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Take-Two Q2 earnings beat estimates on strong "Borderlands 2" sales

Published: 16:53 31 Oct 2012 GMT

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Take-Two Interactive Software (NASDAQ:TTWO) Wednesday posted better-than-expected fiscal second-quarter earnings on the back of its recent 'Borderlands 2' title.

The publisher of the Grand Theft Auto series of video games also reduced its outlook for its 2013 fiscal year.

For the quarter ended September 30, Take-Two posted a net loss of $12.5 million, or 15 cents per share, compared with a loss of $47.4 million, or 57 cents per share a year earlier. Adjusted earnings were 11 cents in the latest quarter.

Analysts, on average, were expecting a loss of 16 cents on revenue of $239.5 million, according to FactSet.

"Take-Two's second quarter revenue and earnings exceeded our outlook, driven by the breakout success of 2K’s Borderlands 2 and robust demand for our catalog and digitally delivered offerings," Take-Two chairman and CEO Strauss Zelnick said.

"Our business continues to fire on all cylinders, led by terrific early results from 2K’s NBA 2K13, and the outlook for our upcoming releases such as BioShock Infinite is stronger than ever."

The company's 2K games business has to date sold over 5 million units of 'Borderlands 2', a game which combines the customization of role-playing games with the action of a shooter and which is now one of the most successful releases in 2K's history. 

2K also scored a hit with sci-fi strategy title 'XCOM: Enemy Unknown' which Take-Two said was proving to be "a critical and commercial success" with strong digital sales and a near 90 average review score on Metacritic, a highly-regarded gaming review site.

Two additional content packages will be available for the game this year, with additional content planned for 2013.

For the current fiscal third quarter, Take-Two expects adjusted earnings of 45 cents to 60 cents per share and adjusted revenue of $325 million to $375 million. Analysts are forecasting earnings of 52 cents per share on revenue of $356.9 million.

Looking ahead, the video games publisher cut its yearly outlook because it revised the release schedule for some of its games.

Gamers are eagerly awaiting titles such as Grand Theft Auto V and Bioshock Infinite, both due for a spring 2013 release.

The company expects non-GAAP revenue in the range of $1.1 billion to $1.2 billion, down from the previous forecast in the range of $1.75 billion to $2 billion.

Take-Two's Zelnick said the company expects to "generate substantial revenue and earnings growth in the fiscal year 2014" with its release of Grand Theft Auto V.

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