Take-Two losses grow to $50m

GTA IV sales not enough to cover mounting losses

New York publisher Take-Two is still enjoying the success of Grand Theft Auto IV several months after its release, but sales of the game weren't enough to counter mounting losses.

Revenues for the quarter ended January 31 were $256.8 million, up from $240.4 million for the same quarter a year ago. Sales drivers were GTA IV, Carnival Games, NBA 2K9 and Midnight Club: Los Angeles. The firm beat the top end of sales guidance, which was set at $225 million.

The company said it has shipped over 13 million units of GTA IV worldwide as of the end of the quarter.

Net loss widened to $50.4 million, up from $38 million a year ago. Take-Two pointed to higher marketing, legal, and research and development expenses.

Titles currently known to be in the works at Take-Two include the next GTA IV downloadable content, GTA: Chinatown Wars, BioShock 2 and Red Dead Redemption, among others.

Chairman Strauss Zelnick warned of continuing economic hardship. "Looking to the balance of the year, the economy remains challenging and uncertain, and our industry will not be immune to this environment.

"Consumers will continue to be highly selective in their purchases, including interactive entertainment. We need to deliver innovative, exceptionally compelling products to compete for this more limited consumer spending, and we are confident in our ability to do so."

Take-Two also provided initial non-GAAP revenue guidance of $200-$220 million, with a loss of 10-20 cents for the April quarter.

Full-year non-GAAP earnings guidance is in the range of breakeven to 20 cents per share on $1.1 to $1.25 billion in sales.

Article supplied by Edge-Online