Take-Two Interactive Software Inc reported strong quarterly results on Wednesday, beating analyst estimates for adjusted sales on the back of strong demand for its legacy titles “NBA 2K” and “Grand Theft Auto”. The company also forecast $8 billion in net bookings and over $1 billion in operating cash flow for 2025. Shares of the video game publisher rose 8% in extended trading.
The company’s fourth-quarter adjusted sales grew 65% to $1.39 billion, compared with Wall Street’s estimate of $1.34 billion. Take-Two has established itself as one of the dominant players in the U.S. with strong sales from its successful video game franchises and a solid pipeline including titles like “Star Wars Hunters”.
However, the company missed profit estimates, on acquisition-related charges, and its annual adjusted revenue forecast between $5.45 billion and $5.55 billion came below Street’s estimate of $6.07 billion. Chief Executive Strauss Zelnick said Take-Two was assuming a continuation of the current challenging consumer backdrop within its forecast.
The results follow an upbeat performance from peer Electronic Arts (NASDAQ:EA) and “Call of Duty” maker Activision Blizzard Inc (NASDAQ:ATVI), confirming signs of the video gaming industry rebounding from a sluggish 2022 due to decades-high inflation.