Take-Two Interactive Software didn’t offer a specific update on the launch date of Grand Theft Auto VI (it’s still coming this fall), but it did report $1.37 billion net bookings for the third-fiscal quarter ended December 31.
The net bookings number was up 3% from $1.34 billion a year earlier. Good results for NBA 2K helped offset a slowdown in mobile gaming results.
GAAP net revenue was $1.36 billion, compared to $1.37 billion in last year’s fiscal third quarter. The GAAP net loss was $125.2 million, or 71 cents per share, as compared to $91.6 million, or 54 cents per share, for the comparable period last year. Analysts were expecting GAAP revenues of $1.39 billion and a loss per share of nine cents.
Net bookings are the company’s operational metric, and it’s defined as the net amount of products and services sold digitally or sold-in physically during the period. It includes licensing fees, merchandise, in-game advertising, strategy guides and publisher incentives. GAAP revenues don’t count revenue that is booked in the quarter but realized at later times.
The largest contributors to net bookings were NBA 2K25, Grand Theft Auto Online and Grand Theft Auto V, Toon Blast, Match Factory!, our hyper-casual mobile portfolio, Empires & Puzzles, Red Dead
Redemption 2 and Red Dead Online, Words With Friends, and Toy Blast.
“We achieved solid results during the holiday season. Our net bookings of $1.37 billion were within our guidance range, as significant outperformance in NBA 2K helped to offset moderation experienced in several of our mobile franchises. At the same time, our operating results surpassed expectations, led by the upside from NBA 2K, as well as a shift in timing of expenses that benefited the quarter,” said Strauss Zelnick, CEO of Take-Two Interactive, in a statement. “
He added, “For Fiscal 2025, we are reiterating our Net Bookings guidance range of $5.55 to $5.65 billion and our outlook for operating performance. Our projections for the fourth quarter balance strength in NBA 2K with a continuation of the current mobile trends, and the shift of some operating expenses into the period.”
And Zelnick said, “Looking ahead, this calendar year is shaping up to be one of the strongest ever for Take-Two, as we plan to launch Sid Meier’s Civilization VII on February 11th, Mafia: The Old Country in the summer, Grand Theft Auto VI in the fall, and Borderlands 4. We continue to invest prudently in our development pipeline and remain confident in Zynga’s potential to create new mobile forever franchises as demonstrated by their ongoing success with Match Factory. As we continue to deliver hits, we remain highly confident that we will achieve sequential increases in, and record levels of, net bookings in fiscal 2026 and 2027.”
Take-Two said recurrent consumer spending increased 5% and accounted for 80% of total GAAP net revenue. Recurrent consumer spending is generated from ongoing consumer engagement and includes virtual currency, add-on content, in-game purchases and in-game advertising.
Zelnick interview
I interviewed Zelnick briefly and asked if Take-Two would support the Nintendo Switch 2 in a big way. He said he could not comment on their plans. And he added, “Historically, we’ve supported all major platforms and we’ve selectively supported Nintendo platforms. For example, Civ 7, which is in early access today, will be available for Switch. So I would have every belief that we’ll be supportive of Switch 2.”
And I asked if he would offer a reassurance that the dates for Mafia: The Old Country and GTA VI would not slip, given there is no launch date for those games yet.
“It’s always the possibilities in our business. However, we’ve given the narrow window for upcoming titles. After all, it is February and we’ve outlined the release schedule through calendar year end,” he said.
Asked if he were worried about the tariffs proposed by Donald Trump and whether they would affect game hardware or disc sales, he said, “I’m not sure it would affect physical discs. I do think the tariffs could be a negative for console sales. As an economist, I’m not a big fan of trade wars. I do think there are moments where tariffs make sense. I’m encouraged by the pause in Mexico and Canada. But I’m a free trader so generally speaking I don’t think tariffs are the right way to build or tax an economy.”
Take-Two confirmed that Michael Condrey, founder of the 31st Union game studio, had left the company. It also announced that studio is making Project Ethos. Asked about it, he said, “We’re grateful to Michael Condrey. He did amazing work for us. He brought us a project and created a team. He is going to continue to advise us on the future of Project Ethos. We’ll be managing that. The transition team” is leading the completion of that game.
As for direct-to-consumer mobile sales, I noted the company said it is growing and asked if he views that as a strategic opportunity.
He said he expect direct-to-consumer will be a bigger part of the company’s mobile platform than it currently is.
“That said, it’s certainly not going to be the lion’s share of sales. We’re still quite happy to work with our retail partners, and we’ll continue to do so worldwide,” he said.
As for the mobile trends that have slowed Zynga’s sales, he said, “Our view is that mobile has returned to modest growth, but we haven’t had the kind of powerful industry tailwinds that everyone was enjoying up until mid-2022.
“So the good news is that it’s back to growth. The other news is it’s still a somewhat challenging market. Our recurrent consumer spending mobile was up about 6% in the quarter,” he said. “That was somewhat shy of our expectations. On the other hand, we had this huge hit in Match Factory and great performance in many titles like Toon Blast and Toy Blast. So we’re feeling very good about Zynga. We’re thrilled that it’s part of our portfolio. We have what we believe will be great releases coming up. At the same time, the industry is a bit challenged.”
I also asked about the ESA’s new business conference, iicon, coming in 2026. He said, “I’m super excited about it. Frankly i think it’s going to be great.”
Outlook
For the fiscal year, Take-Two is repeating its net bookings guidance for the current FY25 fiscal year at $5.55 billion to $5.65 billion. While third quarter operating results exceeded expectations, the company expects the fourth quarter to be affected by a continuation of current mobile trends, as well as the shift of some operating expenses into the period.
Recurrent Consumer Spending rose 9% over last year, which was in line with guidance, and accounted for 79% of net bookings.
NBA 2K grew over 30%, which greatly surpassed the internal forecast, led by new features and innovation in game modes. Mobile increased 6%, driven by the addition of Match Factory and strength in Toon Blast, Toy Blast and Words with Friends. However, this was below guidance of low double-digit growth, primarily due to underperformance in the hyper-casual mobile portfolio and Empires and Puzzles. And, as anticipated, Grand Theft Auto Online declined.
During the quarter, Take-Two launched NBA 2K 25 Arcade Edition (Apple Arcade), Red Dead Redemption and Undead Nightmare (PC), and Grand Theft Auto Online: Agents of Sabotage. Digital is now 96% of the overall net bookings. In consoles, 79% of game sales are digital. Catalog sales were $350 million, or 53% of non-mobile net bookings.
The company is raising the recurrent consumer spending forecast to 5% growth, which represents 78% of net bookings, driven by the phenomenal performance of NBA 2K, which is expected to grow low double-digits. Mobile is now expected to grow low single-digits, factoring in the current business trends. And Grand Theft Auto Online is still expected to decline. The company projects the net bookings breakdown from labels to be roughly 49% Zynga, 34% 2K, and 17% Rockstar Games.
Take-Two said the forecast for geographic net bookings will be 60% United States and 40% International.
2K results
NBA 2K25 delivered a phenomenal quarter, yielding significant upside to the forecast. To date, the title has sold-in over seven million units, and engagement was extremely strong compared to last year, with Recurrent consumer spending up over 30%, daily active users up nearly 20%, and monthly active users up nearly 10%.
The game has community-inspired enhancements to gameplay, major technological updates, and the addition of new game modes.
Additionally, 2K continues to expand the industry-leading basketball franchise with NBA 2K Arcade Edition, MYTEAM, NBA 2K Mobile, and NBA 2K Online in China, all of which contributed to another highly successful year for the NBA 2K franchise as a whole.
Rockstar Games results
The Grand Theft Auto series is still leading the industry. Grand Theft Auto V has sold-in over 210 million units worldwide. GTA Online delivered a strong quarter, led by its holiday update, Agents of Sabotage, which players praised for its depth, new upgrades, and array of content. GTA+ continues to grow its reach, with membership for the quarter increasing 10% year-over-year.
Rockstar Games continued to expand the audience for Red Dead Redemption 2, which has sold-in more than 70 million units to-date. The title is currently enjoying its highest level of concurrent players on Steam. In addition, Red Dead Online engaged its audience further during the period with the release of the fan-favorite Halloween Pass, featuring seasonal-themed bonuses and rewards.
Zynga results
Recurrent Consumer Spending grew mid-single digits. While this was somewhat below our plan, we remain highly optimistic about Zynga’s future.
Toon Blast and Toy Blast both delivered double-digit growth, led by engaging features including new event types, improved player profiles, and enhanced tuning.
Match Factory is performing very well and remains on track to become Zynga’s second largest title by the end of this fiscal year in terms of net bookings. Peak continues to execute strongly and has created one of the top-grossing titles in the puzzle genre.
While Empires & Puzzles performed below expectations in the quarter, Take-Two is confident in the future of this highly profitable forever franchise. The team is launching new event types and corresponding heroes, as well as increasing in-game rewards.
Zynga continued to leverage the zeitgeist of pop culture and broadened its partnerships with leading entertainment brands and personalities, including Words With Friends with Bravo’s Real Housewives, Zynga Poker with actor/comedian Rob Riggle, and Power Slap with TKO.
The teams are growing direct-to-consumer offerings and deploying key learnings across the portfolio. During the holiday season, Take-Two achieved strong double-digit DTC conversion in several major titles, and we are taking action to maintain this momentum.
Take-Two said it is confident in Zynga’s continued ability to launch successful new titles as well as brand extensions for some of our console IP. In the quarters ahead, the company looks forward to launching new hit mobile games, including the latest installment of Zynga’s racing franchise, CSR 3.
Future line-up
Take-Two has a lot of games coming. Sid Meier’s Civilization VII arrives on February 11. Player sentiment is positive on that title, Take-Two said. I’ve been playing the game and it’s a beautiful title. PGA Tour 2K25 is coming on February 28. WWE 2K25 releases on March 14.
But the calendar is still vague for other titles. Hangar 13 and 2K’s Mafia: The Old Country is coming this summer, GTA VI is the fall of 2025, Borderlands 4 is coming this year. There are no dates yet for Zynga’s CSR 3, Ghost Story Games’ Judas (the latest title from Ken Levine), and no date for 2K’s Project Ethos. Michael Condrey, head of the studio making that game, has left the company.
The Mafia franchise has sold more than 35 million copies to date.
Long-term outlook
Looking ahead, this calendar year is shaping up to be one of the strongest ever for Take-Two, the company said.
The company said it also remains confident in Zynga’s ability to create new mobile forever franchises as demonstrated by their ongoing success with Match Factory.
“We are exceedingly optimistic about the commercial potential of our titles and believe that they will have a transformative effect on our business – and our industry – over the long term,” the company said. “As we execute on our mission to create our industry’s most innovative and engaging entertainment experiences, we remain highly confident that we will achieve sequential increases in, and record levels of, net bookings in Fiscal 2026 and 2027.”
