T2 Q2 ’12: Sales up 83%, XCOM delayed into FY13

By Stephany Nunneley
8 November 2011 21:16 GMT

Take-Two has reported better-than-expected results for Q2 FY12 by reporting net revenue of $107 million, compared to $245 million yoy with the strongest contributors led by the Grand Theft Auto franchise, Red Dead Redemption, Borderlands, Sid Meier’s Civilization V, Midnight Club Los Angeles, and NBA 2K11.

Net losses came in at $47.3 million.

New title sales were led by L.A. Noire, MLB 2K11, and Nicktoons MLB. Digitally delivered content accounted for 25% of net revenue, driven by offerings for the Grand Theft Auto franchise, Borderlands, Red Dead Redemption and the Sid Meier’s Civilization franchise. The firm plans to continue growing its digital offering with continued focus and has extensive online and social offerings in the works.

Catalog sales during the quarter were 83% which includes digital offerings as well. The NBA 2K title is seeing a bit of an impact due to the NBA lock out, but the firm is pleased with the game’s metrics.

For the six-month period ended September 30, 2011, net revenue was $441.4 million, as compared to $620.4 million for the year-ago period. Losses were near the $55.9 million compared to the prior year’s $35.4 million.

This was the eighth month in a row, T2 met or exceeded its financial outlook, and the firm expects FY13 to be the “best year ever” according to Strauss Zelnick chairman and CEO of Take-Two

“Our second quarter results exceeded expectations, driven by strong demand for the Company’s catalog offerings and digitally delivered add-on content that deepens the consumer experience,” said Zelnick. “The second half of the year is off to a solid start with the launch of NBA 2K12, which received the highest ratings in the history of our industry-leading basketball series. We expect to build upon this momentum through the balance of this year with groundbreaking new releases from our portfolio of hit franchises, including Max Payne 3 from Rockstar Games and The Darkness II from 2K Games, and a broad array of other offerings that promise to delight audiences worldwide – whether at home or on the go.

“Looking ahead, Take-Two has the strongest development pipeline in the Company’s history. At the cornerstone of our stellar lineup is the recently announced next installment of Rockstar Games’ iconic franchise that has sold-in more than 114 million units – Grand Theft Auto V. The creative team at Rockstar Games continues to set benchmarks for excellence with every new release and we’re confident that consumers’ enthusiasm will be rewarded with a breathtaking entertainment experience that can only be provided by Grand Theft Auto.

“With our diverse lineup of industry-leading franchises and focus on operational excellence, we continue to expect fiscal 2012 to be another profitable year for Take-Two.”

According to the firm’s report, North American consumers made up 52% of the geographic revenue mix for the first-half of the fiscal year, and international revenue made up 48%.

For the same period, titles on Xbox 360 made up 47% of revenue, and PS3 offerings made up 38%. PC made up only 9%, but that figure rose to 14% when Q2 figures were considered.

A financial call to investors is expected to go off at any moment. We’ll update this post with any information of note.

Karl Slatoff executive VP of Take-Two reiterated The Darkness II fore February, MLB 2K 12 in March, and Max Payne 3 rounding out Q4 with its single-player and “addictive” multiplayer. Spec Ops the Line, XCOM, and Infinite are also still on slate for next year, according to Slatoff, but XCOM will likely ship sometime in between the start of FY13 on April 1, and it’s end on March 31, 2013.

The title was originally slated for a March 2012 release, but it looks like Max Payne 3 may have had something to do with the delay, although that is strictly our guess, and was not uttered in the slightest or even hinted at by Take-Two.

The only thing of note mentioned regarding GTA in the call was that it was indeed in development, and there were no ulterior motives to the timing of the game’s announcement.

“GTA V is in full development, and takes the player in a bold new direction in its pursuit of the almighty dollar – the largest and most ambitious game Rockstar has ever created,” said Zelnick.

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