Take-Two Interactive is rolling with the punches, reporting they continue to stem five years of losses with remarkable cash flow, which has made the company consistently outperform the S&P 500.
This quarter, the company earned $ 142 million in net revenue, compared to $ 226 million in the same period last year. Subsequently, net losses are at $ 61 million, down from 110 million last year. Part of this loss stems from development of an undisclosed 2K Sports game totalling $ 30 million.
Sales of Bioshock Infinite, Borderlands 2, NBA 2K13 and GTA IV were the biggest contributors to revenue in this quarter. CEO Strauss Zelnick has revealed in a separate press release that Bioshock Infinite sales have gone past 4 million units. GTA, Borderlands and Red Dead Redemption sold well in stores, while digital sales' biggest contributors were Bioshock, Borderlands, GTA and NBA.
Subsequently, the company has raised expectations for future sales. They expect 2nd quarter revenue to range between $ 750 to $ 800 million, and financial year 2014 to be between $ 1.775 to $ 1.875 billion.
Take-Two Interactive has the rare distinction of being invested in by hedge fund manager Carl Icahn. While other managers scoff at Take-Two's continuing losses, Icahn has demonstrably made money in his investment in the company, and Take-Two itself is held up as an exemplar of the billionaire's investing philosophy.
If that last paragraph flew by you, the company has a curious, if dubious, distinction of losing money in comparison to previous years, but still making a lot of money, enough to make shareholders money. It is expected that the next generation of consoles will help it regain all of its former glory.
Image is from Borderlands 2.
Source: Take-Two Interactive
