Take-Two Talks Financials
Take-Two held a conference call and sent out a press release detailing their financial results for the previous quarter and nine months ending July 31, 2004. FYI, Take-Two is also the parent company of Rockstar Games, Gathering, and Global-Star Interactive.
We've done our best to summarize, but Take-Two had a lot to say. In a nutshell, they're making plenty of money so you don't need to worry about them. Here are some highlights.
Net sales for the third quarter ended July 31, 2004 were $160.9 million, compared to $152.1 million for last year's third quarter. Net loss for the quarter was $14.4 million, compared to net income of $5.7 million last year.
Net sales for the nine months ended July 31, 2004 were $689.7 million, compared to $756.1 million for the same period a year ago, a period which included significant sales of Grand Theft Auto: Vice City, Midnight Club 2, and Grand Theft Auto: Vice City for PC. Net income of $2.7 million compared to $71.9 million in the comparable period the year before, with diluted net income per share of $0.06 compared to $1.68.
Working capital was approximately $351 million at July 31, 2004, as compared with approximately $296 million at the same time a year ago. The Company had approximately $198 million in cash as of July 31, 2004, as compared to $226 million in cash at July 31, 2003.
Rockstar's new title Red Dead Revolver, released in late April for PlayStation 2 and Xbox, was a significant contributor to third quarter results. Red Dead Revolver was the top-performing product in Take-Two's publishing business this quarter and was a top ten title in the United States in May, June, and July according to NPD Group. Rockstar's Grand Theft Auto: Vice City was released in Japan for the PlayStation 2 and PC in late May, under a license agreement with Capcom Co., Ltd. According to Media Create Co., Ltd., the PlayStation 2 title has sold over 400,000 copies as of the week ended August 29, 2004, making it one of the most successful debuts of a Western video game in Japan.
Global Star launched ESPN NFL 2K5 for both the PlayStation 2 and Xbox in North America at the end of July, the first title released under the co-publishing and exclusive distribution agreement with Sega Corporation for the ESPN Videogames sports titles. Global Star also shipped Army Men: Sarge's War and Dragon Tales.
To streamline Take-Two's publishing operations, the Company is reorganizing its publishing business into two labels: Rockstar Games and Global Star Software. Rockstar will continue to focus on premium priced, groundbreaking entertainment, while Global Star's portfolio will be significantly broadened. In addition to publishing the ESPN Videogames sports line and all value priced titles, Global Star will publish both premium and value priced licensed properties, as well as the products that were formerly under the Company's Gathering label.
Take-Two has an extensive product lineup planned this holiday season, beginning in the fourth quarter. Rockstar will introduce Grand Theft Auto: San Andreas, the next iteration in the globally successful franchise which has sold over 32 million units. Developed by world-class designers Rockstar North, Grand Theft Auto: San Andreas will be available exclusively for the PlayStation 2 and is expected to be in stores in North America on October 26, 2004 and in Europe on October 29, 2004. Rockstar also plans to release an extension of the Grand Theft Auto franchise for the Game Boy Advance in late October.
Global Star's fourth quarter line-up leads with ESPN NHL 2K5 for both the PlayStation 2 and Xbox, which is in North American retail stores now. Later this quarter Global Star will release ESPN NBA 2K5, also for PlayStation 2 and Xbox. Other fourth quarter releases include Conflict: Vietnam, the next game in the successful Conflict series, to be distributed in North America on the PlayStation 2, Xbox and PC; Kohan II: Kings of War for PC; Robotech: Invasion and Outlaw Golf 2 for PlayStation 2 and Xbox; and a Game Boy Advance title based on Cartoon Network's hit series Codename: Kids Next Door. Gathering's product lineup for the fourth quarter includes Wings of War for the Xbox and PC; and The Guy Game for PlayStation 2 and Xbox, which are all in retail stores now; and Vietcong: Purple Haze for PlayStation 2 and Xbox.
Midnight Club 3: DUB Edition, the third installment in the multi-million unit selling Midnight Club racing franchise, is planned for release on PlayStation 2 and Xbox in January 2005. The Warriors, a new title based on the Paramount Pictures feature film, is scheduled for launch on PlayStation 2 in April 2005. Additional products planned for fiscal 2005 from Rockstar Games include Grand Theft Auto: San Andreas for PC in the third quarter. Rockstar also plans to release Grand Theft Auto: San Andreas in Japan in fiscal 2005.
Global Star's fiscal 2005 lineup includes the full line of ESPN Videogames sports titles, beginning with ESPN College Hoops in the first quarter, followed by ESPN Major League Baseball in the second quarter.
Other products planned for fiscal 2005 release by Global Star include Charlie and the Chocolate Factory for PC, PS2, Xbox, and Game Boy Advance; Close Combat: First to Fight for Xbox and PC; Dora The Explorer: Super Star Adventures for Game Boy Advance; Stronghold 2 for PC; Ford Mustang: 40th Anniversary Edition for PlayStation 2 and Xbox; a deluxe version of Outlaw Volleyball for the PlayStation 2 featuring new content and enhancements to the franchise; and console versions of Codename: Kids Next Door, Spy vs. Spy, Motocross Mania 3 and Outlaw Tennis.
9/10/2004 Frank Provo