Take-Two Interactive scores with NBA2K 11 and Red Dead Redemption, posts profitable year absent Grand Theft Auto
Take-Two Interactive Software on Thursday finished its 2010 fiscal year in the black, despite not having any new releases of its powerhouse Grand Theft Auto franchise.
Thanks to strong sales of Red Dead Redemption and NBA2K 11, the New York-based video game publisher posted a $54.2-million profit, or 58 cents a share, for its fourth quarter ended Oct. 31, bringing its net income for the year to $49.7 million, or 58 cents a share.
The results reversed last year's loss of $7.9 million in the comparable quarter, and a full-year loss of $130.4 million in 2009.
Sales surged 32% in the quarter to $373.7 million, and 65% for the year to $1.2 billion.
The gains are notable because it's the first time that has been done without a new Grand Theft Auto.
"We're very proud of the new Take-Two," said Strauss Zelnick, the company's chairman and soon-to-be chief executive at the new year, when its current CEO, Ben Feder, steps down. Zelnick, in a call with analysts, credits the company's turnaround to its focus on "a select portfolio of AAA titles, expanding our distribution channels and sound fiscal discipline."
This year, Take-Two was able to cash in on a brand-new hit, Red Dead Redemption, an action title set in the American Wild West. It also scored with its basketball title, NBA2K 11, which sold more than 3 million copies in the quarter.
Investors seemed to approve. Take-Two's shares, which lost six cents to close at $11.94, popped up 75 cents, more than 6%, to $12.74 in after-hours trading following the earnings release.
-- Alex Pham
Photo: Screen shot of Michael Jordan in NBA2K 11. Credit: Take-Two Interactive