Take-Two (TTWO.US) Q2 revenue declined and losses narrowed. GTA VI's immediate pre-sale was “unprecedented” and rose more than 4% after the market

The Zhitong Finance App learned that US game publisher Take-Two Interactive (TTWO.US) announced the results for the second quarter of the 2027 fiscal year (ending September 30) after the market on November 9 EST. Financial reports showed that net bookings for the quarter were US$1,600 million, down 18% year on year; GAAP net revenue was US$1.50 billion, down 15.4% year on year. GAAP net loss of $54 million and loss per diluted share of $0.29 per diluted share was significantly narrower than the loss of $0.73 per share in the same period last year.

The company lacked major new releases this quarter, mainly supported by NBA 2K27 (released on September 4) and GTA Online's continued operation support. The month-on-month decline in performance is expected. “NBA 2K27,” which launched in September, sold 4 million copies, falling short of Take-Two's sales expectations, and also dragged down pre-order revenue for the second quarter of FY2027 until September 30. Recurring consumer spending fell 9% year over year, accounting for 81% of total net bookings. Judging from the quarterly performance, the loss of $0.29 per share was significantly better than the market's consensus forecast (loss of about $0.90 per share), but the net revenue of US$1.60 billion fell short of the market's expectations of about US$1.66 billion.

The market focus has completely turned to the upcoming Grand Theft Auto VI (GTA VI). The game is due to be released on November 19 on PS5 and Xbox Series X|S, just 10 days from press date. Chairman and CEO Strauss Zelnick said “GTA VI” pre-sales “continued to reach unprecedented levels,” adding that the company would usher in a “historic year.” The company reiterated its guidance on net bookings of US$8-8.2 billion for the full year of FY2027, and provided guidance for the third fiscal quarter for the first time, implying that GAAP net revenue will “more than double” this quarter, mainly benefiting from GTA VI's sales volume in the second half of the fiscal year.

Zelnick added in an interview on Monday that many players chose to put off their hands on “NBA 2K27” and wait for the upcoming release of “GTA VI.” At the same time, he mentioned that the piling up of new games on the game market in September also dragged down the game's performance; behind the pile, many competitors deliberately avoided launching at the same time as “GTA VI.”

In terms of profit outlook, the company maintained its guidance. The GAAP net profit guideline for the year was US$109-142 million, diluted earnings per share of US$0.57—0.75, and non-GAAP EBITDA guidelines. Operating cash flow is expected to exceed US$1 billion; capital expenditure was raised to approximately US$290 million, mainly due to a real estate purchase plan. The company also suggested that short-term debt rose sharply from $30 million in the same period last year to US$629.2 million, cash and equivalents declined year on year, GTA VI marketing and issuance costs were approaching, and cash flow from operations would be the key to maintaining a stable balance sheet.

Zelnick explained, “With only ten days left until launch, we chose not to adjust our performance guidelines. Once the game is officially launched, we'll be able to grasp more of the real situation.”

In terms of stock prices, TTWO's regular trading closed down 3.48% to $207.40 on November 9, but after the release of financial reports and GTA VI pre-sale statements, it rose more than 4% after the market, reflecting rising market expectations for the GTA VI sale to meet the full year guidelines.