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Take-Two reports heavy losses in Q2

Publisher reports decreased revenue, increased losses for its second fiscal quarter

Take-Two Interactive has announced its financial results for its second fiscal quarter of 2009, reporting decreased revenue and USD 10.1 million in net loss.

Net revenue was reported at USD 229.7 million, down from USD 539.8 million in the same period last year. Net loss was reported at USD 10.1 million, compared to a gain of USD 98.2 million in the second quarter 2008.

The publisher's loss was less than it expected, which the company attributes to a more efficient operating structure and a balanced software portfolio.

"Recognising that this remains a challenging environment for our industry and the consumer marketplace generally, we are sharply focused on executing our business plan and working to enhance shareholder value," said Take-Two chairman Strauss Zelnick.

Take-Two's drop in revenue is due mainly to challenging year-over-year comps; during the second quarter of 2008, the publisher released Grand Theft Auto IV, a title that it - and indeed, the entire games industry - could not compete with this year.

The publisher also noted that its USD 10.1 million net loss included USD 5.3 million in stock-based compensation expense and USD 1.8 million in "professional fees and expenses related to unusual matters."

Numbers for the six-month half were also published; net revenues were reported at USD 486.5 million, compared to USD 780.3 million in the first half of 2008. Net loss for the first six months was USD 60.5 million, compared to net gains of USD 60.2 million in 2008.

Looking to the future, the publisher has reduced its revenue expectations, due primarily to the delay of two key titles - Mafia II and Red Read Redemption - to fiscal 2010. Take-Two is projecting revenue between USD 145 and 165 million for Q3, and USD 420 to 500 million for Q4.

"Take-Two's expected results for the remainder of this fiscal year reflect a high quality release schedule that is diversified by franchise, genre and platform, with the heaviest volume of releases scheduled for the fourth quarter," said Take-Two CEO Ben Feder.

"We are well positioned for the future, in an industry with an expanding consumer base and exciting growth opportunities, through our focus on producing a select offering of interactive entertainment titles that are among the most compelling in the market."

Take-Two's release schedule for the remainder of 2009 includes Birthday Party Bash (Wii), The BIGS 2 (multiple platforms), Beaterator (platforms TBA), Bioshock 2 (platforms TBA), Grand Theft Auto: Episodes from Liberty City (Xbox 360), Grand Theft Auto: The Ballad of Gay Tony (Xbox Live), NBA 2K10 (multiple platforms), NHL 2K10 (multiple platforms), and finally, Ringling Bros. and Barnum & Bailey Circus (Wii, DS).

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