Video game publisher Take-Two's Q2 revenue misses on decline in net bookings

Overview

• US video game publisher's fiscal Q2 revenue fell and missed analyst expectations

• Fiscal Q2 net bookings declined 18% year-over-year

• Company reiterated full-year net bookings outlook ahead of Grand Theft Auto VI launch

Outlook

• Take-Two expects fiscal 2027 Net Bookings of $8.0 bln to $8.2 bln

• Company sees fiscal 2027 diluted EPS of $0.57 to $0.75

• Take-Two expects Q3 Net Bookings of $3.35 bln to $3.5 bln

Result Drivers

• RECURRENT SPENDING DECLINE - Co said recurrent consumer spending fell 9% and made up 81% of total net bookings

• KEY FRANCHISE CONTRIBUTIONS - NBA 2K, Grand Theft Auto series, and mobile titles were main contributors to net bookings

• MOBILE AND CONSOLE WEAKNESS - Revenue from mobile and console platforms declined compared to prior year

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 32 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the software peer group is "buy"

• Wall Street's median 12-month price target for Take-Two Interactive Software, Inc. is $285.00, about 32.6% above its November 6 closing price of $214.87

• The stock recently traded at 24 times the next 12-month earnings vs. a P/E of 31 three months ago

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)