Take-Two Interactive Q1 Profit Misses Estimates; Non-GAAP Net Revenue Up 142%

(RTTNews) - Take-Two Interactive Software, Inc. (TTWO) reported a first quarter net loss of $67.0 million, or $0.81 per share, compared to a loss of $35.4 million, or $0.45 per share, for the year-ago period. The company noted that its GAAP results for first quarter 2016 reflect the deferral of net revenue and cost of goods sold related to sell-in of certain titles during the quarter. Non-GAAP net income was $34.2 million, or $0.31 per share, for the quarter.

On average, 16 analysts polled by Thomson Reuters expected the company to report profit per share of $0.36 for the quarter. Analysts' estimates typically exclude special items.

GAAP net revenue grew 119% to $275.3 million, compared to $125.4 million for fiscal first quarter 2015. Non-GAAP net revenue grew 142% to $366.4 million, compared to $151.6 million for the year-ago period. Analysts expected revenue of $351.41 million for the quarter.

Non-GAAP net revenue from digitally-delivered content grew 139% year-over-year to $254.0 million.

Strauss Zelnick, CEO of Take-Two, said: "These results were driven by strong consumer demand for Grand Theft Auto V, NBA 2K15 and an array of other titles, along with better-than-expected growth in recurrent consumer spending."

The company reiterated its financial outlook for the fiscal year ending March 31, 2016, and provided its initial financial outlook for the fiscal second quarter 2016, ending September 30, 2015.

The company expects second-quarter non-GAAP net revenue in the range of $275 to $325 million; and non-GAAP net income per share in the range of $0.05 to $0.15. Analysts expect the company to report a loss per share of $0.22 on revenue of $189.33 million.