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

By Reuters News


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

Metric

Beat/Miss

Actual

Consensus Estimate

Q2 Revenue

Miss

$1.50 bln

$1.58 bln (21 Analysts)

Q2 Loss Per Share

$0.29

Q2 Net Loss

$54 mln


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


Reuters Recommended Reads

  • Nov 9 - Online gaming platform Sohu.com Q3 revenue drops on high base effect

  • Nov 9 - Tech set to still sway US stock market's course despite AI-driven swoon


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(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.)

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