||||
Amortization of debt issuance costs | 32 | 188 | ||||||
Other, net | (3,103 | ) | (9,669 | ) | ||||
Changes in assets and liabilities, net of impact of adoption of Topic 606: | ||||||||
Accounts receivable | 61,355 | (9,294 | ) | |||||
Inventory | 3,692 | 5,451 | ||||||
Software development costs and licenses | (54,663 | ) | (71,829 | ) | ||||
Prepaid expenses and other current and other non-current assets | (21,464 | ) | (23,199 | ) | ||||
Deferred revenue | (95,075 | ) | (67,883 | ) | ||||
Deferred cost of goods sold | 8,409 | 32,233 | ||||||
Accounts payable, accrued expenses and other liabilities | (29,597 | ) | 71,281 | |||||
Net cash (used in) provided by operating activities | (11,183 | ) | 49,890 | |||||
Investing activities: |
||||||||
Change in bank time deposits | (29,840 | ) | (24,999 | ) | ||||
Proceeds from available-for-sale securities | 51,388 | 62,205 | ||||||
Purchases of available-for-sale securities | (44,108 | ) | (41,148 | ) | ||||
Purchases of fixed assets | (14,289 | ) | (16,092 | ) | ||||
Asset acquisition | - | (25,381 | ) | |||||
Business acquisition | (3,149 | ) | - | |||||
Net cash used in investing activities | (39,998 | ) | (45,415 | ) | ||||
Financing activities: |
||||||||
Tax payment related to net share settlements on restricted stock awards | (58,403 | ) | (57,689 | ) | ||||
Repurchase of common stock | (153,500 | ) | - | |||||
Net cash used in financing activities | (211,903 | ) | (57,689 | ) | ||||
Effects of foreign currency exchange rates on cash and cash equivalents | (9,103 | ) | 6,448 | |||||
Net change in cash and cash equivalents and restricted cash | (272,187 | ) | (46,766 | ) | ||||
Cash and cash equivalents and restricted cash, beginning of year | 1,246,371 | 1,281,214 | ||||||
Cash and cash equivalents and restricted cash, end of period | $ | 974,184 | $ | 1,234,448 |
(1) During Q1 FY19, the Company adopted Accounting Standards Update 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash and applied that standard retroactively. The application of this new standard resulted in an increase to net cash from operating activities of $68.5 million in Q1 FY18 and $72.0 million in Q1 FY19, which are reflected herein. |
TAKE-TWO INTERACTIVE SOFTWARE, INC. and SUBSIDIARIES | ||||||||||||
Net Revenue and Net Bookings by Geographic Region, Distribution Channel, and Platform Mix | ||||||||||||
(in thousands) | ||||||||||||
Three Months Ended
June 30, 2018 |
Three Months Ended
June 30, 2017 |
|||||||||||
Amount | % of Total | Amount | % of Total | |||||||||
Net revenue by geographic region | ||||||||||||
United States | $ | 221,411 | 57 | % | $ | 258,260 | 62 | % | ||||
International | 166,571 | 43 | % | 159,956 | 38 | % | ||||||
Total net revenue | $ | 387,982 | 100 | % | $ | 418,216 | 100 | % | ||||
Net bookings by geographic region | ||||||||||||
United States | $ | 156,648 | 54 | % | $ | 199,871 | 57 | % | ||||
International | 131,677 | 46 | % | 148,434 | 43 | % | ||||||
Total net bookings | $ | 288,325 | 100 | % | $ | 348,305 | 100 | % | ||||
Three Months Ended
June 30, 2018 |
Three Months Ended
June 30, 2017 |
|||||||||||
Amount | % of Total | Amount | % of Total | |||||||||
Net revenue by distribution channel | ||||||||||||
Digital online | $ | 315,047 | 81 | % | $ | 268,235 | 64 | % | ||||
Physical retail and other | 72,935 | 19 | % | 149,981 | 36 | % | ||||||
Total net revenue | $ | 387,982 | 100 | % | $ | 418,216 | 100 | % | ||||
Net bookings by distribution channel | ||||||||||||
Digital online | $ | 252,761 | 88 | % | $ | 280,914 | 81 | % | ||||
Physical retail and other | 35,564 | 12 | % | 67,391 | 19 | % | ||||||
Total net bookings | $ | 288,325 | 100 | % | $ | 348,305 | 100 | % | ||||
Three Months Ended
June 30, 2018 |
Three Months Ended
June 30, 2017 |
|||||||||||
Amount | % of Total | Amount | % of Total | |||||||||
Net revenue by platform mix | ||||||||||||
Console | $ | 294,730 | 76 | % | $ | 344,917 | 82 | % | ||||
PC and other | 93,252 | 24 | % | 73,299 | 18 | % | ||||||
Total net revenue | $ | 387,982 | 100 | % | $ | 418,216 | 100 | % | ||||
Net bookings by platform mix | ||||||||||||
Console | $ | 199,921 | 69 | % | $ | 265,750 | 76 | % | ||||
PC and other | 88,404 | 31 | % | 82,555 | 24 | % | ||||||
Total net bookings | $ | 288,325 | 100 | % | $ | 348,305 | 100 | % | ||||
TAKE-TWO INTERACTIVE SOFTWARE, INC. and SUBSIDIARIES | |||||||||||||||||||||||||||
ADDITIONAL DATA | |||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||
Three Months Ended June 30, 2018 |
Net revenue |
Cost of goods sold- internal royalties |
Cost of goods sold- software development costs and royalties |
Cost of goods sold- product costs |
Cost of goods sold- licenses |
General and administrative |
|||||||||||||||||||||
As reported | $ | 387,982 | $ | 53,167 | $ | 29,788 | $ | 38,141 | $ | 10,269 | $ | 67,735 | |||||||||||||||
Net effect from deferral and related cost of goods sold | (99,657 | ) | (9 | ) | (8,405 | ) | - | ||||||||||||||||||||
Stock-based compensation | (3,969 | ) | (11,518 | ) | |||||||||||||||||||||||
Amortization and impairment of acquired intangibles | (5,072 | ) | |||||||||||||||||||||||||
Acquisition related expenses | (194 | ) | |||||||||||||||||||||||||
Three Months Ended June 30, 2018 |
Selling and marketing |
Research and development |
Depreciation and amortization |
Business reorganization |
Interest and other, net |
||||||||||||||||||||||
As reported | $ | 58,306 | $ | 50,712 | $ | 9,260 | $ | (242 | ) | $ | 6,601 | ||||||||||||||||
Net effect from deferral and related cost of goods sold | (595 | ) | |||||||||||||||||||||||||
Stock-based compensation | (4,774 | ) | (4,337 | ) | |||||||||||||||||||||||
Non-cash amounts related to convertible notes | 91 | ||||||||||||||||||||||||||
Amortization and impairment of acquired intangibles | (1,659 | ) | (130 | ) | |||||||||||||||||||||||
Impact of business reorganization | 242 | ||||||||||||||||||||||||||
Three Months Ended June 30, 2017 | Net revenue |
Cost of goods sold- internal royalties |
Cost of goods sold- software development costs and royalties |
Cost of goods sold- product costs |
Cost of goods sold- licenses |
General and administrative |
|||||||||||||||||||||
As reported | $ | 418,216 | $ | 77,704 | $ | 43,629 | $ | 44,069 | $ | 29,167 | $ | 60,603 | |||||||||||||||
Net effect from deferral and related cost of goods sold | (69,911 | ) | (7,654 | ) | (17,806 | ) | (14,831 | ) | |||||||||||||||||||
Stock-based compensation | (3,481 | ) | (13,120 | ) | |||||||||||||||||||||||
Amortization of intangibles | (4,242 | ) | |||||||||||||||||||||||||
Acquisition related expenses | (18 | ) | |||||||||||||||||||||||||
Three Months Ended June 30, 2017 |
Selling and marketing |
Research and development |
Business reorganization |
Depreciation and amortization |
Interest and other, net |
||||||||||||||||||||||
As reported | $ | 52,214 | $ | 42,269 | $ | 10,599 | $ | 7,743 | $ | (2,808 | ) | ||||||||||||||||
Stock-based compensation | (2,585 | ) | (2,464 | ) | (2,421 | ) | |||||||||||||||||||||
Non-cash amounts related to convertible notes | 5,237 | ||||||||||||||||||||||||||
Amortization of intangibles | (2,308 | ) | (1,523 | ) | (120 | ) | (1,103 | ) | |||||||||||||||||||
Acquisition related expenses | |||||||||||||||||||||||||||
Impact of business reorganization | (8,178 | ) |
View source version on businesswire.com: https://www.businesswire.com/news/home/20180802005735/en/
Source: Take-Two Interactive
Take-Two Interactive Software, Inc. Investor Relations: Henry A. Diamond, 646-536-3005 Senior Vice President Investor Relations & Corporate Communications Henry.Diamond@take2games.com or Corporate Press: Alan Lewis, 646-536-2983 Vice President Corporate Communications & Public Affairs Alan.Lewis@take2games.com