Take-Two Interactive Software Inc (NASDAQ:TTWO), the publisher of global hit video games Grand Theft Auto, Red Dead Redemption and 2K Sports, posted a net loss of $841.2 million for the nine months ending 31 December 2023, representing a more than 60% bottom-line drop year on year.
The company, whose portfolio includes hit mobile games FarmVille and Words With Friends, reported total net revenues of $3.95 billion across gaming sales and advertising for the period, slightly up by 1% year on year.
“We are currently working on a significant cost-reduction program across our entire business to maximise our margins, while still investing for growth,” stated chairman and chief executive Strauss Zelnick.
Though sales across GTA, Red Dead and mobile gaming subsidiary Zynga’s catalogue “exceeded our expectations”, Zelnick conceded that this was “offset by some softness in mobile advertising and sales for NBA 2K24”.
Take-Two is holding out for the next big AAA gaming release, although the sixth instalment of its cornerstone GTA series is not due until next year.
Pending releases in the coming months include WWE 2K24 on the PlayStation 5, Xbox and PC, and the 3D platformer Penny’s Big Breakaway on all platforms.
Take-Two has reduced its full-year outlook, with a revised net booking forecast of $5.25 billion to $5.3 billion.
Shares in the New York-listed group were down by 9.5% in after-hours trading.