Take-Two raises sales forecast as videogames get stay-at-home boost

Credit: REUTERS/JONATHAN ALCORN

Take-Two Interactive Software Inc on Monday raised its fiscal year adjusted sales forecast after beating quarterly estimates on demand for its videogame franchises, including "Grand Theft Auto", from people stuck at home due to lockdowns.

Adds background, net income, current quarter forecast

Aug 3 (Reuters) - Take-Two Interactive Software Inc TTWO.O on Monday raised its fiscal year adjusted sales forecast after beating quarterly estimates on demand for its videogame franchises, including "Grand Theft Auto", from people stuck at home due to lockdowns.

June spending on video games in the United States surged 26% to $1.2 billion, the highest for the month in over a decade according to research firm NPD, as sheltered-at-home people looking for entertainment turned more to games and also purchased virtual in-game content across platforms.

Take-Two's "Grand Theft Auto V", which released in 2013, was the fourth best-selling game in June across all platforms, according to NPD.

The company also forecast better-than-expected adjusted sales for its second quarter, a period which includes the scheduled launch of "NBA 2K21", the new title in its annualized basketball franchise.

Take-Two estimated adjusted sales in the range of $775 million to $825 million, while analysts were expecting $747.9 million.

The company also lifted its adjusted revenue forecast for its year ending in March 2021 to a range of $2.80 billion to $2.90 billion, from $2.55 billion to $2.65 billion earlier. Analysts had expected sales of $2.75 billion, according to Refinitiv IBES data.

Take-Two net income rose to $88.5 million, or 77 cents per share, in the first-quarter ended June 30, from $46.3 million, or 41 cents per share, a year earlier.

On an adjusted basis, the game publisher reported revenue of $996.2 million, beating estimates of $843.7 million.

(Reporting by Ayanti Bera in Bengaluru; Editing by Sriraj Kalluvila)

((Ayanti.Bera@thomsonreuters.com; 646 223 8780 - 3401;))

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