Take-Two Interactive Software, Inc: Analytical Review of Q1FY25

Take-Two Interactive Software, Inc., founded in 1993 and incorporated in Delaware, is a prominent player in the interactive entertainment industry. The company operates globally as a developer, publisher, and marketer, offering products across console systems, PCs, and mobile devices. Its diverse portfolio includes notable brands and studios such as Rockstar Games, 2K, Private Division, and Zynga.

Stock Performance

Take-Two Interactive’s shares are traded on Nasdaq under the ticker symbol TTWO. As of June 30, 2024, the company had 175,200,000 shares outstanding. During the first quarter of FY25, the stock price fluctuated between 138.93 USD and 168.68 USD. The opening price on April 1, 2024, was 148.69 USD, and the closing price on June 28, 2024, was 155.49 USD. Notably, the company has never declared or paid cash dividends.

On June 11, 2024, Take-Two completed the acquisition of The Gearbox Entertainment Company, Inc., purchasing 100% of its shares for 440.7 million USD. This strategic move expands Take-Two’s portfolio and market presence.

Q1FY25 Financial Performance

• Revenue: Total revenue for Q1FY25 was 1,338.2 million USD, marking a 4.37% decrease from Q4FY24’s revenue of 1,399.4 million USD, but a 4.16% increase compared to Q1FY24’s revenue of 1,284.7 million USD.
• Sales by Platforms:
  • Mobile: 53.99%, totaling 722.5 million USD
  • Console: 38.03%, totaling 508.9 million USD
  • PC and Other: 7.98%, totaling 106.8 million USD
• Sales by Region:
  • United States: 61.31%, totaling 820.5 million USD
  • International: 38.69%, totaling 517.7 million USD

Equity and Liabilities

• Total Equity: As of June 30, 2024, Take-Two’s total equity was 5,991.5 million USD, reflecting a 5.71% increase from the 5,667.9 million USD reported as of March 31, 2023. However, this is a 32.98% decrease compared to 8,940.2 million USD as of June 30, 2023.
• Total Liabilities: The company’s total liabilities were 6,953.1 million USD as of June 30, 2024, which represents a 6.17% increase from 6,549.0 million USD as of March 31, 2024, and a 5.59% increase from 6,585.1 million USD as of June 30, 2023.

Product Releases

In Q1FY25, Take-Two’s subsidiaries released several notable titles:

• 2K: “TopSpin 2K25”
• Private Division: “No Rest for the Wicked” (early access on PC)
• Zynga: “Star Wars: Hunters” and “Game of Thrones: Legends RPG”

Take-Two Interactive Software, Inc. continues to be a major force in the interactive entertainment sector, with significant developments in its financial performance and strategic acquisitions. The company’s diversified portfolio and recent investments highlight its ongoing commitment to growth and market expansion.