Take-Two today released its financial results for its fiscal first quarter of 2025, covering the three months ended June 30, with bookings up marginally but losses deepening.
Figures for the first quarter of the fiscal year
- Net income: $1.34 billion (up 4% year-over-year)
- Net loss: $262 million (compared to a loss of $206 million in the same quarter last year)
- Total net reserves: $1.22 billion (up 1% year-over-year)
Highlights:
In the financial quarter ended June 30, Take-Two reported modest growth in bookings and revenue but saw losses widen, primarily due to the ongoing amortization of acquired intangibles related to the company's acquisition of Zynga.
The firm continues to focus on what's to come, with references to 2025's Grand Theft Auto 6, as well as detailing that it will release 24 games over the next two fiscal years. This is made up of 15 “immersive core releases” (including six sports titles), one standalone game, five mobile releases, and three new iterations of older games.
The company reiterated its full-year revenue guidance of $5.55 billion to $5.65 billion, but expects a larger GAAP loss. And CEO Strauss Zelnick has told GamesIndustry.biz that he expects “sequential growth in FY26 and FY27.”
“The year has started well,” he said. “The first quarter was in line with expectations, with forecasts, with consensus, and we have reiterated our forecasts.”
In the quarter, the firm continued to show growth in the digital space, with 83% of its revenue coming from what it calls “recurring consumer spending” (areas like DLC and microtransactions). Overall, digital accounted for 97% of its total bookings (up 2%), while 82% of console game sales were digital (up from 80% during the same period last year).
The usual candidates fueled Take-Two's growth, including NBA 2K24, Grand Theft Auto Online, Grand Theft Auto 5, Toon Blast, Empires & Puzzles, Match Factory, Red Dead Redemption 2, Red Dead Online, Words with Friends, and Merge Dragons .
Zynga has seen success with Match Factory, which grew 50% in terms of bookings over the past quarter, while Toon Blast also continued to grow over the past year, the company says. However, there were some declines in the company's hypercasual mobile titles and Empires and Puzzles.
For Rockstar, Grand Theft Auto Online fell compared to the previous year, but beat Take-Two's projections. Meanwhile, the GTA+ subscription service saw strong double-digit growth over the previous year, driven by the inclusion of classic Rockstar games such as LA Noire, the firm says.
Red Dead Redemption 2 has already surpassed 65 million shipments
For the 2K label, NBA 2K24 has already sold nearly 11 million units, which is a decrease from the 13 million sold last year. Take-Two boss Strauss Zelnick remains confident that the game's overall performance will be “practically similar” to that of NBA 2K23.
“There were a lot of differences from year to year,” he says. “There's no question that NBA 2K's overall sales were down. Gen 9 platforms were up. Now, those hurdles will be gone before this year's launch.”
The firm says WWE 2K25 has “improved its profitability” through in-game updates and highlighted critical praise for its new release TopSpin 2K25, though it did not share details of its commercial performance.
The company has also shortened the release window for its upcoming strategy game Civilization VII, which will launch before the end of the financial year in March 2025.