Take-Two Interactive Software, Inc. (TTWO) Bundle
A Brief History of Take-Two Interactive
Take-Two Interactive, a leading video game publisher, has evolved significantly since its inception. Founded in 1993, the company has established a strong presence in the gaming industry, primarily through its subsidiaries Rockstar Games and 2K Games.
Financial Performance in 2024
For the three months ended September 30, 2024, Take-Two reported total net revenue of $1,353.1 million, an increase from $1,299.2 million in the same period the previous year, representing a growth of 4.1%. The gross profit for the same period was $727.9 million, reflecting a gross profit margin of 53.8% compared to 32.0% in the prior year.
| Financial Metric | Q2 2024 | Q2 2023 | Year-over-Year Change |
|---|---|---|---|
| Total Net Revenue | $1,353.1 million | $1,299.2 million | +4.1% |
| Gross Profit | $727.9 million | $415.4 million | +75.2% |
| Operating Expenses | $1,025.1 million | $959.1 million | +6.9% |
| Net Loss | ($365.5 million) | ($543.6 million) | Improvement |
Revenue Breakdown
In terms of revenue by platform for Q2 2024, mobile games generated $740.2 million (54.7%), console games contributed $491.1 million (36.3%), and PC and others accounted for $121.8 million (9.0%).
| Platform | Q2 2024 Revenue | Percentage of Total Revenue |
|---|---|---|
| Mobile | $740.2 million | 54.7% |
| Console | $491.1 million | 36.3% |
| PC and Other | $121.8 million | 9.0% |
Cost Structure
For the three months ended September 30, 2024, the cost of revenue was $625.2 million, resulting in a gross profit of $727.9 million. Operating expenses totaled $1,025.1 million, with selling and marketing expenses of $461.3 million and general and administrative expenses of $253.0 million.
| Expense Category | Q2 2024 Amount | Q2 2023 Amount |
|---|---|---|
| Cost of Revenue | $625.2 million | $883.8 million |
| Selling and Marketing | $461.3 million | $334.6 million |
| General and Administrative | $253.0 million | $178.3 million |
Market Trends and Strategic Developments
Take-Two has been actively expanding its portfolio through acquisitions and product launches. The release of new titles such as Match Factory! and Toon Blast has boosted revenues, contributing significantly to the overall growth.
As of September 30, 2024, Take-Two's cash and cash equivalents totaled $1,319.6 million, reflecting a strong liquidity position for future investments and operational stability.
The company's long-term debt stood at $3,076.0 million, with various notes maturing between 2026 and 2034, indicating a structured approach to debt management.
Take-Two continues to navigate market challenges while leveraging its strong brand portfolio and expanding digital distribution capabilities to enhance revenue streams.
A Who Owns Take-Two Interactive Software, Inc. (TTWO)
Ownership Structure
As of 2024, Take-Two Interactive Software, Inc. (TTWO) has a diverse ownership structure that includes institutional investors, individual shareholders, and company executives.
Major Shareholders
The following table shows the major shareholders of Take-Two Interactive as of the latest available data:
| Shareholder | Ownership Percentage | Shares Owned (in millions) |
|---|---|---|
| Vanguard Group, Inc. | 8.5% | 16.8 |
| BlackRock, Inc. | 8.1% | 16.3 |
| State Street Corporation | 4.5% | 9.0 |
| ZelnickMedia Corporation (Executive Chairman Strauss Zelnick) | 3.4% | 6.8 |
| Other Institutional Investors | 18.0% | 36.0 |
| Individual Shareholders | 57.5% | 115.0 |
Institutional Ownership
Institutional ownership remains significant, with institutions holding approximately 43% of the total shares outstanding. The top three institutional investors are:
- Vanguard Group, Inc. - 8.5%
- BlackRock, Inc. - 8.1%
- State Street Corporation - 4.5%
Executive Compensation and Ownership
Key executives hold substantial shares in the company. The following table outlines the compensation and share ownership of key executives:
| Executive | Title | Annual Compensation (in millions) | Shares Owned (in millions) |
|---|---|---|---|
| Strauss Zelnick | Executive Chairman & CEO | $3.3 | 6.8 |
| Karl Slatoff | President | $2.5 | 3.2 |
| Other Executives | Various | $5.0 | 10.0 |
Recent Changes in Share Ownership
As of September 30, 2024, the total number of shares outstanding was 199.2 million, with a reported treasury stock of 23.7 million shares. The total stockholders' equity stood at $5.798 billion, reflecting the company's financial health and performance in the market.
Market Performance
Take-Two Interactive's stock performance has seen fluctuations, with a reported net loss of $365.5 million for the three months ended September 30, 2024, compared to a net loss of $543.6 million in the same period the previous year. The company's total net revenue for this period was $1.353 billion, up from $1.299 billion year-over-year.
Conclusion of Ownership Analysis
Take-Two Interactive Software, Inc. continues to maintain a robust ownership structure with significant institutional and executive participation, reflecting confidence in its long-term growth potential and market strategies.
Take-Two Interactive Software, Inc. (TTWO) Mission Statement
Overview of Mission Statement
Take-Two Interactive Software, Inc. aims to be the most innovative, creative, and valuable entertainment company in the world. The mission emphasizes delivering the highest quality interactive entertainment experiences to consumers through its diverse portfolio of video games and related products.
Financial Performance Summary
As of September 30, 2024, Take-Two Interactive reported significant financial metrics showcasing its performance in the gaming industry. The company achieved:
| Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Total Net Revenue | $1,353.1 million | $1,299.2 million | 4.1% |
| Gross Profit | $727.9 million | $415.4 million | 75.2% |
| Net Loss | ($365.5 million) | ($543.6 million) | 32.8% |
| Loss per Share | ($2.08) | ($3.20) | 35.0% |
Revenue Breakdown
The revenue streams for Take-Two Interactive highlight its operational focus, particularly on mobile and digital channels:
| Revenue Source | Q3 2024 | Q3 2023 |
|---|---|---|
| Mobile | $740.2 million (54.7%) | $646.2 million (49.7%) |
| Console | $491.1 million (36.3%) | $546.7 million (42.1%) |
| PC and Other | $121.8 million (9.0%) | $106.3 million (8.2%) |
Recurrent Consumer Spending (RCS)
Recurrent Consumer Spending, which includes revenue from in-game purchases, virtual currencies, and content, has been a vital part of the revenue model:
| Type | Q3 2024 | Q3 2023 |
|---|---|---|
| RCS Revenue | $1,079.0 million (79.7%) | $1,000.4 million (77.0%) | Full Game and Other | $274.1 million (20.3%) | $298.8 million (23.0%) |
Operating Expenses
The operational costs incurred by Take-Two Interactive reflect its commitment to market presence and product development:
| Expense Type | Q3 2024 | Q3 2023 |
|---|---|---|
| Selling and Marketing | $461.3 million (34.1%) | $334.6 million (25.8%) |
| Research and Development | $246.7 million (18.2%) | $232.1 million (17.9%) |
| General and Administrative | $253.0 million (18.7%) | $178.3 million (13.7%) |
Market and Strategic Positioning
Take-Two Interactive focuses on expanding its market share through strategic acquisitions and innovative game development. The acquisition of Gearbox in June 2024 is a key strategic move to enhance its product offerings.
Conclusion on Mission Impact
The mission statement of Take-Two Interactive is reflected through its financial performance and strategic initiatives, underscoring its commitment to delivering high-quality entertainment while navigating the challenges of the gaming market.
How Take-Two Interactive Software, Inc. (TTWO) Works
Company Overview
Take-Two Interactive Software, Inc. (TTWO) operates as a global publisher of interactive entertainment software, including video games for console, PC, and mobile platforms. The company is known for its popular franchises such as Grand Theft Auto, NBA 2K, and Red Dead Redemption.
Financial Performance
For the six months ended September 30, 2024, Take-Two reported:
| Metric | 2024 | 2023 | Change |
|---|---|---|---|
| Total Net Revenue | $2,691.3 million | $2,583.9 million | $107.4 million (4.2%) |
| Cost of Revenue | $1,192.3 million | $1,489.3 million | ($297.0 million) (-19.9%) |
| Gross Profit | $1,499.0 million | $1,094.6 million | $404.4 million (36.9%) |
| Net Loss | ($627.5 million) | ($749.6 million) | $122.1 million (16.3%) |
Revenue Breakdown
For the three months ended September 30, 2024, revenue was distributed as follows:
| Platform | Net Revenue | % of Total Revenue |
|---|---|---|
| Mobile | $740.2 million | 54.7% |
| Console | $491.1 million | 36.3% |
| PC and Other | $121.8 million | 9.0% |
Operating Expenses
For the six months ended September 30, 2024, the operating expenses were:
| Expense Type | Amount (in millions) | % of Net Revenue |
|---|---|---|
| Selling and Marketing | $892.7 | 33.2% |
| Research and Development | $466.5 | 17.3% |
| General and Administrative | $463.5 | 17.2% |
| Depreciation and Amortization | $92.1 | 3.4% |
| Total Operating Expenses | $1,981.1 | 73.6% |
Net Bookings
For the three months ended September 30, 2024, net bookings were reported as:
| Metric | Amount (in millions) | Change |
|---|---|---|
| Net Bookings | $1,474.9 | $30.0 million (2.1%) |
Recurrent Consumer Spending
Recurrent consumer spending (RCS) for the six months ended September 30, 2024:
| Metric | Amount (in millions) | % of Net Revenue |
|---|---|---|
| RCS Revenue | $2,176.7 | 80.9% |
Geographic Revenue Distribution
Revenue by geographic region for the six months ended September 30, 2024:
| Region | Net Revenue (in millions) |
|---|---|
| United States | $1,635.0 |
| International | $1,056.3 |
Stockholder's Equity
As of September 30, 2024, stockholder's equity was structured as follows:
| Component | Amount (in millions) |
|---|---|
| Common Stock | $2.0 |
| Additional Paid-in Capital | $10,063.4 |
| Treasury Stock | ($1,020.6) |
| Retained Earnings/(Accumulated Deficit) | ($3,207.4) |
| Total Stockholder's Equity | $5,798.5 |
Loss Per Share
For the three months ended September 30, 2024, loss per share metrics were:
| Type | Amount |
|---|---|
| Basic and Diluted Loss per Share | ($2.08) |
How Take-Two Interactive Software, Inc. (TTWO) Makes Money
Revenue Streams
Take-Two Interactive Software, Inc. generates revenue through multiple streams, primarily from video game sales, recurrent consumer spending, and digital distribution channels. As of the six months ended September 30, 2024, the total net revenue was $2,691.3 million, marking an increase from $2,583.9 million in the previous year.
Net Revenue by Platform
| Platform | Three Months Ended September 30, 2024 (in millions) | Three Months Ended September 30, 2023 (in millions) | Six Months Ended September 30, 2024 (in millions) | Six Months Ended September 30, 2023 (in millions) |
|---|---|---|---|---|
| Mobile | $740.2 | $646.2 | $1,462.7 | $1,326.2 |
| Console | $491.1 | $546.7 | $1,000.0 | $1,051.0 |
| PC and Other | $121.8 | $106.3 | $228.6 | $206.7 |
| Total Net Revenue | $1,353.1 | $1,299.2 | $2,691.3 | $2,583.9 |
Net Revenue by Content Type
| Content Type | Three Months Ended September 30, 2024 (in millions) | Three Months Ended September 30, 2023 (in millions) | Six Months Ended September 30, 2024 (in millions) | Six Months Ended September 30, 2023 (in millions) |
|---|---|---|---|---|
| Recurrent Consumer Spending | $1,079.0 | $1,000.4 | $2,176.7 | $2,068.8 |
| Full Game and Other | $274.1 | $298.8 | $514.6 | $515.1 |
| Total Net Revenue | $1,353.1 | $1,299.2 | $2,691.3 | $2,583.9 |
Digital Distribution and Online Revenue
Digital online channels accounted for 96.4% of total net revenue in the six months ended September 30, 2024, amounting to $2,595.5 million, compared to $2,479.7 million in 2023. This shift indicates a growing reliance on digital sales as physical retail continues to decline.
Operating Expenses
| Expense Type | Three Months Ended September 30, 2024 (in millions) | Three Months Ended September 30, 2023 (in millions) | Six Months Ended September 30, 2024 (in millions) | Six Months Ended September 30, 2023 (in millions) |
|---|---|---|---|---|
| Selling and Marketing | $461.3 | $334.6 | $892.7 | $734.0 |
| Research and Development | $246.7 | $232.1 | $466.5 | $470.7 |
| General and Administrative | $253.0 | $178.3 | $463.5 | $376.2 |
| Total Operating Expenses | $1,025.1 | $959.1 | $1,981.1 | $1,842.6 |
Loss and Profit Margins
For the six months ended September 30, 2024, Take-Two reported a gross profit of $1,499.0 million, translating to a gross profit margin of 55.8%, compared to 42.3% in the previous year. The increase in gross profit margin is attributed to lower amortization of intangible assets and a decrease in internal royalties.
Geographic Revenue Distribution
| Region | Three Months Ended September 30, 2024 (in millions) | Three Months Ended September 30, 2023 (in millions) | Six Months Ended September 30, 2024 (in millions) | Six Months Ended September 30, 2023 (in millions) |
|---|---|---|---|---|
| United States | $814.5 | $795.6 | $1,635.0 | $1,599.5 |
| International | $538.6 | $503.6 | $1,056.3 | $984.4 |
| Total | $1,353.1 | $1,299.2 | $2,691.3 | $2,583.9 |
Future Outlook
The company anticipates continued growth in mobile gaming and recurrent consumer spending, particularly with the upcoming release of new titles, including the highly anticipated Grand Theft Auto VI, which is expected to drive significant future revenue.
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Resources:
- Take-Two Interactive Software, Inc. (TTWO) Financial Statements – Access the full quarterly financial statements for Q2 2025 to get an in-depth view of Take-Two Interactive Software, Inc. (TTWO)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Take-Two Interactive Software, Inc. (TTWO)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.