GTA 6 is poised for release, Take-Two (TTWO.US) financial report is mixed: pre-orders exceed expectations, losses widen

It has been reported by Zhihu Caijing APP that game publisher Take-Two Interactive Software (TTWO.US) reaffirmed its full-year bookings outlook on Friday, and confirmed that the highly anticipated Grand Theft Auto VI will officially launch on November 19, bringing this blockbuster title one step closer to players. In the first fiscal quarter ending June 30 (the quarter that opened pre-orders for Grand Theft Auto VI), the company achieved net bookings of $1.39 billion, slightly above the market expectation of $1.38 billion, although company losses further widened.

According to consensus estimates compiled by the market, Wall Street previously expected the company to report a GAAP loss per share of 21 cents and revenue of $1.36 billion. Take-Two actually recorded a GAAP loss per share of 18 cents and net bookings of $1.39 billion, both outperforming expectations.

Driven by the earnings report, Take-Two’s share price rose slightly in pre-market trading, up 1.26% as of press time.

Take-Two CEO Strauss Zelnick said on Friday's analyst call that Grand Theft Auto VI’s pre-orders had an “exceptionally strong start”—pre-orders were open for only five days during the quarter—but did not disclose specific sales figures.

The total net bookings of $1.39 billion were not broken down by game in the earnings report, but Take-Two noted that this figure mainly reflects “better than expected performance” from the NBA 2K and Grand Theft Auto series, with NBA 2K net bookings growing 7% year-on-year and the Grand Theft Auto series up 3%.

It should be noted that net bookings are a common performance metric in the gaming industry and are recorded at the time of order; Take-Two only recognizes revenue for income actually earned. Final revenue recognized for the quarter was $1.53 billion.

Overall, net bookings decreased 3% from $1.42 billion in the same period last year. The quarterly loss was $34.1 million, compared to a loss of $11.9 million a year ago, marking a widening of losses.

For financial guidance, Take-Two expects fiscal year 2027 (ending March 31, 2027) net bookings between $8 billion and $8.2 billion. According to data compiled by LSEG, analysts on average predict $8.86 billion, representing a 31.9% year-on-year increase.

The company’s bookings guidance for the current quarter is below Wall Street expectations, reflecting business weakness due to a lack of new titles ahead of Grand Theft Auto VI’s release. The company expects second fiscal quarter (ending September 30) net bookings of $1.62–1.67 billion, below analysts’ average expectation of $1.85 billion.

Take-Two opened Grand Theft Auto VI pre-orders on June 25 but did not disclose any data on demand trends in this earnings report. The day before, Take-Two’s Rockstar Games announced the game’s pricing: the Standard Edition will sell for $79.99 (available as a digital or physical version, with the physical package containing a redemption code instead of a disc), and the “Ultimate Edition” will be priced at $99.99, including “exclusive premium vehicles, weapons, outfits, and emotes across the game.”

The market widely expects that, thanks to the series’ robust fan base, Grand Theft Auto VI will generate billions of dollars in revenue for Take-Two within days of launch. Its predecessor, Grand Theft Auto V, has sold nearly 230 million copies since its 2013 release, making it one of the best-selling games of all time.

Another key area of investor focus is the online multiplayer mode of Grand Theft Auto VI. The market generally expects Take-Two to replicate the success of Grand Theft Auto V Online—which has continuously contributed steady revenue to the company and effectively extended the game’s lifecycle, generating incremental revenue through player purchases of virtual currency and other means.