Take-Two Interactive Software said on Thursday it expects net bookings to grow in fiscal years 2026 and 2027, as the videogame publisher gears up for the launch of its long-awaited Grand Theft Auto VI next year.
Shares of the New York-based company rose more than five percent 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 (roughly Rs. 11,921 crore) and $1.47 billion (roughly Rs. 12,341 crore) for the second quarter, while analysts on average estimate $1.47 billion (roughly Rs. 12,341 crore), 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 (roughly Rs. 10,242 crore), missing estimates of $1.25 billion (roughly Rs. 10,494 crore)
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.
© Thomson Reuters 2024
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