Take-Two Interactive reported strong results for the first quarter of its fiscal year. The firm saw its net revenue increase by 36 per cent to $1.1 billion, compared to $813.3 million during last year’s fiscal first quarter.
According to the report, recurrent consumer spending (which is generated from ongoing consumer engagement and includes virtual currency, add-on content, in-game purchases, and in-game advertising) increased by 44 per cent and accounted for 75 per cent of total net revenue. Digitally-delivered net revenue increased by 40 per cent to $1.0 billion, as compared to $740.8 million in last year’s fiscal first quarter, and accounted for 94 per cent of total net revenue.
The largest contributors to Take-Two’s net revenue were NBA 2K22, Grand Theft Auto Online and Grand Theft Auto V, Red Dead Redemption 2 and Red Dead Online, Empires & PuzzlesTM, Tiny Tina's Wonderlands, WWE 2K22, Rollic's Hyper-casual Portfolio, Toon BlastTM, The Quarry and Top Eleven.
According to Strauss Zelnick, Take-Two’s chairman and chief executive officer, the firm is exceedingly optimistic about the potential long-term growth for the mobile industry, as well as its ability to create greater shareholder value as a combined entity. Over the past few months, Take-Two has made significant progress in its integration efforts.
Some key highlights of Take-Two's mobile offerings during the quarter included:
- Harry Potter: Puzzles & Spells featured an in-game event to celebrate the cinematic release of Fantastic Beasts: The Secrets of Dumbledore.
- Empires & Puzzles introduced the game's fifth season, Dynasty of Dunes.
- Zynga Poker released the Omaha update, giving players a new way to enjoy the popular game.
- Words With Friends introduced Clubs, a new feature that expands the game's social experience by offering shared spaces that players can enjoy together.
"We had a great start to the year and we believe that our combination with Zynga will enhance our positioning as one of the top interactive entertainment companies in the world. As our teams continue to leverage the core competencies from Zynga’s publishing platform, we believe that we will be able to engage our player base more deeply, add new dimensions to our existing portfolio and deliver significant long-term growth and margin expansion for our shareholders," said Take-Two chief financial officer, Lainie Goldstein.
It was only in January when Take-Two acquired Zynga for $12.7 billion, and it would seem the transaction is working in favour of both companies. This acquisition went down in history as one of the ten biggest video game acquisitions of all time. Zygna have ranked in our Top 50 Mobile Game Makers awards many times over the years, ranking at position 8 in 2021.
