TakeTwo have prominently featured mobile publisher and developer Zynga in their full-year financials for 2022, contributing to net revenue growth of 53% to $5.35 billion.
Alongside heavy hitters such as Grand Theft Auto V, GTA Online and Red Dead Redemption 2, TakeTwo also pointed to their hypercasual mobile portfolio, in particular Zynga’s titles Merge Dragons, Words with Friends and Zynga Poker. The acquisition of Zynga by TakeTwo in 2022 one of the biggest gaming deals of all time, and gave TakeTwo a huge boost in terms of their mobile presence.
Net bookings also grew by 55% to $5.28 billion, with Merge Dragons and Words with Friends also being key drivers. Gross profit meanwhile had increased to $2.2 billion for the full year, with $0.2 billion of that in Q4. Mobile remains the largest section of the revenue stream for the full-year as well, at 47% and $2.5bn.
Chairman and CEO of TakeTwo, Strauss Zelnick stated “We finished fiscal 2023 with momentum. Our fourth quarter Net Bookings were $1.4 billion, above the high end of our guidance range, driven by Grand Theft Auto V and Grand Theft Auto Online, Red Dead Redemption 2, and Zynga’s mobile portfolio.”
Given the size and importance of the Zynga acquisition last year, these financials are indeed interesting to scrutinise. Overall, Zynga has established itself as an important part of TakeTwo’s ongoing success, and it’ll be encouraging for those in the mobile game industry that their important contribution has been borne out in the full-year financials.
The fact that Zynga has helped boost mobile into being the dominant part of TakeTwo’s revenue stream remains important. The change in revenue streams shows just how important mobile gaming is, business-wise, especially when it’s competing against massive console and PC heavyweights like Red Dead Redemption 2 and Grand Theft Auto.
However, with layoffs having taken place recently at Private Division, some will be hopeful that Zynga’s success won’t come at a cost to other parts of TakeTwo.