Take-Two Interactive has generated over $2 billion from mobile in the first nine months of its financial year, with in-app purchase revenue exceeding the company’s expectations for hypercasual at the tail-end of 2023.
However, despite better results on mobile than initially foreseen, net bookings and GAAP net revenues were down compared to last year’s Q3, and the company has consequently reduced its outlook for the financial year as a whole.
Its successes, though, can be largely attributed to mobile developer Zynga, acquired by Take-Two in 2022. In fact, after its Q3 2024 performance - covering the period up to December 31 2023 - the video game holding company predicts Zynga will account for 51% of its full-year net bookings, while 2K will represent 30% and Rockstar Games only 19%.
Zynga’s majority contribution clearly shows how lucrative mobile gaming can be, with recent additions to Take-Two’s catalogue like merge RPG Top Troops and 3D puzzler Match Factory! already proving successful.
Overall, mobile generated over half of all revenue by platforms in the quarter at $707 million, while console gaming made $548 million. "PC and other" only earned Take-Two $112 million.
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While the third quarter exceeded expectations on mobile, it wasn’t so successful overall. $1.34 billion in net bookings was a slight decrease compared to Q3 2023’s $1.38 billion, and the net bookings attributed to recurrent consumer spending decreased too, from 82% to 75% of overall bookings. GAAP net revenue fell from $1.41 billion to $1.37 billion.
International revenue did rise, at least, from $521 million in Q3 2023 to $548 million in Q3 2024. US revenue, on the other hand, fell from $887 million to $818 million.
Grand Theft Auto: The Trilogy - The Definitive Edition was credited as one of the largest contributors to the quarter’s GAAP net revenue, having released on mobile via Netflix in the quarter. But lacklustre advertising around NBA 2K24 is thought to have held the overall figure back.
"We achieved solid third quarter results, including Net Bookings of $1.3 billion. Grand Theft Auto V and Grand Theft Auto Online, the Red Dead Redemption series, and Zynga’s in-app purchases, led by Toon Blast, exceeded our expectations, as we launched engaging new content, partnerships, and activations," said Take-Two chairman and CEO Strauss Zelnick.
"This was partially offset by some softness in mobile advertising and sales for NBA 2K24. We are reducing our outlook for the year to reflect these factors, as well as a planned release moving out of the fourth quarter, and increased marketing for Zynga’s new hit mobile game, Match Factory!
"Our revised Net Bookings forecast is $5.25 to $5.3 billion. Our strategy is anchored in creativity, innovation, and efficiency."
Of the upcoming games, Take-Two has revealed two mobile titles based on massive global IP: namely Star Wars Hunters and Game of Thrones: Legends.
