Take Two reports record revenue, but loses money, shares fall

[Sullla]

FishyJoe said:

Net revenues were a record $1,537.5 million for the fiscal year ended October 31, 2008, compared to $981.8 million in fiscal 2007. Net income for fiscal 2008 was a record $97.1 million or $1.28 per share, compared to a net loss of $138.4 million or $1.93 per share in fiscal 2007.

This seemed like the key paragraph to me. How can you have revenue increase $600m year on year (up 60%), and yet barely be in the black for the current fiscal year?! Sign of a mismanaged company.

Just shaking my head here.  I knew it was a bad sign when last quarter (the GTA release quarter) only managed to turn a $100m profit for Take-Two. Six months later, they're already losing money again. And look at that release schedule! All PS360, practically nothing on the inexpensive platforms. I can't see Take-Two staying around for too much longer with such an unsustainable business model.

Shares are trading at $12 right now. Bet they wish they'd taken EA's $27 share buyout earlier, eh? Although I think EA is extremely glad that Take-Two turned them down! Another unprofitable developer is the LAST thing they need right now.