Zynga’s integration into the group, 39 days before the quarter’s close, is already transforming the character of Take-Two Interactive. If it sees its turnover grow sharply to more than 1 billion euros, it will be thanks in large part to mobile’s revenue share of 34%, compared to 10% before the Zynga acquisition. Game consoles remain the majority, accounting for 55% of the group’s total turnover.
But the costs associated with acquiring a big fish like Zynga are reflected in profits differently, which has turned Take-Two Interactive into a loss for the first time in a long time. As a result, the Strauss Zelnick Group started the fiscal year with a net loss of 102 million euros and expects to lose nearly 400 million euros a year for the full fiscal year ending March 31, 2023.
“We are pleased with Zynga’s contribution during the quarter, which greatly complemented our results”, the CEO commented in his presentation, while acknowledging that the results were not as pleasant as expected, given the low number of major releases and the normalization of engagement two years after the pandemic pushed. .
take two interactive results
period | turnover | Operating income | net income |
---|---|---|---|
April 2021 – June 2021 | 797.6 million euros | 167.2 million euros | 149.4 million euros |
April 2022 – June 2022 | 1.08 billion euros | – 36.6 million euros | – EUR 102 million |
At the same time, the acquisition of Zynga transformed Take-Two Interactive into a publisher with the vast majority of its revenue derived from in-game purchases, and thus from dematerialization. “Recurring consumer spending, which includes virtual currency, add-on content, in-game purchases and in-game advertising, rose 44% and accounted for 75% of total revenue. Digitally generated revenue increased 40% to $1.0 billion from $740.8 million in the fiscal first quarter last year, and accounted for 94% of total net revenue“Can we read?
In this context, the major contributors for the quarter were NBA 2K22, Grand Theft Auto Online and Grand Theft Auto V, Red Dead Redemption 2 and Red Dead Online, Empires & Puzzles, Tiny Tina’s Wonderlands, WWE 2K22, Rollic’s hyper-casual catalog , Toon Blast, The Quarry and Top 11, this list has highlighted the importance of mobile devices.
Continuing its mini-marathon, Grand Theft Auto V sold nearly 170 million copies worldwide, which made 380 million copies for the franchise. The Red Dead Redemption 2 franchise hit staggering numbers of 45 million and 68 million. Borderlands 3 sold over 15 million copies, pushing the Gearbox franchise to 75 million. NBA 2K22 is now the leader of its kind, with more than 12 million copies worldwide, surpassing its predecessor. The NBA 2K series now features over 125 million games. Of particular note is PGA Tour 2K21, which has reached the 3 million mark, and its successor will face EA Sports’ return to golf in early 2023.
After Rollerdrome on August 16th, the next big title is NBA 2K23 (September 9th). On the other hand, the tactical role-playing game Marvel’s Midnight Sun has been delayed again, so it’s no longer expected to hit theaters on October 7. On PS5, Xbox Series, and PC, however, the next Firaxis game will remain unchanged this fiscal year, so it’s likely to be released in early 2023, not far from Kerbal Space Program 2. On PS4, Xbox One, and Switch, the game’s release time will be more nebulous. No dates have been set for PGA Tour 2K23 and WWE 2K23, as does Gearbox’s upcoming Borderlands saga, but they’re not expected to be later than March 2023, either.
With Zynga becoming part of the family, Take-Two Interactive has naturally reset its target for the entire fiscal year, forecasting a turnover of between 560 and 5.7 billion euros. Just overtaking EA and Activision may not be enough, but Take-Two Interactive will likely soon have enough cash to compete for the title of America’s largest publisher. According to internal estimates, Zynga and other T2 mobile games will account for 45% of annual revenue, ahead of 2K Games (37%), Rockstar Games (17%) and Private Division (1%). On the other hand, as we said above, the acquisition of Zynga will have serious implications for the books: a net loss of at least €400 million per year is expected.
Something else to know →
- The integration of Zynga has enabled Take-Two to significantly accelerate growth: As of June 30, 2022, the group had 6,042 employees, compared to 5,079 a year earlier.
- Without revealing any numbers, management said it was pleased with player engagement in WWE 2K22, which managed to revive the franchise after a year of necessary rethinking.