Take-Two Interactive Software has seen huge growth for its third fiscal quarter ended December 31 and a big part of that was down to digital.
GAAP net revenue stood at $531.1 million, compared to $1.86 billion for the same period last year. GAAP net income was $40.1 million compared to $578.4 million for the same period last year. Take-Two chose to explain the reasons for that decline:
"GAAP net revenue and net income declined year-over-year in fiscal third quarter 2015 because GAAP results for fiscal third quarter 2014 included net revenue and cost of goods sold related to sell-in of the GTA V game during both fiscal second quarter and fiscal third quarter 2014, as Grand Theft Auto Online launched during fiscal third quarter 2014. In addition, GAAP results for fiscal third quarter 2015 reflect the deferral of net revenue and cost of goods sold related to sell-in of GTA V during the quarter."
On a non-GAAP basis net revenue grew to $954.0 million, up from the $767.7 million for Q3 last year. Non-GAAP net income grew to $211.6 million from $210.7 million last year.
As of December 31 Take-Two's cash and short-term investments balance increased to $976.6 million.
Take-Two highlighted that Non-GAAP net revenue from digital content grew 64 per cent year-on-year to $217.2 million and virtual currency, DLC and online games rose 23 per cent on last year and made up 36 per cent of Non-GAAP net revenue from digital content.
GTA V was, unsurprisingly, the jewel in the crown with 45 million units sold-in on console, with 10 million units on PlayStation 4 and Xbox One. It's worth remembering that 10 million is since November 18 and that number is only going to grow when the much anticipated PC release launches next month.
"Take-Two's positive momentum was demonstrated once again, as we delivered exceedingly strong third quarter revenues and profits, and finished the quarter with nearly $1 billion in cash and short term investments," said CEO Strauss Zelnick.
"We also generated substantial growth in digitally-delivered revenue, including through our ongoing focus on offerings that drive recurrent consumer spending. As a result of Take-Two's outstanding holiday season performance, we are raising the Company's financial outlook for the full year.
"Looking ahead, we expect that our fourth quarter will provide a strong finish to fiscal 2015, which is lining up to be one of Take-Two's best years ever. Anchored by the eagerly-anticipated launches of Evolve and Grand Theft Auto V for PC, along with an array of other offerings, we will continue to deliver titles that captivate audiences around the world and set benchmarks for excellence."