![]() The introduction of new COVID-19 vaccines over the next few months could exacerbate that pressure as more people leave their homes. That pandemic-driven growth was impressive, but Take-Two expects a deceleration in the second half of 2021 as it generates lower digital sales from Red Dead Redemption 2 on PC and Outer Worlds. As a result, Take-Two's net income surged 59% year over year to $188 million in the first half of the year, and investors flocked to the stock. Those big gains were sparked by the pandemic, which accelerated the shift toward online gaming and digital downloads. Digital revenue jumped to 87% of its revenue in the first quarter and 85% in the second quarter. Its recurrent consumer spending rose to 58% of its revenue in the first quarter and 59% in the second quarter. That growth was driven by many of the same games in 2020, with the addition of 2K's remastered Mafia trilogy and PGA Tour 2K21. In the first half of fiscal 2021, Take-Two's revenue rose 20% year over year to $1.67 billion. That growing dependence on higher-margin recurring and digital revenue boosted Take-Two's margins, and its net income rose 21% to $404 million for the full year. Its total revenue from digital deliveries (of both games and in-game content) rose 41% and accounted for 77% of its top line in 2020, up from 63% in 2019. Therefore, many of Take-Two's sticky franchises are locking in gamers and squeezing out more revenue. It's using the same strategy with Red Dead Redemption and its online extension Red Dead Online.Īs a result, Take-Two's recurrent consumer spending rose 29% in 2020 and accounted for 45% of its top line - up from 40% in fiscal 2019. GTA V, for example, was launched back in 2013, but it continues to thrive today with GTA Online. Several of those games weren't launched last year, but online play extended their longevity. Its top growth engines during the year included NBA 2K19, NBA 2K20, Borderlands 3, Grand Theft Auto V and Grand Theft Auto Online, Red Dead Redemption 2 and Red Dead Online, The Outerworlds, WWE SuperCard, WWE 2K20, Civilization VI, and Social Point's mobile games. Its net bookings, which factor in contractual agreements, rose 2% to $2.99 billion. Take-Two's revenue rose 16% year over year to $3.09 billion in fiscal 2020. In fiscal 2020, which ended on March 31, 40% of Take-Two's revenue came from product sales, while the remaining 60% came from its "services and other" segment - which highlights its growing need to constantly monetize games with in-game transactions after they've been sold.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |