Take-Two Interactive reported a wider than expected net loss for its second quarter Monday, with a net loss of $257 million compared to company guidance of $144 million to $160 million.
The video game gaming company reported second-quarter net revenue of $1.4 billion, in line with the company’s guidance, and up from $858.2 a year earlier. Shares of Take-Two fell 15 percent after hours Monday.
This is the first full quarter reflecting Take-Two Interactive’s acquisition of Zynga, which closed on May 23, 2022. Management also said it continued to see consumers impacted by macroeconomic trends, leading to pressure on in-game spending, even as engagement remains stable.
Net bookings reached $1.5 billion, in line with company guidance.
The largest contributors to net revenue in the quarter were NBA 2K22 and NBA 2K23; Grand Theft Auto Online and Grand Theft Auto V; Empires & Puzzles; Rollic’s hyper-casual portfolio; Toon Blast; Red Dead Redemption 2 and Red Dead Online; Words With Friends; Merge Dragons!; and Toy Blast.
“We posted another consecutive quarter of solid results, with Net Bookings of $1.5 billion, underscoring our ability to launch exciting new games and content updates across our portfolio,” said Strauss Zelnick, chairman and CEO of Take-Two. “We continue to make excellent progress with our integration of Zynga, and we remain highly optimistic about the vast, long-term growth potential for the mobile industry, which is expected to reach over $160 billion in gross bookings within the next four years.”
Last quarter, Zelnick warned of softness in the mobile gaming space due to macroeconomic trends. On Monday, Take-Two further reduced its forecast for the year due to “a more cautious view” of those trends.
“We now expect to deliver Net Bookings of $5.4 to $5.5 billion in Fiscal 2023. Our reduced forecast reflects shifts in our pipeline, fluctuations in FX rates, and a more cautious view of the current macroeconomic backdrop, particularly in mobile,” management said in the press release.