Take-Two Interactive: Financial highlights for the first quarter of fiscal year 2023

Take-Two Interactive presents financial highlights for the first quarter of fiscal year 2023.

Take-Two Interactive reported financial highlights for the first quarter of fiscal year 2023 in a financial report. So it’s above expectations. In addition, the company revised its outlook for fiscal year 2023, ending March 31, 2023, to reflect the combination with Zynga.

“Prior to the merger, our net bookings were approximately $731 million and our operating results exceeded our expectations as we launched exciting new games and content updates while taking into account various macroeconomic and geopolitical factors.”

Specifically, it states as follows: GAAP net sales increased 36% to $1.1 billion, compared to $813.3 million in the first quarter of last year.

Recurring consumer spend (which results from continued consumer engagement and includes virtual currency, add-on content, in-game purchases, and in-game advertising) increased 44% and accounted for 75% of total GAAP net revenue.

Digital GAAP net revenue increased 40% to $1.0 billion compared to $740.8 million in last year’s first quarter and accounted for 94% of total GAAP net revenue.

The largest contributors to GAAP net sales were NBA 2K22, Grand Theft Auto Online and Grand Theft Auto V, Red Dead Redemption 2 and Red Dead Online, Empires & Puzzles, Tiny Tina’s Wonderlands, WWE 2K22, Rollic’s hyper-casual portfolio, Toon Blast, The Quarry and Top Eleven.

Management Comments: “Our fiscal 2023 got off to a strong start, as evidenced by our net bookings of $1 billion in the first quarter,” said Strauss Zelnick, chairman and CEO of Take-Two. “Prior to the merger, our net bookings were approximately $731 million and our operating results exceeded our expectations as we launched exciting new games and content updates while simultaneously managing various macroeconomic and geopolitical factors. “

“We remain extremely optimistic about the long-term growth potential of the wireless industry and our ability to create greater shareholder value as a combined company with Zynga. Our creative teams are actively discussing potential new projects, and we remain committed to achieving over $500 million in annual net booking volume over time. At the same time, we continue to believe that we can achieve approximately $100 million in annual cost synergies within the first two years post-merger, with the potential for further improvements.

“For fiscal 2023, we now expect net sales to be between $5.8 billion and $5.9 billion, including the combination with Zynga. Our pipeline for the year continues to look very strong and we look forward to significantly expanding our mobile footprint with a best-in-class platform. Our new guidance takes into account some shifts in our release schedule for the year, foreign currency pressures, and macroeconomic and geopolitical uncertainties. Looking ahead, our long-term vision is clearer than ever, and we believe that by joining forces with Zynga we will be better placed to capitalize on the evolving dynamics of the interactive entertainment industry. As we deliver our large, diverse pipeline and pursue the tremendous opportunities we have identified through our merger with Zynga, we see a way to reach an even larger audience around the world, expand our scale, and improve our margins. ”