Net revenue for the first quarter was $256.8 million, compared to $240.4 million for the same quarter of fiscal 2008. First quarter sales were led by Grand Theft Auto IV, Carnival Games, NBA 2K9 and Midnight Club: Los Angeles.
Net loss for the first quarter was $50.4 million or $0.66 per share, compared to a net loss of $38.0 million or $0.52 per share in the first quarter of fiscal 2008. The Company’s increased loss for the first quarter compared to the prior year was primarily due to higher marketing, legal, and research and development expenses.
The first quarter results include $6.2 million in stock-based compensation expense ($0.08 per share) and $4.9 million in expenses related to unusual legal matters ($0.06 per share). Results for the first quarter of 2008 included $6.1 million in stock-based compensation expense ($0.08 per share) and $1.7 million in expenses related to unusual legal matters and business reorganization costs ($0.02 per share).
Non-GAAP net loss was $39.3 million or $0.52 per share in the first quarter, compared to a net loss of $30.3 million or $0.41 per share in the first quarter of 2008. (Please refer to Non-GAAP Financial Measures and reconciliation tables included later in this release for additional information and details on non-GAAP items.)
Among the significant recent business developments, Take-Two noted the following:
- Over 13 million units of Rockstar Games’ Grand Theft Auto IV have been shipped as of January 31, 2009.
- Rockstar Games announced Red Dead Redemption, a follow-up to the 2004 hit game Red Dead Revolver, which is in development at Rockstar San Diego and planned for a fall 2009 release.
- 2K Play’s wholly owned Carnival Games™ franchise, including Carnival Games for Nintendo’s Wii™ and DS™, and Carnival Games™ MiniGolf for Wii, has shipped over four million units worldwide.
“Take-Two led off fiscal 2009 with somewhat better than expected performance. Our sales reflected the continued strength and diversity of our portfolio of top franchises, including Grand Theft Auto IV, Carnival Games, NBA 2K9 and Midnight Club: Los Angeles. Looking to the balance of the year, the economy remains challenging and uncertain, and our industry will not be immune to this environment. Consumers will continue to be highly selective in their purchases, including interactive entertainment. We need to deliver innovative, exceptionally compelling products to compete for this more limited consumer spending, and we are confident in our ability to do so," said Strauss Zelnick, Chairman of Take-Two.
Ben Feder, Chief Executive Officer of Take-Two, commented, "We believe that in this economic environment, publishers that can offer both quality and value will attract the broadest audience of consumers. We believe Take-Two is solidly positioned on both fronts, with our world-class studios creating triple-A titles and Jack of All Games’ expertise in distributing value products. We will continue to focus on our competitive strengths in both of these areas, while also investing in promising emerging markets, and leveraging our leading edge software development tools and technologies. We recognize the challenges of balancing efficiency with creativity, and our team believes that we can manage the business effectively without sacrificing our renowned standards for excellence.”
Take-Two's lineup announced to date for the remainder of fiscal 2009 includes the following titles:
- Beaterator (TBA)
- BioShock 2 (TBA)
- Borderlands Xbox 360, PS3, PC)
- Don King Boxing (Wii, DS)
- Grand Theft Auto: Chinatown Wars (NDS)
- Grand Theft Auto IV Second Episode (Xbox 360)
- Mafia II (Xbox 360, PS3, PC)
- Major League Baseball 2K9 (PSP)
- Midnight Club: Los Angeles (DLC )
- Content – South Central Premium Upgrade (Xbox 360, PS3)
- NBA 2K10 (Multiple platforms)
- NHL 2K10 (Multiple platforms)
- Red Dead Redemption (Xbox 360, PS3)
- The BIGS 2 (Multiple platforms)