Take-Two reported a decline of 18% in Q2 net bookings, totaling $1.6 billion, influenced by NBA 2K27 failing to meet projections. However, pre-orders for GTA 6 have significantly exceeded expectations
In the recent financial report, Take-Two Interactive disclosed an 18% fall in net bookings, totaling $1.60 billion, along with a 16% decline in net revenue, which is now $1.50 billion.
The company's net bookings were slightly lower than the anticipated range of $1.62 billion to $1.67 billion. While NBA 2K27's launch was the second most successful in the franchise's history for net bookings, it did not meet projected expectations for the quarter.
The publisher has maintained its annual net bookings forecast at between $8 billion and $8.2 billion, with a scheduled release of Grand Theft Auto 6 on November 19.
The numbers
- Net revenue: $1.50 billion (a 16% decrease from last year)
- Net loss: $54 million (down from a $133.9 million loss in the previous year)
- Total net bookings: $1.60 billion (an 18% decline from last year)
The highlights
Since its release on September 4, NBA 2K27 has sold more than 4 million copies. The company noted that the launch period was particularly busy and anticipates increased net bookings and user engagement in the latter part of the fiscal year as more content is rolled out post-launch.
The Grand Theft Auto franchise surpassed expectations during the quarter. Grand Theft Auto 5 sales are approaching 235 million units, with both ongoing consumer spending and GTA+ monthly membership growing in double-digit percentages.
Pre-orders for Grand Theft Auto 6 are exceeding initial projections significantly. In anticipation of the game's release, operational costs are expected to rise around 21% year-over-year in the third quarter mainly due to marketing efforts.
The Borderlands series has exceeded 100 million units in sales.
The mobile sector performed as planned. Despite a drop in net bookings for Color Block Jam compared to a peak last year, Toon Blast saw a 4% increase and Words With Friends rose by 6%, supported by a partnership with Wheel of Fortune. Released in China with Tencent, NBA 2K All-Star surpassed 11 million registered users.
"With only ten days remaining until the Grand Theft Auto VI launch and pre-orders surpassing all previous records, we expect a landmark year for Take-Two," stated Strauss Zelnick, CEO of Take-Two.
For the upcoming quarter, Take-Two forecasts net bookings to be in the range of $3.35 billion to $3.5 billion, compared to $1.76 billion during the same period last year. The company has raised its full-year GAAP net revenue estimate to between $7.98 billion and $8.18 billion, an increase from the previous guidance of between $7.9 billion and $8.1 billion.