Take-Two is reporting a sizeable year-over-year increase in revenue at the close of its first quarter, a jump no doubt driven by rising consumer recurrent spending and, as is the case for other companies, play habits influenced by the ongoing COVID-19 pandemic.
The company as a whole reported $831.1 million in GAAP net revenue for the quarter ending June 30, a 54 percent increase from the same period the year prior. Net revenue from digital sources made up the bulk of that at $726.2 million for the quarter, up 70 percent from last year’s $427.8 million.
The usual cast of Take-Two titles are credited with driving this increase, but CEO Strauss Zelnick calls out NBA 2K20, Grand Theft Auto V/Online, Red Dead Redemption 2/Online, and Social Point’s mobile games as titles that outperformed expectations and had a particular impact on Q1.
“With the strongest development pipeline in the history of the company and our ongoing investment in emerging markets, platforms and business models, Take-Two is exceedingly well positioned to capitalize on the many positive trends in our industry and to generate growth and margin expansion over the long-term,” says Zelnick.
Recurrent consumer spending (or income sourced from the sale of virtual currency, add-on content, and in-game purchases) increased by 52 percent year-over-year and was ultimately responsible for 58 percent of the quarter’s total revenue.
Like other companies that reaped better-than-expected Q1s, Take-Two Interactive has raised its full-year guidance after just one quarter and now expects to close Fiscal 2021 with GAAP net revenue between $750 million and $800 million and GAAP net income between $98 million and $110 million.
“With more people staying at home, we have experienced, and are continuing to experience, heightened levels of engagement and Net Bookings growth-to-date,” reads a statement from the company. “The full extent of the impact of the COVID-19 pandemic to our business, operations and financial results will depend on numerous evolving factors that we are not able to predict.”