Red Dead propels 2K financial results
Sales almost quadruple compared to Q3 2009 numbers; investors pleased as guidance is raised
Red Dead Redemption has helped publisher Take-Two Interactive to a set of stronger-than-expected third quarter financial results, with net revenue jumping by over 270 per cent from $94.9 million to $354.1 million in the three months ending July 31.
The Rockstar-developed Western title has now sold almost 7 million units worldwide since its release in May this year, while catalogue sales of GTA titles, NBA 2K10 and Borderlands also contributed.
After costs that translated to a net profit of $6 million, compared to a loss last year of $56 million, causing the company to raise its guidance for the fourth quarter and full year results.
Expanding the picture to the first nine months of the year, the business is still facing a net loss overall of $11 million from revenues of $785 million - but those numbers compare well to last year as all, when losses were $116 million and sales just $418 million.
Full year sales are now expected to sit between $1.05 and $1.1 billion (from $880-980 million), with Bioshock 2, Mafia II and NHL 2K11 all releasing in the company's fourth quarter.
"Our strategic focus on producing a select number of high quality titles, diversifying our product portfolio, and capitalising on new revenue opportunities has enabled Take-Two to deliver significant growth and profitability in the third quarter and positioned the company for a strong finish to the fiscal year," said chairman Strauss Zelnick of the results.
"At a time when the interactive entertainment industry has continued to feel the impact of an uncertain economy, the exceptional response to Red Dead Redemption shows the value of compelling content and its power to capture consumer interest.
"These results clearly demonstrate the Company's capacity to translate its world-class creative resources into meaningful financial performance and a solid competitive position in our industry."
Take-Two's share price closed up 3.4 per cent yesterday ahead of the results being released, but jumped a massive 13.5 per cent in after hours trading to sit at $10.05.
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