Take-Two’s financial results for the third quarter of fiscal year 2022 are in, and it looks like the holiday season boosted the publisher’s income beyond even its own expectations.
During the three-month period ending December 31, 2021, Take-Two’s GAAP Net Revenue increased 5 percent from $861 million to $903 million from the same period last year. Increased GAAP Net income decreased 20 percent from $182 million to $145 million.
If you’re curious why profits dropped even though revenue rose, Take-Two’s earnings report states that overall operating costs rose, with administrative expenses and research-and-development expenses both costing more money than in this quarter last year.
But those increased costs are still going up against the rivers of cash flowing into the company’s coffers, particularly from in-game spending. Net bookings (defined as the net amount of products and services sold digitally or sold-in physically during the period rose 6 percent from $814.3 million to $866 million in the third quarter.
Are there any surprises in this month’s earnings report? Not really. Grand Theft Auto Online, NBA 2K22, and Red Dead Online get the most credit for the company’s success, though Grant Theft Auto: The Trilogy – The Definitive Edition did better than expected (despite all the technical issues).
There are some interesting trends about player spending however. Take-Two reports that recurrent consumer spending rose two percent year-over-year, and accounted for 57 percent of net bookings.
That means players who began spending more time with Take-Two titles during the various lockdowns driven by the COVID-19 pandemic seem to still be comfortable spending their money in-game. Not every publisher has been so fortunate.
Wall Street seems to be taking Take-Two’s lack of exciting news as troubling. Shares of Take-Two’s stock hmm