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Shares of the New York-based company rose more than 5% in
extended trading.
"Grand Theft Auto" is one of Take-Two's most popular properties,
with the franchise having accumulated billions of dollars in
revenue since its inception in the late-nineties.
The company in May had narrowed the release window for "GTA VI"
to fall of 2025, setting the stage for the launch of the next
installment of one of the most popular video game franchises in
the world.
It said "Grand Theft Auto V", one of the most profitable
videogames ever, sold over 200 million units worldwide.
Wedbush Securities analyst Michael Pachter expects the growth in
bookings over the next two fiscal years to come from "GTA VI".
Take-Two said in May it has around 40 titles in its development
pipeline through fiscal 2027.
The company, however, forecast its second-quarter bookings below
analysts' expectations, as it navigates soft in-game spending on
live-service titles amid inflationary pressures.
It expects bookings to be between $1.42 billion and $1.47
billion for the second quarter, while analysts on average
estimate $1.47 billion, according to LSEG data.
Take-Two said it saw a decline in recurrent consumer spending
for "GTA Online" in the first quarter, signaling that after
years of consistent growth, player engagement rates for the
live-service title might be slowing down.
First-quarter bookings were at $1.22 billion, missing estimates
of $1.25 billion.
The company also said it does not see any impact on titles in
development from the ongoing videogame performers strike,
echoing remarks from peer Electronic Arts last week.
Take-Two posted a surprise profit of 5 cents per share on an
adjusted basis, versus estimates of a loss of 2 cents.
(Reporting by Zaheer Kachwala in Bengaluru; Editing by Shilpi
Majumdar)
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