Posted in: Games, Games Finance, Video Games | Tagged: End of Year Report, Games Finance, Q4 2016, red dead redemption 2, Take-Two Interactive

Take-Two Interactive Did Pretty Well In 2017 Thanks To Mafia III And GTAV

Published Tue, 23 May 2017 17:45:37 -0500

by Madeline Ricchiuto

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Publisher Take-Two Interactive released their fourth quarter and end of year 2017 earnings report today. Despite the delay in Red Dead Redemption 2 until spring of 2018, the company did very well during the fiscal year of 2017 which ended for Take-Two on March 31, 2017. We didn't expect that the Red Dead Redemption delay would have effected their earnings, as the delay only came through yesterday and the game wasn't slated to hit until their 2018 fiscal year anyhow. Still, it is heartening to see the company doing well despite the setback.

The publisher ended with a nice net revenue of $1.78 billion, which was up a promising 26% from last year. This massive upswing in their finances is down to the continued success of Grand Theft Auto V and Grand Theft Auto Online which has been a key highlight of Take-Two's financial reports for the past four years.

Much as I might normally say that kind of praise is just some nice spin for the investors, it is actually the truth. Somehow, 2013's GTA V is still killing it four years after launch to the point where it has beat out almost all of Take-Two's other franchises – including those that actually had releases in fiscal year 2017. That's a bit insane to think about, given the relative short-term shelf-life of most video games. And even more insane, GTA V is one of the top-selling games of 2017. That game just isn't going to die anytime soon.

However, top honors this year went to Mafia III which is kind of nice to see. They also gave a decent amount of credit to NBA 2K17, WWE 2K17, and Sid Meier's Civilization VI. All of which amounted to "a diverse array of exciting titles from 2K, and record digitally-delivered revenue and Bookings, including our highest-ever from recurrent consumer spending."

Further on in the report, Take-Two detailed their plans for the next fiscal year.

Mafia III's Stones Unturned DLC on May 30th.
Mafia III's second DLC, Sign of the Times later this summer.
NBA 2K18 on September 19, 2017.
WWE 2K18 which is slated for some time in the fall of 2017.
Red Dead Redemption 2 in the Spring of 2018.

And despite their admittedly slim release slate, Take-Two expects fiscal 2018 to continue their upward trend. "That said, we still expect fiscal 2018 to be a year of strong earnings and cash provided by operating activities for Take-Two, despite an unusually light release slate, driven by new releases of NBA 2K and WWE 2K, our robust catalog led by Grand Theft Auto, and innovative offerings designed to drive engagement and recurrent consumer spending. Looking ahead to fiscal 2019, we expect to deliver both record Net Sales and record net cash provided by operating activities, in excess of $2.5 billion and $700 million, respectively, led by the launches of Rockstar Games' Red Dead Redemption 2 and a highly anticipated new title from one of 2K's biggest franchises."

You can find the full report here.

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