Take Two second quarter loss shaved by catalog and digital sales

By Garnett Lee, Nov 08, 2011 5:15pm PST

In preface to discussing financial results for the company's second financial quarter, Take Two Charmin and CEO Strauss Zelnick said, "Our results for the second quarter mark 8th consecutive period in which we've met or exceeded our financial outlook." While it may have been better than expected, the $107M in revenue amounted to less than half the $245M figure from the same period last year. While a year ago the company had Mafia 2 and Civilization V to lead the sales charge, this year sales of older "catalog" titles accounted for 83 percent of the revenue. Zelnick cited this performance as a sign of strength for their creative team and its ability to create highly rated games that maintain prolonged demand from consumers.

Digital sales contributed a healthy portion of the second quarter earnings, kicking in some $27.3M primarily through digital sales of Civilization V and add-on DLC for key titles. Zelnick declined to comment specifically on the success of tools such as the online pass for L.A. Noire but did confirm the company's commitment to grow its digital offerings. Likewise, he expressed the company's satisfaction with Civ World, the social version of the franchise launched on Facebook, and that further plans in the social games space are in the works.

Take Two expects continued success over the remainder of its fiscal year and to post a profit at its conclusion. In addition to what Zelnick termed solid demand for NBA 2K12, the company has a new 'Complete Edition' of L.A. Noire launching on PC, PS3, and Xbox 360, and three new release titles early next year--The Darkness 2, MLB 2K12, and Max Payne 3. One final figure emphasizes the importance of Rockstar to the overall health of Take Two. When all is said and done, the publisher expects its fiscal 2012 revenue by studio to break down to 54 percent Rockstar, 20 percent 2K Games, 21 percent 2K Sports, and 5 percent 2K Play.

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