Take-Two revenue and earnings beat Street, shares rise
SAN FRANCISCO (Reuters) - Take-Two Interactive Software Inc (TTWO.O) reported better-than-expected revenue and earnings in the fourth quarter driven by strong sales of "Borderlands 2," and assured investors that its flagship "Grand Theft Auto V" title was on track for the holidays.
Take-Two Interactive stock rose about 5 percent to $17.19 in after-hours trading after closing at $16.39 on Nasdaq.
For the three months ended March 31, net revenue rose to $299.5 million from $148.1 million in the year-ago period.
The games maker forecast non-GAAP revenue for the fiscal year 2014 to end-March to be in the range of $1.75 billion to $1.85 billion and earnings of $2.05 to $2.30 per share. This was in line with the average estimates of Wall Street analysts who expect $1.78 billion in revenue and earnings of $2.26, according to Thomson-Reuters I/B/E/S.
The company delayed the release of its much-anticipated new title from its "Grand Theft Auto franchise to September from its previous spring release window. In January, it said "Grand Theft Auto V" will be released on September 17 for the Xbox 360 and PlayStation3 consoles.
"We have a meaningful expectation on that title and that has a significant influence on the year," Strauss Zellnick, Chairman and CEO said in an interview.
Non-GAAP net revenue, adjusted for deferred revenue and other items, more than doubled to $303.1 million from $148.1 million over the same period. That beat the $280.1 million average estimate of analysts polled by Thomson-Reuters I/B/E/S.
Non-GAAP income was 38 cents per share, exceeding Wall Street's view of 23 cents.
Fourth-quarter sales were driven primarily by "Borderlands 2," "BioShock Infinite" and "NBA 2K13," Zellnick said.
(Reporting by Malathi Nayak; Editing by Phil Berlowitz, Richard Chang and David Gregorio)
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