Take-Two Interactive Revenues Soar Amid Pandemic-Spurred Gaming Boom

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Take-Two Interactive CEO Strauss Zelnick

CEO Strauss Zelnick lauded the "significantly better-than-expected fourth quarter results," while warning investors that "fiscal 2021 will be a light new release year."

Take-Two Interactive, the game studio behind the NBA 2K, Grand Theft Auto and Red Dead Redemption properties, on Wednesday reported significant growth in revenue in profits in its fiscal fourth quarter. Earnings were spurred by a gaming boom brought on by the novel coronavirus pandemic, which forced people around the world to spend more time at home.

In its fourth quarter, which ended March 31, Take-Two saw revenue grow by 41 percent year-over-year to $760.5 million. Net income totaled $122.7 million, up 116 percent from a year ago.

The company's fiscal year 2020 revenue grew 16 percent to $3.089 billion, as compared to $2.668 billion in fiscal 2019. Net income increased 21 percent to $404.5 million, or $3.54 per diluted share, as compared to $333.8 million, or $2.90 per diluted share, in fiscal  2019.

The growth was driven by Take-Two's NBA 2K games and Grand Theft Auto Online. "With more people staying at home, we have experienced, and are continuing to experience, heightened levels of engagement and Net Bookings growth-to-date," the company told investors in its quarterly report.

In a statement, Take-Two CEO Strauss Zelnick lauded the "significantly better-than-expected fourth quarter results," while warning investors that "fiscal 2021 will be a light new release year." 

He added, "We have an array of titles that we will begin to launch in fiscal 2022, which we expect to drive sequential growth that year. Our company remains superbly positioned — creatively, operationally and financially — to capitalize on the many positive trends in our industry, and to deliver continued growth and returns for our shareholders over the long-term."

Take-Two expects to deliver all the titles currently on its release calendar on-time, despite nearly all employees working from home.