Earnings Results: Take-Two revises outlook lower to account for Zynga, shifts in release schedule

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Take-Two Interactive Software Inc. shares declined after hours Monday after the videogame publisher reported sales that came in under Wall Street estimates, and revised its outlook to account for its recent acquisition of Zynga.

Known for its “Grand Theft Auto” and “NBA 2K” titles, Take-Two 

reported a first-quarter loss of $104 million, or 76 cents a share, versus net income of $152.3 million, or $1.30 a share, in the year-ago period.

Revenue increased to $1.1 billion from $813.3 million in the year-ago quarter, while bookings came in at $1 billion compared with $711.4 million in the year-ago period.

Analysts expected Take-Two to report first-quarter unadjusted earnings of 84 cents a share, adjusted earnings of 87 cents a share, revenue of $1.21 billion and bookings of $1.1 billion. Take-Two does not provide adjusted earnings information, instead providing some financial information that can be used to calculate that number.

For the first quarter, Take-Two had forecast unadjusted earnings of 80 cents to 90 cents a share, revenue of $810 million to $860 million, and bookings of $700 million to $750 million, prior to the close of its acquisition of Zynga.

Shares fell 7% in after-hours trading immediately following the release of the results, after closing down 1.3% at $125.51.

“We remain exceedingly optimistic about the long-term growth potential for the mobile industry, as well as our ability to create greater shareholder value as a combined entity with Zynga,” said Strauss Zelnick, Take-Two’s chief executive, in a statement. “Our creative teams are actively discussing potential new projects and we remain committed to delivering over $500 million of annual net bookings opportunities over time.”

The company revised its outlook to include Zynga. For the second quarter, Take-Two said it expects a loss of 96 cents to 86 cents a share on revenue of $1.37 billion to $1.42 billion. Analysts had estimated earnings of $1.50 a share on revenue of $1.73 billion.

For the year, Take-Two said it expects a loss of $2.75 to $2.50 a share on revenue of $5.73 billion to $5.83 billion. Analysts estimate earnings of $5.37 a share on revenue of $6.22 billion.

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