Take-Two Reports Reduced Loss, Title Slips

New York-headquartered game publisher and developer Take-Two Interactive Software announced its financial results for the quarter ending April 30th, 2005, and posted a reduced net loss for the quarter of $8.2 million, compared to a net loss of $14.6 million during the same time last year, a reasonable performance in a traditionally quiet quarter for game companies. The company attributed its increased second quarter sales to the launch of Midnight Club 3: DUB Edition for PlayStation 2 and Xbox and Major League Baseball 2K5 for PlayStation 2 and Xbox, as well as continued consumer demand for Grand Theft Auto: San Andreas title for PlayStation 2. Sales in the second quarter increased 45% to $222.1 million, compared to $153.4 million in the second quarter of fiscal 2004. However, Take-Two, which comprises publishing brands including Rockstar Games, 2K Games, 2K Sports, the Global Star 'value' brand and the Jack Of All Games distributor, warned of an unexpected loss for the third fiscal quarter, ending July 31st, because of slipping release dates for several key games into the fourth fiscal quarter (August to October). Chief among those slipping into Q4 was Grand Theft Auto: Liberty City Stories for the PSP, likely to be a big seller for the company when released. Also falling back was the oft-delayed Call of Cthulhu: Dark Corners of the Earth for PlayStation 2 and Xbox, as well as a conversion of formerly Microsoft-owned tennis title Top Spin for PlayStation 2. Take-Two now expects $205 to $215 million in net sales and a net loss per share of 5 to 10 cents for the quarter. Nonetheless, key titles for Take-Two's third quarter include Grand Theft Auto: San Andreas for Xbox and PC, which will be in stores in North America on June 7th and in Europe on June 10th, as well as Midnight Club 3: DUB Edition for the PSP, which will be in stores in North America on June 28th. Sid Meier's Pirates! for Xbox and Charlie and the Chocolate Factory for multiple platforms (accompanying the Tim Burton/Johnny Depp movie adaptation) will also debut during this time period. Paul Eibeler, President and Chief Executive Officer, commented with regard to the results: "We were pleased with the performance of our second quarter releases, as well as the continued success of Grand Theft Auto: San Andreas." He continued: "With eight titles already announced for Xbox 360 and more in development for Xbox 360, PlayStation 3 and the PSP, along with our pipeline of products for the large installed base of current generation hardware, we are well on our way to sustaining a leadership position as we enter the next cycle."