News

Take-Two Interactive Shares Fall After Disappointing Revenue Forecast

1 Mins read

Take-Two Interactive, a prominent videogame publisher, experienced a decline in its shares following the release of a disappointing forecast for revenue.

For the fiscal third quarter, Take-Two reported adjusted revenue (net bookings) of $1.34 billion, which aligned with the consensus among analysts tracked by FactSet. The company also disclosed adjusted earnings per share of 71 cents for the December quarter, just shy of the average analyst estimate of 72 cents.

However, Take-Two’s guidance for the current quarter was concerning. The company provided an adjusted revenue guidance range of $1.27 billion to $1.32 billion for the March quarter, significantly lower than the average analyst estimate of $1.51 billion. In a news release, Take-Two attributed this decrease to weakness in mobile advertising and NBA 2K24 title revenue.

CEO Strauss Zelnick commented on the situation, stating, “We are reducing our outlook for the year to reflect these factors, as well as a planned release moving out of the fourth quarter. We are currently working on a significant cost reduction program across our entire business to maximize our margins, while still investing for growth.”

As a result of these developments, Take-Two shares plummeted by 8.3%, reaching $155.50 in aftermarket trading on Thursday.

During a phone interview with ‘s, Zelnick acknowledged that there had been a decline in demand for NBA 2K24 on older console platforms. On a different note, when asked about the reception for the trailer of GTA VI, Zelnick expressed his excitement, stating that it had “broke the internet” and emphasized his high anticipation for the upcoming title.

Related posts
News

Banking Regulations for Preventing Failures

2 Mins read
Banking regulators have the power to prevent future bank collapses, according to a panel of banking experts who emphasized the importance of…
News

Dave's Strong Q4 Performance

1 Mins read
Shares of Dave surged on Tuesday following the digital bank’s announcement of a profitable fourth quarter earlier than expected, with a positive…
News

DaVita Expands in Latin America

1 Mins read
Shares of DaVita reached record levels as the kidney care services company announced its significant expansion into Latin America through a $300…

Leave a Reply

Your email address will not be published. Required fields are marked *

7 + 3 =