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Forums - Sales Discussion - Take Two reports record revenue, but loses money, shares fall

Slimebeast on 17 December 2008
Oyvoyvoyv said:
Slimebeast said:
FishyJoe said:
So if I've calculated correctly, they made a total of $97 million profit for the fiscal year. That's pretty pathetic in a year when GTAIV is released. How this company is going to make any money at all in 2009 is a mystery to me.

 

 It's pathetic, but then Take-Two has been infamous as money losing publisher for years despite it's high-profile franchises, hasn't it?

Actually if u assume GTA4 shipped rufly 10 million copies in Fiscal 2008, and let's say each copy made $10 net profit, the profit from GTA4 rufly equals those $97 million. That means that the rest of Take-Two at least didn't lose money, like they did in the past.

I believe they get closer to 30 dollars (but not fully that much).

 

 

 I believe that's a myth. Anyway, with $10 per copy I was exluding the cost of making and marketing the game.

GTA4 calculation rufly:
total revenue: 10 million copies x $20 = $200 million
- cost of development & marketing = $100 million
---------------------------------------------------
= total profit = $100 million (which rufly equals $97 million total profit of Take-Two) = $10 profit per sold copy of GTA4



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Slimebeast on 17 December 2008
NJ5 said:
I'm still trying to come up with a reasonable explanation for $300+ million in expenses... Did they just make 3 GTA games in a single quarter?

 

 Well, wasnt there a news some ½ year ago that Take-Two had 23 games under development?

Bioshock 2, Max Payne 3, Prey 2 etc



Bodhesatva on 17 December 2008

Fishy, can you give me Take2's profit/revenue for each quarter? Without adding them up. Just individual quarters.

I'd appreciate it!



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wakawakawa on 17 December 2008

What is Take 2 doing with their money? With Bioshock, Carnival Games, and GTAIV they should be rolling in cash. They are either mismanaged or corrupt to the core.

Hmmm, they published Oblivion too...

To be living the life of a Take 2 executive. How many hookers is too many?



Kenology on 17 December 2008
FishyJoe said:

Some interesting comments from T2.

http://www.gamasutra.com/php-bin/news_index.php?story=21581

"We believe we'll continue to benefit from the growing install base of the Nintendo Wii," said Feder. "Our relationship with Nintendo has never been stronger," he added, calling it a "great foundation on which to build."

"Even some of the M-rated content that we think is much more appropriate for the [Xbox] 360 or the PS3... we have to look at the Wii as a viable platform, because we can't ignore that install base," Feder said. "We just can't."

As the PS3 fans are (or... well, were) notorious for saying:  It Begins!

 



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Lolcislaw on 17 December 2008

Well HD development costs do hurt Western Developers more and more, and HD consoles do not make as much money as projected. They have to start supporting handhelds and the Wii more.



bigjon on 17 December 2008

the management of these western devs is just terrible. If it werent for Nintendo, we would be seeing a repeat of the early 80's....



End of 2009 Predictions (Set, January 1st 2009)

Wii- 72 million   3rd Year Peak, better slate of releases

360- 37 million   Should trend down slightly after 3rd year peak

PS3- 29 million  Sales should pick up next year, 3rd year peak and price cut

Sullla on 17 December 2008

More interesting stuff from Gamasutra's article on Take-Two (http://www.gamasutra.com/php-bin/news_index.php?story=21536):

Feder also noted that, to drum up capital for its holiday season, the company has borrowed $71 million from a credit facility that it secured last year, and that Take-Two is "fortunate" to have lenders available given the circumstances.

Yeah... so Take-Two had to borrow another $70m just to have enough capital for this current quarter. Honestly, what the hell is wrong with this company?! Are they using hundred dollar bills as toiler paper?

Also from Gamasutra:

[UPDATE: The company's much-reduced outlook for 2009 is disappointing shareholders and analysts, with Reuters noting that Take-Two "...expects profit for the year ending in October 2009 to range between nil and 20 cents per share, significantly missing the average analysts' estimate of $1.21 per share."

First-quarter outlook was also massively reduced from analyst estimates - as a result, Take-Two shares are down almost 20% to $9.90 in after-market trading.]

So Take-Two's stock is worth even less now than when I posted a couple hours ago! It's at its lowest value in almost ten years now...



My Website

End of 2008 totals: Wii 42m, 360 24m, PS3 18.5m (made Jan. 4, 2008)

c0rd on 17 December 2008
Slimebeast said:
Oyvoyvoyv said:
Slimebeast said:
FishyJoe said:
So if I've calculated correctly, they made a total of $97 million profit for the fiscal year. That's pretty pathetic in a year when GTAIV is released. How this company is going to make any money at all in 2009 is a mystery to me.

 It's pathetic, but then Take-Two has been infamous as money losing publisher for years despite it's high-profile franchises, hasn't it?

Actually if u assume GTA4 shipped rufly 10 million copies in Fiscal 2008, and let's say each copy made $10 net profit, the profit from GTA4 rufly equals those $97 million. That means that the rest of Take-Two at least didn't lose money, like they did in the past.

I believe they get closer to 30 dollars (but not fully that much).

 I believe that's a myth. Anyway, with $10 per copy I was exluding the cost of making and marketing the game.

GTA4 calculation rufly:
total revenue: 10 million copies x $20 = $200 million
- cost of development & marketing = $100 million
---------------------------------------------------
= total profit = $100 million (which rufly equals $97 million total profit of Take-Two) = $10 profit per sold copy of GTA4

I noticed you always spell roughly like that, "rufly."

Why do you do that, Mr. Pug?



Seneque on 17 December 2008
Bodhesatva said:

Fishy, can you give me Take2's profit/revenue for each quarter? Without adding them up. Just individual quarters.

I'd appreciate it!

From the Quarterly Results page of Take-Two Investor Site (their reports are super exhaustives).

In thousands :


 Net Income Net Revenue
Q4 2008 (ended 31 Oct. 2008) -14,954$ 323,442$
Q3 2008 (ended 31 July 2008) +51,826$ 433,836$
Q2 2008 (ended 30 April 2008) +98,222$ 539,810$
Q1 2008 (ended 31 Jan. 2008) -37,997$ 240,442$
Q4 2007 (ended 31 Oct. 2007) -7,063$ 292,600$
Q3 2007 (ended 31 July 2007) -58,546$ 206,415$
Q2 2007 (ended 30 April 2007) -51,249$ 205,436$
Q1 2007 (ended 31 Jan. 2007) -21,548$ 277,340$
Q4 2006 (ended 31 Oct. 2006) -14,015$ 266,556$
Q3 2006 (ended 31 July 2006) -91,379$ 241,181$
Q2 2006 (ended 30 April 2006) -50,373$ 265,122$
Q1 2006 (ended 31 Jan. 2006) -29,122$ 264,981$
Q4 2005 (ended 31 Oct. 2005) +18,861$ 306,779$
Q3 2005 (ended 31 July 2005) -28,976$ 169,899$
Q2 2005 (ended 30 April 2005) -8,725$ 222,068$
Q1 2005 (ended 31 Jan. 2005) +54,154$ 502,474$



Fiscal Year 2008 +97,097$ 1,537,530$
Fiscal Year 2007 -138,406$ 981,791$
Fiscal Year 2006 -184,889$ 1,037,840$
Fiscal Year 2005 +35,314$ 1,201,220$
Fiscal Year 2004 +62,119$ 1,127,751$
Fiscal Year 2003 +88,672$ 1,033,693$
Fiscal Year 2002 +59,667$ 794,676$

I recommend the page 49 of their form 10-K 2006 Annual report. There, they list their best selling games as a percentage of net revenue. I didn't check if they did it in the more recent annual reports.