Take-Two Has the Earnings Gift that Keeps On Giving
The video game industry has been on fire this year, and Take-Two Interactive Software, Inc. (NASDAQ: TTWO) has been riding that wave higher. Even after announcing that its highly anticipated Red Dead Redemption 2 would be delayed until spring 2018, the stock continued its upward march. Before Take-Two reported its financial results last week, the company's stock had gained 60% so far this year, and it would take strong results to keep that rally going. However, the video game maven responsible for such hits as Grand Theft Auto and NBA 2K17 did not disappoint.
For the just completed quarter, Take-Two reported net revenue that grew to $418.2 million, a 34% increase over the $311.6 million from the prior year quarter. Investors had been expecting revenue of $281 million. Digitally delivered net revenue jumped 56% year over year to $268.2 million, while recurrent consumer spending on virtual currency, downloadable add-on content, and micro-transactions increased 72% year over year, comprising a full 63% of digitally delivered revenue. Grand Theft Auto Online continued to be the single largest contributor to recurrent consumer spending.
Grand Theft Auto:Online was the strongest contributor to recurrent consumer spending. Image source: Rockstar Games.
Source: Fool.com
Take-Two Interactive Stock
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