GAAP Net revenue grew 26% to $1.780 billion
GAAP Net income increased to $0.72 per diluted share
Net cash provided by operating activities grew 27% to $331.4 million
Bookings grew 19% to $1.796 billion
NEW YORK--(BUSINESS WIRE)--May 23, 2017--
Two tables containing "Additional Data" have been added to the end of
the release.
The corrected release reads:
TAKE-TWO INTERACTIVE SOFTWARE, INC. REPORTS STRONG RESULTS FOR FISCAL
YEAR 2017
GAAP Net revenue grew 26% to $1.780 billion
GAAP Net income increased to $0.72 per diluted share
Net cash provided by operating activities grew 27% to $331.4 million
Bookings grew 19% to $1.796 billion
Take-Two Interactive Software, Inc. (NASDAQ:TTWO) today reported strong
results for its fourth quarter and fiscal year 2017, ended March 31,
2017, and provided its initial financial outlook for its first quarter
and fiscal year 2018.
Fiscal Fourth Quarter 2017 GAAP Financial
Highlights
Net revenue grew 52% to $571.6 million, as compared to $377.2 million in
last year’s fiscal fourth quarter. The largest contributors to net
revenue in fiscal fourth quarter 2017 were Mafia III, Grand
Theft Auto V® and Grand Theft Auto Online, NBA® 2K17, WWE®
2K17, and Sid Meier’s Civilization® VI.
Digitally-delivered net revenue grew 43% to $278.7 million, as compared
to $194.8 million in last year’s fiscal fourth quarter. Recurrent
consumer spending (virtual currency, downloadable add-on content and
microtransactions) accounted for 50% of digitally-delivered net revenue,
or 24% of total net revenue. The largest contributors to
digitally-delivered net revenue in fiscal fourth quarter 2017 were Grand
Theft Auto V and Grand Theft Auto Online, NBA 2K17, Mafia
III, Sid Meier’s Civilization VI, and XCOM® 2.
Net income increased to $99.3 million, or $0.89 per diluted share, as
compared to $46.4 million, or $0.48 per diluted share, for the year-ago
period.
The following data, together with a management reporting tax rate of
22%, are used internally by the Company’s management and Board of
Directors to adjust the Company’s GAAP financial results in order to
facilitate comparison of its operating performance between periods and
to better understand its core business and future outlook:
|
|
|
Three Months Ended March 31, 2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial Data
|
|
|
|
Statement
of
Operations
|
|
|
Change in
deferred net
revenue and
related
cost
of goods sold
|
|
|
Stock-based
compensation
|
|
|
Non-cash
amortization
of discount
on
Convertible
Notes
|
|
|
Acquisition-
related
expenses
|
|
|
Amortization
of intangible
assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net revenue
|
|
$
|
571,556
|
|
|
|
(164,429
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of goods sold
|
|
|
314,900
|
|
|
|
(118,285
|
)
|
|
|
(5,083
|
)
|
|
|
|
|
|
|
|
|
(2,630
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit
|
|
|
256,656
|
|
|
|
(46,144
|
)
|
|
|
5,083
|
|
|
|
|
|
|
|
|
|
2,630
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total operating expenses
|
|
|
145,153
|
|
|
|
|
|
|
(21,375
|
)
|
|
|
|
|
|
(1,598
|
)
|
|
|
(2,564
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from operations
|
|
|
111,503
|
|
|
|
(46,144
|
)
|
|
|
26,458
|
|
|
|
|
|
|
1,598
|
|
|
|
5,194
|
|
|
Interest and other, net
|
|
|
(392
|
)
|
|
|
|
|
|
|
|
|
3,351
|
|
|
|
|
|
|
|
Income before income taxes
|
|
|
111,111
|
|
|
|
(46,144
|
)
|
|
|
26,458
|
|
|
|
3,351
|
|
|
1,598
|
|
|
|
5,194
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted
|
|
|
0.89
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
In order to calculate net income per diluted share for management
reporting purposes, the Company uses its fully diluted share count of
117.2 million and adds back to net income interest expense, net of tax,
on the convertible notes of $0.5 million.
Fiscal Fourth Quarter Operational Metric –
Bookings
Total Bookings grew 14% to $370.6 million, as compared to $324.4 million
during last year’s fiscal fourth quarter. The largest contributors to
Bookings were Grand Theft Auto V and Grand Theft Auto Online,
NBA 2K17, WWE 2K17, and Sid Meier’s Civilization VI.
Catalog accounted for $216.8 million of Bookings led by Grand
Theft Auto. Digitally-delivered Bookings grew 28% to $267.4 million,
as compared to $209.5 million in last year’s fiscal fourth quarter, led
by Grand Theft Auto V and Grand Theft Auto Online, NBA
2K17, WWE SuperCard and WWE 2K17, and Sid Meier’s
Civilization VI. Bookings from recurrent consumer spending grew 64%
year-over-year and accounted for 70% of digitally-delivered Bookings, or
50% of total Bookings.
Fiscal Year 2017 GAAP Financial Highlights
Net revenue grew 26% to $1.780 billion, as compared to $1.414 billion in
fiscal year 2016. The largest contributors to net revenue in fiscal year
2017 were Grand Theft Auto V and Grand Theft Auto Online, NBA
2K16 and NBA 2K17, Mafia III, WWE 2K17, and Sid
Meier’s Civilization VI.
Digitally-delivered net revenue grew 32% to $921.7 million, as compared
to $697.7 million in fiscal year 2016. Recurrent consumer spending
accounted for 50% of digitally-delivered net revenue, or 26% of total
net revenue. The largest contributors to digitally-delivered net revenue
in fiscal year 2017 were Grand Theft Auto V and Grand Theft
Auto Online, NBA 2K16 and NBA 2K17, Sid Meier’s
Civilization VI, WWE SuperCard and WWE 2K17, and Mafia
III.
Net income increased to $67.3 million, or $0.72 per diluted share, as
compared to net loss of $8.3 million, or $0.10 per diluted share, in
fiscal year 2016.
Net cash provided by operating activities grew 27% to $331.4 million. As
of March 31, 2017, the Company had cash and short-term investments of
$1.392 billion.
The following data, together with a management reporting tax rate of
22%, are used internally by the Company’s management and Board of
Directors to adjust the Company’s GAAP financial results in order to
facilitate comparison of its operating performance between periods and
to better understand its core business and future outlook:
|
|
|
Twelve Months Ended March 31, 2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial Data
|
|
|
|
Statement
of
Operations
|
|
Change in
deferred net
revenue and
related
cost
of goods sold
|
|
Stock-based
compensation
|
|
Non-cash
amortization
of discount
on
Convertible
Notes
|
|
Acquisition-
related
expenses
|
|
Amortization
of intangible
assets
|
|
Gain on
long-term
investments
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net revenue
|
|
$
|
1,779,748
|
|
|
124,198
|
|
|
|
|
|
|
|
|
|
|
|
Cost of goods sold
|
|
|
1,022,959
|
|
|
3,994
|
|
(21,056
|
)
|
|
|
|
|
|
(2,630
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit
|
|
|
756,789
|
|
|
120,204
|
|
21,056
|
|
|
|
|
|
|
2,630
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total operating expenses
|
|
|
665,484
|
|
|
|
|
(60,823
|
)
|
|
|
|
(1,916
|
)
|
|
(2,564
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from operations
|
|
|
91,305
|
|
|
120,204
|
|
81,879
|
|
|
|
|
1,916
|
|
|
5,194
|
|
|
|
|
Interest and other, net
|
|
|
(15,690
|
)
|
|
|
|
|
|
21,254
|
|
|
|
|
|
|
|
Gain on long-term investments, net
|
|
|
1,350
|
|
|
|
|
|
|
|
|
|
|
|
|
(1,350
|
)
|
|
Income before income taxes
|
|
|
76,965
|
|
|
120,204
|
|
81,879
|
|
|
21,254
|
|
1,916
|
|
|
5,194
|
|
|
(1,350
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted
|
|
$
|
0.72
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
In order to calculate net income per diluted share for management
reporting purposes, the Company uses its fully diluted share count of
115.9 million and adds back to net income interest expense, net of tax,
on the convertible notes of $4.7 million.
Fiscal Year 2017 Operational Metric – Bookings
Total Bookings grew 19% to $1.796 billion, as compared to $1.507 billion
in fiscal year 2016. The largest contributors to Bookings were Grand
Theft Auto V and Grand Theft Auto Online, NBA 2K17 and
NBA 2K16, Mafia III, WWE 2K17, and Sid Meier’s
Civilization VI. Digitally-delivered Bookings grew 25% to $987.2
million, as compared to $790.1 million in fiscal year 2016, led by Grand
Theft Auto V and Grand Theft Auto Online, NBA 2K17, Sid
Meier’s Civilization VI, WWE SuperCard and WWE 2K17,
and Mafia III. Bookings from recurrent consumer spending grew 52%
year-over-year and accounted for 57% of digitally-delivered Bookings, or
32% of total Bookings.
New Operational Metric – Net Sales
Starting with its financial outlook for the first quarter ending June
30, 2017, Take-Two will replace Bookings with Net Sales as an
operational metric. The Company is making this change in order to
increase transparency and to be consistent with operational metrics
provided by peers. Net Sales is defined as the net amount of products
and services sold digitally or sold-in physically during the period.
Unlike Bookings, Net Sales includes licensing fees, merchandise, in-game
advertising, strategy guides and publisher incentives.
Management Comments
“Consumer demand for our entertainment offerings remained exceedingly
strong in the fourth quarter, finishing-off another outstanding year for
our organization,” said Strauss Zelnick, Chairman and CEO of Take-Two.
“During fiscal 2017, we delivered Bookings and cash provided by
operating activities that significantly exceeded our original
expectations, along with revenue growth and margin expansion. These
results were driven by the continued extraordinary performance of Grand
Theft Auto V and Grand Theft Auto Online, a diverse array of
exciting titles from 2K, and record digitally-delivered revenue and
Bookings, including our highest-ever from recurrent consumer spending.
We invested our capital to grow and diversify our business further,
including by acquiring Social Point, a leading free-to-play mobile game
developer.
“As announced yesterday, Rockstar Games has decided to move the release
of Red Dead Redemption 2 to Spring 2018. As Rockstar stated, Red
Dead Redemption 2 will be their first game created from the ground
up for the latest generation of console hardware, and some extra time is
necessary to ensure that they deliver the best experience possible. Such
decisions are not made lightly, and are driven by our team’s unwavering
commitment to unparalleled quality.
“That said, we still expect fiscal 2018 to be a year of strong earnings
and cash provided by operating activities for Take-Two, despite an
unusually light release slate, driven by new releases of NBA 2K
and WWE 2K, our robust catalog led by Grand Theft Auto,
and innovative offerings designed to drive engagement and recurrent
consumer spending. Looking ahead to fiscal 2019, we expect to deliver
both record Net Sales and record net cash provided by operating
activities, in excess of $2.5 billion and $700 million, respectively,
led by the launches of Rockstar Games’ Red Dead Redemption 2 and
a highly anticipated new title from one of 2K’s biggest franchises.”
Business and Product Highlights
Since January 1, 2017:
Take-Two:
-
Expanded its relationship with the NBA through the creation of the NBA 2K
eSports League, a new, professional competitive gaming league. Set
to debut in 2018, this groundbreaking competitive gaming league is
jointly owned by Take-Two and the NBA, and will consist of teams
operated by actual NBA franchises. The NBA 2K
eSports League will follow a professional sports league format:
competing head-to-head throughout a regular season, participating in a
bracketed playoff system, and concluding with a championship matchup.
-
Broadened the skills of its Board of Directors through the appointment
of LaVerne Srinivasan to the Board and to its Corporate Governance
Committee. Ms. Srinivasan is Vice President of the National Program
and Program Director for Education at the Carnegie Corporation of New
York. Prior to her current position, she worked at various educational
technology, urban district change, and non-profit education reform
companies. From 1993 through 2003, she served in various roles at BMG
Entertainment, including Senior Vice President and General Counsel.
Ms. Srinivasan holds an A.B. in sociology from Harvard College and a
J.D. from Harvard Law School.
-
Acquired privately-held Social Point S.L. for $250 million, comprised
of $175 million in cash and 1,480,168 unregistered shares of Take-Two
common stock (calculated by dividing $75 million by the average
closing price per share on the Nasdaq Global Select Market during the
thirty trading day period ending on January 26, 2017), plus potential
earn-out consideration of up to an aggregate of $25.9 million in cash
and shares of Take-Two common stock. The cash portion was funded from
Take-Two’s cash on hand. Founded in 2008 and headquartered in
Barcelona, Spain, Social Point is a highly-successful free-to-play
mobile game developer that focuses on delivering high-quality,
deeply-engaging entertainment experiences. The transaction is expected
to be accretive to net income per share, excluding transaction costs
and amortization of intangible assets, in fiscal year 2018.
Rockstar Games:
-
Released new free content updates for Grand Theft Auto Online,
including:
-
Cunning Stunts Special Vehicle Circuit Update, which
features new vehicles and race types, as well as adding Props and
psychedelic Stunt Tubes to the Stunt Race Creator;
-
Land Grab, which allows teams to battle across seven
new maps to control territory in an unforgiving cyberspace;
-
Tiny Racers, an all-new retro-styled Adversary Mode, which
pits players against each other on special tracks made for
vehicular combat with a shifting bird’s eye perspective in the
spirit of classic Grand Theft Auto titles.
-
Made Grand Theft Auto IV and Grand Theft Auto: Episodes from
Liberty City available as part of Microsoft’s Xbox One Backwards
Compatibility program, enabling owners of the Xbox 360 versions of Grand
Theft Auto IV (including The Complete Edition), Grand
Theft Auto: Episodes from Liberty City, Grand Theft Auto: The
Lost and Damned and Grand Theft Auto: The Ballad of Gay Tony
to play these games on Xbox One. In addition, Grand Theft Auto IV
and Grand Theft Auto: Episodes from Liberty City are now
available for purchase through digital download from the Games Store
on Xbox One.
-
Announced that Red Dead Redemption 2® is now
planned for release worldwide in Spring 2018 (fiscal year 2019) for
PlayStation4 and Xbox One.
2K:
-
Launched WWE 2K17 for the PC, and released the title’s
supporting Future Stars Pack and Hall of Fame Showcase
downloadable add-on content. Developed collaboratively by
Yuke's and Visual Concepts, WWE 2K17 has sold-in approximately
3 million units to date.
-
Announced that NBA 2K will feature Hall of Famer Shaquille
O’Neal on the cover of the NBA 2K18 Legend Edition. This
special edition will place a spotlight on “The Big Aristotle”
with special Shaq-themed memorabilia and content, extending his legacy
as the most dominant center in NBA history. NBA 2K18 will be
available for PlayStation®4 system and PlayStation®3
computer entertainment system, Xbox One and Xbox 360, Nintendo Switch,
and Windows PC platforms on September 19, 2017.
-
Released the Australia Civilization & Scenario Pack and the Persia
& Macedon Civilization & Scenario Pack for Sid Meier’s
Civilization VI. Developed by Firaxis Games, Sid Meier’s
Civilization VI received stellar reviews and is the
fastest-selling release in the history of the series, with sell-in of
nearly 2 million units to date. The title will be supported with
additional free and paid downloadable add-on content.
-
Released the Faster Baby! downloadable add-on pack for Mafia
III. Developed by Hangar 13, Mafia III will also be
supported with the Stones Unturned and Sign of the Times add-on
packs that are planned for release during summer 2017.
-
Released WWE SuperCard - Season 3 Update #3 for iOS and
Android devices. Developed by Cat Daddy Games, Update #3 is a
free update to WWE SuperCard, the popular WWE collectible
card-battling game, which has now been downloaded more than 14 million
times.
Financial Outlook for Fiscal 2018
Take-Two is providing its initial financial outlook for its fiscal first
quarter ending June 30, 2017 and its fiscal year ending March 31, 2018.
First Quarter Ending June 30, 2017
-
GAAP net revenue is expected to range from $390 to $440 million
-
GAAP net income is expected to range from $74 to $85 million
-
GAAP diluted net income per share is expected to range from $0.65 to
$0.75
-
Share count used to calculate diluted net income per share is expected
to be 119.0 million (1)
-
Net Sales (operational metric) are expected to range from $240 to $290
million
The Company is also providing selected data and its management reporting
tax rate of 22% that are used internally by its management and Board of
Directors to adjust the Company’s GAAP financial outlook in order to
facilitate comparison of its operating performance between periods and
to better understand its core business and future outlook:
|
|
|
Three Months Ended June 30, 2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial Data
|
|
$ in millions
|
|
GAAP
Outlook (2)
|
|
Change in
deferred net
revenue and
related
cost of
goods sold
|
|
Stock-based
compensation (3)
|
|
Non-cash
amortization
of discount
on
Convertible
Notes
|
|
Amortization
of Intangible
Assets
|
|
Reorganization
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net revenue
|
|
$390 to $440
|
|
($150)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of goods sold
|
|
$147 to $175
|
|
($45)
|
|
($3)
|
|
|
|
($4)
|
|
($3)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Expenses
|
|
$160 to $170
|
|
|
|
($23)
|
|
|
|
($4)
|
|
($4)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest and other, net
|
|
$3
|
|
|
|
|
|
($3)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) before income taxes
|
|
$80 to $93
|
|
($105)
|
|
$26
|
|
$3
|
|
$8
|
|
$7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fiscal Year Ending March 31, 2018
-
GAAP net revenue is expected to range from $1.95 to $2.05 billion
-
GAAP net income is expected to range from $504 to $540 million
-
GAAP diluted net income per share is expected to range from $4.35 to
$4.65
-
Share count used to calculate diluted net income per share is expected
to be 119.7 million (4)
-
Net cash provided by operating activities is expected to be
approximately $150 million
-
Capital expenditures are expected to be approximately $60 million
-
Net Sales (operational metric) are expected to range from $1.42 to
$1.52 billion
The Company is also providing selected data and its management reporting
tax rate of 22% that are used internally by its management and Board of
Directors to adjust the Company’s GAAP financial outlook in order to
facilitate comparison of its operating performance between periods and
to better understand its core business and future outlook:
|
|
|
Twelve Months Ended March 31, 2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial Data
|
|
$ in millions
|
|
GAAP
Outlook (2)
|
|
Change in
deferred net
revenue and
related
cost of
goods sold
|
|
Stock-based
compensation (3)
|
|
Non-cash
amortization
of discount
on
Convertible
Notes
|
|
Amortization
of
Intangible
Assets
|
|
Reorganization
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net revenue
|
|
$1,950 to $2,050
|
|
($533)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of goods sold
|
|
$671 to $712
|
|
($60)
|
|
($13)
|
|
|
|
($17)
|
|
($3)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Expenses
|
|
$720 to $740
|
|
|
|
($70)
|
|
|
|
($15)
|
|
($4)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest and other, net
|
|
$10
|
|
|
|
|
|
($14)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) before income taxes
|
|
$549 to $588
|
|
($473)
|
|
$83
|
|
$14
|
|
$32
|
|
$7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1)
|
|
Includes 105.8 million basic shares, 1.2 million participating
shares and 12.0 million shares representing the potential dilution
from convertible notes. The interest expense, net of tax, on the
convertible notes, which is added back to net income to calculate
diluted net income per share for management reporting purposes is
$0.6 million.
|
|
2)
|
|
The individual components of the financial outlook may not foot to
the totals as the Company does not expect actual results for every
component to be at the low end or high end of the outlook range
simultaneously.
|
|
3)
|
|
The Company's stock-based compensation expense for the periods above
includes the cost of approximately 0.9 million restricted stock
units previously granted to ZelnickMedia that are subject to
variable accounting. Actual expense to be recorded in connection
with these shares is dependent upon several factors, including
future changes in Take-Two's stock price.
|
|
4)
|
|
Includes 106.8 million basic shares, 0.9 million participating
shares and 12.0 million shares representing the potential dilution
from convertible notes. The interest expense, net of tax, on the
convertible notes, which is added back to net income to calculate
diluted net income per share for management reporting purposes is
$2.2 million.
|
|
|
|
|
Key assumptions and dependencies underlying the Company’s financial
outlook include: the timely delivery of the titles included in this
financial outlook; continued consumer acceptance of the Xbox One and
PlayStation 4; the ability to develop and publish products that capture
market share for these new-generation systems while continuing to
leverage opportunities on the Xbox 360, PlayStation 3 and PC; and stable
foreign exchange rates. See also “Cautionary Note Regarding Forward
Looking Statements” below.
Product Releases
The following titles were released since January 1, 2017:
|
Label
|
|
|
|
Title
|
|
|
Platforms
|
|
|
Release Date
|
|
2K
|
|
|
|
WWE 2K17: Future Stars Pack (DLC)
|
|
|
PS4, PS3, Xbox One, Xbox 360
|
|
|
January 17, 2017
|
|
2K
|
|
|
|
WWE 2K17
|
|
|
PC
|
|
|
February 7, 2017
|
|
2K
|
|
|
|
WWE 2K17: Hall of Fame Showcase (DLC)
|
|
|
PS4, PS3, Xbox One, Xbox 360
|
|
|
February 21, 2017
|
|
2K
|
|
|
|
Sid Meier’s Civilization VI: Australia Civilization & Scenario
Pack (DLC)
|
|
|
PC
|
|
|
February 23, 2017
|
|
2K
|
|
|
|
Sid Meier’s Civilization VI: Persia & Macedon Civilization &
Scenario Pack (DLC)
|
|
|
PC
|
|
|
March 23, 2017
|
|
2K
|
|
|
|
Mafia III: Faster Baby! (DLC)
|
|
|
PS4, Xbox One, PC
|
|
|
March 28, 2017
|
Take-Two's lineup of future titles announced to date includes:
|
Label
|
|
|
Title
|
|
|
Platforms
|
|
|
Release Date
|
|
2K
|
|
|
Mafia III: Stones Unturned (DLC)
|
|
|
PS4, Xbox One, PC
|
|
|
May 30, 2017
|
|
2K
|
|
|
Mafia III: Sign of the Times (DLC)
|
|
|
PS4, Xbox One, PC
|
|
|
Summer 2017
|
|
2K
|
|
|
NBA 2K18
|
|
|
PS4, PS3, Xbox One, Xbox 360, Switch, PC
|
|
|
September 19, 2017
|
|
2K
|
|
|
WWE 2K18
|
|
|
TBA
|
|
|
Fall 2017
|
|
Rockstar Games
|
|
|
Red Dead Redemption 2
|
|
|
PS4, Xbox One
|
|
|
Spring 2018
|
|
|
|
|
|
|
|
|
|
|
|
Conference Call
Take-Two will host a conference call today at 8:00 a.m. Eastern Time to
review these results and discuss other topics. The call can be accessed
by dialing (877) 407-0984 or (201) 689-8577. A live listen-only webcast
of the call will be available by visiting http://ir.take2games.com
and a replay will be available following the call at the same location.
Final Results
The financial results discussed herein are presented on a preliminary
basis; final data will be included in Take-Two’s Annual Report on Form
10-K for the period ended March 31, 2017.
About Take-Two Interactive Software
Headquartered in New York City, Take-Two Interactive Software, Inc. is a
leading developer, publisher and marketer of interactive entertainment
for consumers around the globe. The Company develops and publishes
products principally through its two wholly-owned labels Rockstar Games
and 2K. Our products are designed for console systems and personal
computers, including smartphones and tablets, and are delivered through
physical retail, digital download, online platforms and cloud streaming
services. The Company’s common stock is publicly traded on NASDAQ under
the symbol TTWO. For more corporate and product information please visit
our website at http://www.take2games.com.
All trademarks and copyrights contained herein are the property of their
respective holders.
Cautionary Note Regarding Forward-Looking
Statements
The statements contained herein which are not historical facts are
considered forward-looking statements under federal securities laws and
may be identified by words such as "anticipates," "believes,"
"estimates," "expects," "intends," "plans," "potential," "predicts,"
"projects," "seeks," “should,” "will," or words of similar meaning and
include, but are not limited to, statements regarding the outlook for
the Company's future business and financial performance. Such
forward-looking statements are based on the current beliefs of our
management as well as assumptions made by and information currently
available to them, which are subject to inherent uncertainties, risks
and changes in circumstances that are difficult to predict. Actual
outcomes and results may vary materially from these forward-looking
statements based on a variety of risks and uncertainties including: our
dependence on key management and product development personnel, our
dependence on our Grand Theft Auto products and our ability to
develop other hit titles, the timely release and significant market
acceptance of our games, the ability to maintain acceptable pricing
levels on our games, and risks associated with international operations.
Other important factors and information are contained in the Company's
most recent Annual Report on Form 10-K, including the risks summarized
in the section entitled "Risk Factors," the Company’s most recent
Quarterly Report on Form 10-Q, and the Company's other periodic filings
with the SEC, which can be accessed at www.take2games.com.
All forward-looking statements are qualified by these cautionary
statements and apply only as of the date they are made. The Company
undertakes no obligation to update any forward-looking statement,
whether as a result of new information, future events or otherwise.
|
|
|
TAKE-TWO INTERACTIVE SOFTWARE, INC. and SUBSIDIARIES
|
|
CONSOLIDATED STATEMENTS OF OPERATIONS
|
|
(in thousands, except per share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended March 31,
|
|
Twelve months ended March 31,
|
|
|
|
|
2017
|
|
|
|
2016
|
|
|
|
2017
|
|
|
|
2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net revenue
|
|
$
|
571,556
|
|
|
$
|
377,206
|
|
|
$
|
1,779,748
|
|
|
$
|
1,413,698
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of goods sold:
|
|
|
|
|
|
|
|
|
|
Internal royalties
|
|
|
90,071
|
|
|
|
72,552
|
|
|
|
330,782
|
|
|
|
328,610
|
|
|
Software development costs and royalties
|
|
|
116,922
|
|
|
|
71,352
|
|
|
|
335,675
|
|
|
|
223,512
|
|
|
Product costs
|
|
|
85,787
|
|
|
|
46,554
|
|
|
|
255,914
|
|
|
|
200,206
|
|
|
Licenses
|
|
|
22,120
|
|
|
|
18,999
|
|
|
|
100,588
|
|
|
|
61,545
|
|
|
Total cost of goods sold
|
|
|
314,900
|
|
|
|
209,457
|
|
|
|
1,022,959
|
|
|
|
813,873
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit
|
|
|
256,656
|
|
|
|
167,749
|
|
|
|
756,789
|
|
|
|
599,825
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling and marketing
|
|
|
38,312
|
|
|
|
38,020
|
|
|
|
285,453
|
|
|
|
198,309
|
|
|
General and administrative
|
|
|
62,042
|
|
|
|
44,395
|
|
|
|
211,409
|
|
|
|
192,452
|
|
|
Research and development
|
|
|
36,421
|
|
|
|
33,308
|
|
|
|
137,915
|
|
|
|
119,807
|
|
|
Business reorganization
|
|
|
-
|
|
|
|
113
|
|
|
|
-
|
|
|
|
71,285
|
|
|
Depreciation and amortization
|
|
|
8,378
|
|
|
|
7,338
|
|
|
|
30,707
|
|
|
|
28,800
|
|
|
Total operating expenses
|
|
|
145,153
|
|
|
|
123,174
|
|
|
|
665,484
|
|
|
|
610,653
|
|
|
Income (loss) from operations
|
|
|
111,503
|
|
|
|
44,575
|
|
|
|
91,305
|
|
|
|
(10,828
|
)
|
|
Interest and other, net
|
|
|
(392
|
)
|
|
|
(6,257
|
)
|
|
|
(15,690
|
)
|
|
|
(30,205
|
)
|
|
Gain on long-term investments, net
|
|
|
-
|
|
|
|
2,683
|
|
|
|
1,350
|
|
|
|
2,683
|
|
|
Income (loss) before income taxes
|
|
|
111,111
|
|
|
|
41,001
|
|
|
|
76,965
|
|
|
|
(38,350
|
)
|
|
Provision for (benefit from) income taxes
|
|
|
11,831
|
|
|
|
(5,398
|
)
|
|
|
9,662
|
|
|
|
(30,048
|
)
|
|
Net income (loss)
|
|
$
|
99,280
|
|
|
$
|
46,399
|
|
|
$
|
67,303
|
|
|
$
|
(8,302
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Earnings (loss) per share:
|
|
|
|
|
|
|
|
|
|
Basic earnings (loss) per share
|
|
$
|
0.97
|
|
|
$
|
0.54
|
|
|
$
|
0.73
|
|
|
$
|
(0.10
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings (loss) per share
|
|
$
|
0.89
|
|
|
$
|
0.48
|
|
|
|
0.72
|
|
|
$
|
(0.10
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares outstanding:
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
100,490
|
|
|
|
86,375
|
|
|
|
90,180
|
|
|
|
83,417
|
|
|
Diluted
|
|
|
117,245
|
|
|
|
114,496
|
|
|
|
94,073
|
|
|
|
83,417
|
|
|
|
|
|
|
|
|
|
|
|
|
Computation of Basic and Diluted EPS:
|
|
|
|
|
|
|
|
|
|
Net income (loss)
|
|
$
|
99,280
|
|
|
$
|
46,399
|
|
|
$
|
67,303
|
|
|
$
|
(8,302
|
)
|
|
Less: net income allocated to participating securities
|
|
|
(1,370
|
)
|
|
|
(1,447
|
)
|
|
|
(1,275
|
)
|
|
|
-
|
|
|
Net loss for basic and diluted EPS calculation
|
|
$
|
97,910
|
|
|
$
|
44,952
|
|
|
$
|
66,028
|
|
|
$
|
(8,302
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares outstanding - basic
|
|
|
101,896
|
|
|
|
86,375
|
|
|
$
|
91,921
|
|
|
|
83,417
|
|
|
Less: weighted average participating shares outstanding
|
|
|
(1,406
|
)
|
|
|
(2,694
|
)
|
|
|
(1,741
|
)
|
|
|
-
|
|
|
Weighted average common shares outstanding - basic
|
|
|
100,490
|
|
|
|
83,681
|
|
|
|
90,180
|
|
|
|
83,417
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings (loss) per share
|
|
$
|
0.97
|
|
|
$
|
0.54
|
|
|
$
|
0.73
|
|
|
$
|
(0.10
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Computation of Diluted EPS:
|
|
|
|
|
|
|
|
|
|
Net income (loss)
|
|
$
|
99,280
|
|
|
$
|
46,399
|
|
|
$
|
67,303
|
|
|
$
|
(8,302
|
)
|
|
Less: net income allocated to participating securities
|
|
|
(1,191
|
)
|
|
|
(1,092
|
)
|
|
|
(1,246
|
)
|
|
|
-
|
|
|
Add: interest expense, net of tax, on Convertible Notes
|
|
|
4,980
|
|
|
|
8,172
|
|
|
|
-
|
|
|
|
-
|
|
|
Net income (loss) for diluted EPS calculation
|
|
$
|
103,069
|
|
|
$
|
53,479
|
|
|
$
|
66,057
|
|
|
$
|
(8,302
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average common shares outstanding - basic
|
|
|
101,896
|
|
|
|
86,375
|
|
|
|
91,921
|
|
|
|
83,417
|
|
|
Add: dilutive effect of common stock equivalents
|
|
|
15,349
|
|
|
|
28,121
|
|
|
|
2,152
|
|
|
|
-
|
|
|
Total weighted average shares outstanding - diluted
|
|
|
117,245
|
|
|
|
114,496
|
|
|
|
94,073
|
|
|
|
83,417
|
|
|
Less: weighted average participating shares outstanding
|
|
|
(1,406
|
)
|
|
|
(2,694
|
)
|
|
|
(1,741
|
)
|
|
|
-
|
|
|
Weighted average common shares outstanding - diluted
|
|
|
115,839
|
|
|
|
111,802
|
|
|
|
92,332
|
|
|
|
83,417
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings (loss) per share
|
|
$
|
0.89
|
|
|
$
|
0.48
|
|
|
$
|
0.72
|
|
|
$
|
(0.10
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TAKE-TWO INTERACTIVE SOFTWARE, INC. and SUBSIDIARIES
|
|
CONSOLIDATED BALANCE SHEETS
|
|
(in thousands, except per share amounts)
|
|
|
|
|
|
|
|
|
|
March 31,
|
|
March 31,
|
|
|
|
|
2017
|
|
|
|
2016
|
|
|
|
|
|
|
|
|
ASSETS
|
|
|
|
|
|
Current assets:
|
|
|
|
|
|
Cash and cash equivalents
|
|
$
|
943,396
|
|
|
$
|
798,742
|
|
|
Short-term investments
|
|
|
448,932
|
|
|
|
470,820
|
|
|
Restricted cash
|
|
|
337,818
|
|
|
|
261,169
|
|
|
Accounts receivable, net of allowances of $66,483 and $45,552 at
March 31, 2017 and 2016, respectively
|
|
|
219,558
|
|
|
|
168,527
|
|
|
Inventory
|
|
|
16,323
|
|
|
|
15,888
|
|
|
Software development costs and licenses
|
|
|
41,721
|
|
|
|
178,387
|
|
|
Deferred cost of goods sold
|
|
|
127,901
|
|
|
|
98,474
|
|
|
Prepaid expenses and other
|
|
|
59,593
|
|
|
|
53,269
|
|
|
Total current assets
|
|
|
2,195,242
|
|
|
|
2,045,276
|
|
|
|
|
|
|
|
|
Fixed assets, net
|
|
|
67,300
|
|
|
|
77,127
|
|
|
Software development costs and licenses, net of current portion
|
|
|
381,910
|
|
|
|
214,831
|
|
|
Deferred cost of goods sold, net of current portion
|
|
|
-
|
|
|
|
17,915
|
|
|
Goodwill
|
|
|
359,115
|
|
|
|
217,080
|
|
|
Other intangibles, net
|
|
|
110,262
|
|
|
|
4,609
|
|
|
Other assets
|
|
|
35,325
|
|
|
|
13,439
|
|
|
Total assets
|
|
$
|
3,149,154
|
|
|
$
|
2,590,277
|
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY
|
|
|
|
|
|
Current liabilities:
|
|
|
|
|
|
Accounts payable
|
|
$
|
31,892
|
|
|
$
|
30,448
|
|
|
Accrued expenses and other current liabilities
|
|
|
750,875
|
|
|
|
607,479
|
|
|
Deferred revenue
|
|
|
903,125
|
|
|
|
582,484
|
|
|
Total current liabilities
|
|
|
1,685,892
|
|
|
|
1,220,411
|
|
|
|
|
|
|
|
|
Long-term debt
|
|
|
251,929
|
|
|
|
497,935
|
|
|
Non-current deferred revenue
|
|
|
10,406
|
|
|
|
216,319
|
|
|
Other long-term liabilities
|
|
|
197,199
|
|
|
|
74,227
|
|
|
Total liabilities
|
|
|
2,145,426
|
|
|
|
2,008,892
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders' equity:
|
|
|
|
|
|
Preferred stock, $.01 par value, 5,000 shares authorized
|
|
|
-
|
|
|
|
-
|
|
|
Common stock, $.01 par value, 200,000 shares authorized; 119,813 and
103,765 shares
|
|
|
|
|
|
issued and 102,621 and 86,573 outstanding at March 31, 2017 and
2016, respectively
|
|
|
1,198
|
|
|
|
1,038
|
|
|
Additional paid-in capital
|
|
|
1,452,754
|
|
|
|
1,088,628
|
|
|
Treasury stock, at cost; 17,192 common shares at March 31, 2017 and
2016, respectively
|
|
|
(303,388
|
)
|
|
|
(303,388
|
)
|
|
Accumulated deficit
|
|
|
(99,694
|
)
|
|
|
(166,997
|
)
|
|
Accumulated other comprehensive loss
|
|
|
(47,142
|
)
|
|
|
(37,896
|
)
|
|
Total stockholders' equity
|
|
|
1,003,728
|
|
|
|
581,385
|
|
|
Total liabilities and stockholders' equity
|
|
$
|
3,149,154
|
|
|
$
|
2,590,277
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TAKE-TWO INTERACTIVE SOFTWARE, INC. and SUBSIDIARIES
|
|
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
|
(in thousands)
|
|
|
|
|
Twelve months ended March 31,
|
|
|
|
|
|
2017
|
|
|
|
2016
|
|
|
|
|
|
|
|
|
|
Operating activities:
|
|
|
|
|
|
|
Net income (loss)
|
|
$
|
67,303
|
|
|
$
|
(8,302
|
)
|
|
|
|
|
|
|
|
Adjustments to reconcile net loss to net cash provided by operating
activities:
|
|
|
|
|
Amortization and impairment of software development costs and
licenses
|
|
|
221,911
|
|
|
|
134,472
|
|
|
|
Depreciation and amortization
|
|
|
30,707
|
|
|
|
28,800
|
|
|
|
Amortization and impairment of intellectual property
|
|
|
6,738
|
|
|
|
160
|
|
|
|
Stock-based compensation
|
|
|
81,879
|
|
|
|
69,996
|
|
|
|
Deferred income taxes
|
|
|
3,020
|
|
|
|
(270
|
)
|
|
|
Amortization of discount on Convertible Notes
|
|
|
21,222
|
|
|
|
23,457
|
|
|
|
Amortization of debt issuance costs
|
|
|
1,227
|
|
|
|
1,567
|
|
|
|
Gain on of long-term investments, net
|
|
|
(1,350
|
)
|
|
|
(2,683
|
)
|
|
|
Other, net
|
|
|
(3,410
|
)
|
|
|
2,588
|
|
|
|
Changes in assets and liabilities:
|
|
|
|
|
|
|
Restricted cash
|
|
|
(76,474
|
)
|
|
|
(91,491
|
)
|
|
|
Accounts receivable
|
|
|
(41,956
|
)
|
|
|
49,348
|
|
|
|
Inventory
|
|
|
(4,942
|
)
|
|
|
3,809
|
|
|
|
Software development costs and licenses
|
|
|
(252,951
|
)
|
|
|
(219,217
|
)
|
|
|
Prepaid expenses, other current and other non-current assets
|
|
|
(22,155
|
)
|
|
|
(12,272
|
)
|
|
|
Deferred revenue
|
|
|
126,285
|
|
|
|
152,325
|
|
|
|
Deferred cost of goods sold
|
|
|
(14,969
|
)
|
|
|
(41,144
|
)
|
|
|
Accounts payable, accrued expenses and other liabilities
|
|
|
189,344
|
|
|
|
170,162
|
|
|
|
Net cash provided by operating activities
|
|
|
331,429
|
|
|
|
261,305
|
|
|
|
|
|
|
|
|
|
Investing activities:
|
|
|
|
|
|
|
Change in bank time deposits
|
|
|
89,076
|
|
|
|
(182,383
|
)
|
|
|
Proceeds from available-for-sale securities
|
|
|
155,936
|
|
|
|
43,314
|
|
|
|
Purchases of available-for-sale securities
|
|
|
(195,733
|
)
|
|
|
(150,501
|
)
|
|
|
Purchases of commercial paper
|
|
|
(25,938
|
)
|
|
|
-
|
|
|
|
Business acquisitions, net of cash acquired
|
|
|
(130,669
|
)
|
|
|
-
|
|
|
|
Purchases of fixed assets
|
|
|
(21,167
|
)
|
|
|
(37,280
|
)
|
|
|
Proceeds from sale of long-term investments
|
|
|
1,350
|
|
|
|
2,683
|
|
|
|
Purchase of long-term investments
|
|
|
(1,885
|
)
|
|
|
-
|
|
|
|
Other
|
|
|
-
|
|
|
|
(349
|
)
|
|
|
Net cash used in investing activities
|
|
|
(129,030
|
)
|
|
|
(324,516
|
)
|
|
|
|
|
|
|
|
|
Financing activities:
|
|
|
|
|
|
|
Excess tax benefit from stock-based compensation
|
|
|
1,990
|
|
|
|
1,421
|
|
|
|
Tax payment related to net share settlements on restricted stock
awards
|
|
|
(51,762
|
)
|
|
|
(22,916
|
)
|
|
|
Repurchase of common stock
|
|
|
-
|
|
|
|
(26,552
|
)
|
|
|
Net cash used in financing activities
|
|
|
(49,772
|
)
|
|
|
(48,047
|
)
|
|
|
|
|
|
|
|
|
|
Effects of foreign exchange rates on cash and cash equivalents
|
|
|
(7,973
|
)
|
|
|
(1,120
|
)
|
|
|
|
|
|
|
|
|
|
Net increase (decrease) in cash and cash equivalents
|
|
|
144,654
|
|
|
|
(112,378
|
)
|
|
|
Cash and cash equivalents, beginning of year
|
|
|
798,742
|
|
|
|
911,120
|
|
|
|
Cash and cash equivalents, end of period
|
|
$
|
943,396
|
|
|
$
|
798,742
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TAKE-TWO INTERACTIVE SOFTWARE, INC. and SUBSIDIARIES
|
|
Net Revenue by Geographic Region, Distribution Channel, and
Platform Mix
|
|
(in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
March 31, 2017
|
|
|
Three Months Ended
March 31, 2016
|
|
|
|
|
Amount
|
|
% of Total
|
|
|
Amount
|
|
% of Total
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Revenues by Geographic Region
|
|
|
|
|
|
|
|
|
|
|
|
United States
|
|
|
$
|
296,040
|
|
|
52
|
%
|
|
|
$
|
196,037
|
|
|
52
|
%
|
|
International
|
|
|
|
275,516
|
|
|
48
|
%
|
|
|
|
181,169
|
|
|
48
|
%
|
|
Total net revenues
|
|
|
|
571,556
|
|
|
100
|
%
|
|
|
|
377,206
|
|
|
100
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Change in Deferred Net Revenues
|
|
|
|
|
|
|
|
|
|
|
|
United States
|
|
|
$
|
(56,680
|
)
|
|
|
|
|
$
|
(4,159
|
)
|
|
|
|
International
|
|
|
|
(107,749
|
)
|
|
|
|
|
|
(30,535
|
)
|
|
|
|
Total changes in deferred net revenues
|
|
|
|
(164,429
|
)
|
|
|
|
|
|
(34,694
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
March 31, 2017
|
|
|
Three Months Ended
March 31, 2016
|
|
|
|
|
Amount
|
|
% of Total
|
|
|
Amount
|
|
% of Total
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Revenues by Distribution Channel
|
|
|
|
|
|
|
|
|
|
|
|
Digital online
|
|
|
$
|
278,683
|
|
|
49
|
%
|
|
|
$
|
194,798
|
|
|
52
|
%
|
|
Physical retail and other
|
|
|
|
292,873
|
|
|
51
|
%
|
|
|
|
182,408
|
|
|
48
|
%
|
|
Total net revenues
|
|
|
|
571,556
|
|
|
100
|
%
|
|
|
|
377,206
|
|
|
100
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Change in Deferred Net Revenues
|
|
|
|
|
|
|
|
|
|
|
|
Digital online
|
|
|
$
|
19,802
|
|
|
|
|
|
$
|
31,829
|
|
|
|
|
Physical retail and other
|
|
|
|
(184,231
|
)
|
|
|
|
|
|
(66,523
|
)
|
|
|
|
Total changes in deferred net revenues
|
|
|
|
(164,429
|
)
|
|
|
|
|
|
(34,694
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
March 31, 2017
|
|
|
Three Months Ended
March 31, 2016
|
|
|
|
|
Amount
|
|
% of Total
|
|
|
Amount
|
|
% of Total
|
|
Net Revenues by Platform Mix
|
|
|
|
|
|
|
|
|
|
|
|
Console
|
|
|
$
|
479,958
|
|
|
84
|
%
|
|
|
$
|
288,785
|
|
|
77
|
%
|
|
PC and other
|
|
|
|
91,598
|
|
|
16
|
%
|
|
|
|
88,421
|
|
|
23
|
%
|
|
Total net revenues
|
|
|
|
571,556
|
|
|
100
|
%
|
|
|
|
377,206
|
|
|
100
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Change in Deferred Net Revenues
|
|
|
|
|
|
|
|
|
|
|
|
Console
|
|
|
$
|
(161,310
|
)
|
|
|
|
|
$
|
(30,253
|
)
|
|
|
|
PC and other
|
|
|
|
(3,119
|
)
|
|
|
|
|
|
(4,441
|
)
|
|
|
|
Total changes in deferred net revenues
|
|
|
|
(164,429
|
)
|
|
|
|
|
|
(34,694
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TAKE-TWO INTERACTIVE SOFTWARE, INC. and SUBSIDIARIES
|
|
Net Revenue by Geographic Region, Distribution Channel, and
Platform Mix
|
|
(in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Twelve Months Ended
March 31, 2017
|
|
|
Twelve Months Ended
March 31, 2016
|
|
|
|
|
Amount
|
|
% of Total
|
|
|
Amount
|
|
% of Total
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Revenues by Geographic Region
|
|
|
|
|
|
|
|
|
|
|
|
United States
|
|
|
$
|
999,128
|
|
|
56
|
%
|
|
|
$
|
742,963
|
|
53
|
%
|
|
International
|
|
|
|
780,620
|
|
|
44
|
%
|
|
|
|
670,735
|
|
47
|
%
|
|
Total net revenues
|
|
|
|
1,779,748
|
|
|
100
|
%
|
|
|
|
1,413,698
|
|
100
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Change in Deferred Net Revenues
|
|
|
|
|
|
|
|
|
|
|
|
United States
|
|
|
$
|
78,356
|
|
|
|
|
|
$
|
97,770
|
|
|
|
International
|
|
|
|
45,842
|
|
|
|
|
|
|
49,158
|
|
|
|
Total changes in deferred net revenues
|
|
|
|
124,198
|
|
|
|
|
|
|
146,928
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Twelve Months Ended
March 31, 2017
|
|
|
Twelve Months Ended
March 31, 2016
|
|
|
|
|
Amount
|
|
% of Total
|
|
|
Amount
|
|
% of Total
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Revenues by Distribution Channel
|
|
|
|
|
|
|
|
|
|
|
|
Digital online
|
|
|
$
|
921,734
|
|
|
52
|
%
|
|
|
$
|
697,658
|
|
49
|
%
|
|
Physical retail and other
|
|
|
|
858,014
|
|
|
48
|
%
|
|
|
|
716,040
|
|
51
|
%
|
|
Total net revenues
|
|
|
|
1,779,748
|
|
|
100
|
%
|
|
|
|
1,413,698
|
|
100
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Change in Deferred Net Revenues
|
|
|
|
|
|
|
|
|
|
|
|
Digital online
|
|
|
$
|
159,528
|
|
|
|
|
|
$
|
137,563
|
|
|
|
Physical retail and other
|
|
|
|
(35,330
|
)
|
|
|
|
|
|
9,365
|
|
|
|
Total changes in deferred net revenues
|
|
|
|
124,198
|
|
|
|
|
|
|
146,928
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Twelve Months Ended
March 31, 2017
|
|
|
Twelve Months Ended
March 31, 2016
|
|
|
|
|
Amount
|
|
% of Total
|
|
|
Amount
|
|
% of Total
|
|
Net Revenues by Platform Mix
|
|
|
|
|
|
|
|
|
|
|
|
Console
|
|
|
$
|
1,440,724
|
|
|
81
|
%
|
|
|
$
|
1,167,623
|
|
83
|
%
|
|
PC and other
|
|
|
|
339,024
|
|
|
19
|
%
|
|
|
|
246,075
|
|
17
|
%
|
|
Total net revenues
|
|
|
|
1,779,748
|
|
|
100
|
%
|
|
|
|
1,413,698
|
|
100
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Change in Deferred Net Revenues
|
|
|
|
|
|
|
|
|
|
|
|
Console
|
|
|
$
|
113,595
|
|
|
|
|
|
$
|
12,687
|
|
|
|
PC and other
|
|
|
|
10,603
|
|
|
|
|
|
|
134,241
|
|
|
|
Total changes in deferred net revenues
|
|
|
|
124,198
|
|
|
|
|
|
|
146,928
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TAKE-TWO INTERACTIVE SOFTWARE, INC. and SUBSIDIARIES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ADDITIONAL DATA
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of Goods Sold-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Software
|
|
|
Cost of Goods
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of Goods Sold-
|
|
|
Development Costs
|
|
|
Sold- Product
|
|
|
Cost of Goods
|
|
|
Selling and
|
|
Three Months Ended March 31, 2017
|
|
|
Net Revenues
|
|
|
Internal Royalties
|
|
|
and Royalties
|
|
|
Costs
|
|
|
Sold- Licenses
|
|
|
Marketing
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As reported
|
|
|
|
$
|
571,556
|
|
|
|
$
|
90,071
|
|
|
|
$
|
116,922
|
|
|
|
$
|
85,787
|
|
|
|
$
|
22,120
|
|
|
|
$
|
38,312
|
|
|
Net effect from deferral and related cost of goods sold
|
|
|
|
(164,429
|
)
|
|
|
|
|
|
|
(67,678
|
)
|
|
|
|
(47,535
|
)
|
|
|
|
(3,072
|
)
|
|
|
|
|
Stock-based compensation
|
|
|
|
|
|
|
|
|
|
(5,083
|
)
|
|
|
|
|
|
|
|
|
|
(2,694
|
)
|
|
Amortization of intangibles
|
|
|
|
|
|
|
|
|
|
(2,630
|
)
|
|
|
|
|
|
|
|
|
|
(1,497
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
General and
|
|
|
Research and
|
|
|
Depreciation and
|
|
|
Interest and
|
|
|
Gain on long-term
|
|
|
|
|
Three Months Ended March 31, 2017
|
|
|
Administrative
|
|
|
Development
|
|
|
Amortization
|
|
|
Other, net
|
|
|
investments
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As reported
|
|
|
|
$
|
62,042
|
|
|
|
$
|
36,421
|
|
|
|
$
|
8,378
|
|
|
|
$
|
(392
|
)
|
|
|
$
|
-
|
|
|
|
|
|
Stock-based compensation
|
|
|
|
(16,047
|
)
|
|
|
|
(2,634
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-cash amortization of discount on Convertible Notes
|
|
|
|
|
|
|
|
|
|
|
|
|
3,351
|
|
|
|
|
|
|
|
|
Acquisition related expenses
|
|
|
|
(1,598
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of intangibles
|
|
|
|
|
|
|
(989
|
)
|
|
|
|
(78
|
)
|
|
|
|
|
|
|
|
|
|
|
Proceeds from sale of long-term investments
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of Goods Sold-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Software
|
|
|
Cost of Goods
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of Goods Sold-
|
|
|
Development Costs
|
|
|
Sold- Product
|
|
|
Cost of Goods
|
|
|
Selling and
|
|
Three Months Ended March 31, 2016
|
|
|
Net Revenues
|
|
|
Internal Royalties
|
|
|
and Royalties
|
|
|
Costs
|
|
|
Sold- Licenses
|
|
|
Marketing
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As reported
|
|
|
|
$
|
377,206
|
|
|
|
$
|
72,552
|
|
|
|
$
|
71,352
|
|
|
|
$
|
46,554
|
|
|
|
$
|
18,999
|
|
|
|
$
|
38,020
|
|
|
Net effect from deferral and related cost of goods sold
|
|
|
|
(34,694
|
)
|
|
|
|
|
|
|
(9,601
|
)
|
|
|
|
(10,682
|
)
|
|
|
|
(3,370
|
)
|
|
|
|
(2,566
|
)
|
|
Stock-based compensation
|
|
|
|
|
|
|
|
|
|
(2,388
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gain on long-
|
|
|
|
|
General and
|
|
|
Research and
|
|
|
Business
|
|
|
Depreciation and
|
|
|
Interest and
|
|
|
term
|
|
Three Months Ended March 31, 2016
|
|
|
Administrative
|
|
|
Development
|
|
|
Reorganization
|
|
|
Amortization
|
|
|
Other,net
|
|
|
investments
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As reported
|
|
|
|
$
|
44,395
|
|
|
|
$
|
33,308
|
|
|
|
$
|
113
|
|
|
|
$
|
7,338
|
|
|
|
$
|
(6,257
|
)
|
|
|
$
|
2,683
|
|
|
Stock-based compensation
|
|
|
|
(8,998
|
)
|
|
|
|
(1,900
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-cash amortization of discount on Convertible Notes
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
6,003
|
|
|
|
|
|
Impact of business reorganization
|
|
|
|
|
|
|
|
|
|
(113
|
)
|
|
|
|
|
|
|
|
|
|
|
Proceeds from sale of long-term investments
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(2,683
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TAKE-TWO INTERACTIVE SOFTWARE, INC. and SUBSIDIARIES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ADDITIONAL DATA
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of Goods Sold-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Software
|
|
|
Cost of Goods
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of Goods Sold-
|
|
|
Development Costs
|
|
|
Sold- Product
|
|
|
Cost of Goods
|
|
|
Selling and
|
|
Twelve Months Ended March 31, 2017
|
|
|
Net Revenues
|
|
|
Internal Royalties
|
|
|
and Royalties
|
|
|
Costs
|
|
|
Sold- Licenses
|
|
|
Marketing
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As reported
|
|
|
|
$
|
1,779,748
|
|
|
|
$
|
330,782
|
|
|
|
$
|
335,675
|
|
|
|
$
|
255,914
|
|
|
|
$
|
100,588
|
|
|
|
$
|
285,453
|
|
|
Net effect from deferral and related cost of goods sold
|
|
|
|
124,198
|
|
|
|
|
-
|
|
|
|
|
(6,709
|
)
|
|
|
|
2,536
|
|
|
|
|
8,167
|
|
|
|
|
|
Stock-based compensation
|
|
|
|
|
|
|
|
|
|
(21,056
|
)
|
|
|
|
|
|
|
|
|
|
(9,963
|
)
|
|
Amortization of intangibles
|
|
|
|
|
|
|
|
|
|
(2,630
|
)
|
|
|
|
|
|
|
|
|
|
(1,497
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
General and
|
|
|
Research and
|
|
|
Depreciation and
|
|
|
Interest and
|
|
|
Gain on long-term
|
|
|
|
|
Twelve Months Ended March 31, 2017
|
|
|
Administrative
|
|
|
Development
|
|
|
Amortization
|
|
|
Other, net
|
|
|
investments
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As reported
|
|
|
|
$
|
211,409
|
|
|
|
$
|
137,915
|
|
|
|
$
|
30,707
|
|
|
|
$
|
(15,690
|
)
|
|
|
$
|
1,350
|
|
|
|
|
|
Stock-based compensation
|
|
|
|
(42,908
|
)
|
|
|
|
(7,952
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-cash amortization of discount on Convertible Notes
|
|
|
|
|
|
|
|
|
|
|
|
|
21,254
|
|
|
|
|
|
|
|
|
Acquisition related expenses
|
|
|
|
(1,916
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of intangibles
|
|
|
|
|
|
|
(989
|
)
|
|
|
|
(78
|
)
|
|
|
|
|
|
|
|
|
|
|
Proceeds from sale of long-term investments
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1,350
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of Goods Sold-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Software
|
|
|
Cost of Goods
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of Goods Sold-
|
|
|
Development Costs
|
|
|
Sold- Product
|
|
|
Cost of Goods
|
|
|
Selling and
|
|
Twelve Months Ended March 31, 2016
|
|
|
Net Revenues
|
|
|
Internal Royalties
|
|
|
and Royalties
|
|
|
Costs
|
|
|
Sold- Licenses
|
|
|
Marketing
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As reported
|
|
|
|
$
|
1,413,698
|
|
|
|
$
|
328,610
|
|
|
|
$
|
223,512
|
|
|
|
$
|
200,206
|
|
|
|
$
|
61,545
|
|
|
|
$
|
198,309
|
|
|
Net effect from deferral and related cost of goods sold
|
|
|
|
146,928
|
|
|
|
|
|
|
|
(1,237
|
)
|
|
|
|
11,622
|
|
|
|
|
30,012
|
|
|
|
|
(9,425
|
)
|
|
Stock-based compensation
|
|
|
|
|
|
|
|
|
|
(15,323
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gain on long-
|
|
|
|
|
General and
|
|
|
Research and
|
|
|
Business
|
|
|
Depreciation and
|
|
|
Interest and
|
|
|
term
|
|
Twelve Months Ended March 31, 2016
|
|
|
Administrative
|
|
|
Development
|
|
|
Reorganization
|
|
|
Amortization
|
|
|
Other, net
|
|
|
investments
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As reported
|
|
|
|
$
|
192,452
|
|
|
|
$
|
119,807
|
|
|
|
$
|
71,285
|
|
|
|
$
|
28,800
|
|
|
|
$
|
(30,205
|
)
|
|
|
$
|
2,683
|
|
|
Stock-based compensation
|
|
|
|
(40,323
|
)
|
|
|
|
(4,926
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-cash amortization of discount on Convertible Notes
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
23,457
|
|
|
|
|
|
Impact of business reorganization
|
|
|
|
(1,228
|
)
|
|
|
|
|
|
|
(71,285
|
)
|
|
|
|
|
|
|
|
|
|
|
Proceeds from sale of long-term investments
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(2,683
|
)
|
View source version on businesswire.com: http://www.businesswire.com/news/home/20170523005265/en/
Source: Take-Two Interactive
Take-Two Interactive Software, Inc.
Investor Relations:
Henry
A. Diamond, 646-536-3005
Senior Vice President
Investor
Relations & Corporate Communications
Henry.Diamond@take2games.com
or
Corporate
Press:
Alan Lewis, 646-536-2983
Vice President
Corporate
Communications & Public Affairs
Alan.Lewis@take2games.com
|
