take two The stock fell more than 15% in extended trading on Monday after the company released its second-quarter 2023 results. It said its outlook for the current quarter and for fiscal 2023 would be lower than expected.
Here’s how the company did it:
- Loss: Loss of $1.54 per share
- Revenue: $1.5 billion, vs $1.55 billion as forecast by analysts, according to Refinitiv
Take-Two said in a statement that its net bookings for fiscal 2023 will be between $5.4 billion and $5.5 billion, which is lower than the company’s previous expectation of $5.77 billion at midpoint. -journey.
Analysts polled by Refinitiv expected $5.88 billion in sales for the year. Take-Two’s net bookings mainly include digital game sales or sales to wholesalers, as well as license fees and merchandise.
He also said he expects a fiscal year ending March 31, 2023, a net loss of between $674 million and $631 million, worse than forecasts of a net loss between $438 million and $398 million than it provided in its first-quarter results.
Take-Two’s reduced outlook comes as gaming slows, and particularly gaming on mobile devices like smartphones, after two years of strong sales and engagement thanks to the Covid-19 pandemic. Game sales are also being hit by falling consumer confidence in the face of rising interest rates and a possible recession.
“Our reduced forecast reflects changes in our pipeline, currency fluctuations and a more cautious view of the current macro environment, particularly in mobile,” Take-Two CEO Strauss Zelnick said in a statement.
Take-Two is known for games such as “Grand Theft Auto” and its “NBA 2K” series. In September, a hacker released files including the source code for the company’s highly anticipated unreleased title “Grand Theft Auto 6.”
Take-Two also owns mobile giant Zynga, known for “Words with Friends,” after buying it for $12.7 billion earlier this year.