NEW YORK - Take-Two (NASDAQ:TTWO) Interactive Software, Inc. reported its fourth-quarter earnings, revealing a mixed performance with net bookings slightly exceeding analyst expectations but with an adjusted earnings per share (EPS) that beat estimates.
In the commentary, the company narrowed the launch window for the highly anticipated Grand Theft Auto VI to Fall of Calendar 2025.
As a result, the TTWO stock fell 4.2% in afterhours trade.
For the fourth quarter, the company posted net bookings of $1.35 billion, a 2.9% decrease year-over-year (YoY), but ahead of the $1.31 billion analyst consensus. Digital Online net bookings were down 4.2% YoY, while Physical Retail and Other net bookings saw a 27% increase YoY.
The adjusted EPS was reported at 28 cents, significantly surpassing the 7.1 cents estimate. Adjusted EBITDA also beat expectations at $110.2 million compared to the predicted $91.1 million.
However, the company's outlook for 2025 dampened investor sentiment. Take-Two expects net bookings to range between $5.55 billion and $5.65 billion, notably below the analyst consensus of $6.92 billion. The midpoint of this guidance, $5.60 billion, is well under the consensus.
The forecast for adjusted EPS is between $2.34 and $2.59, which is less than half of the expected $5.86. Adjusted EBITDA guidance is set at $746 million to $800 million, also below the $1.23 billion consensus.
For the first quarter, Take-Two anticipates net bookings between $1.20 billion and $1.25 billion, which is slightly below the $1.26 billion estimate. The company projects an adjusted loss per share of 5 cents to an EPS of 5 cents, compared to the consensus estimate of an EPS of 45 cents.
Adjusted EBITDA is forecasted to be between $49 million and $70 million, falling short of the $129.1 million analyst estimate.
The company's GAAP results included significant impairment charges and business reorganization expenses, which contributed to an operating loss of $2.71 billion, a stark increase from the $702.4 million loss YoY.
These figures reflect the costs associated with goodwill, acquisition-related intangible assets, and cost-reduction programs.
Take-Two's CEO stated, "While our results reflect the challenging dynamics of the market, we are confident in our strategy and the steps we are taking to position the company for long-term success."
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