May 16, 2018 / 8:09 PM / 11 days ago

Take-Two fourth-quarter revenue misses estimates

May 14 (Reuters) - Videogame publisher Take-Two Interactive Software Inc reported fourth-quarter revenue that missed Wall Street estimates, as increasing competition from games in the “battle royale” genre such as “Fortnite” weighed on its top line.

On an adjusted basis, the company reported revenue of $411.4 million in the reported quarter, missing the analysts’ average estimate of $444.63 million, according to Thomson Reuters I/B/E/S.

The success of “Fortnite” and “PlayerUnknown’s Battlegrounds” have somewhat challenged publishers including rival Activision Blizzard Inc.

Epic Games launched the free-to-play “battle royale” mode for “Fortnite” on computers and gaming consoles in September. The mode allows up to 100 online players to battle each other to the death until only one player survives.

Take-Two had delayed the launch of its highly anticipated Western action-adventure “Red Dead Redemption 2” to Oct. 26, this year.

The company forecast first-quarter adjusted revenue of $215 million to $265 million.

Other game publishers Electronic Arts and Activision’s current-quarter forecast had also come in below Wall Street expectations.

Take-Two forecast adjusted revenue between $2.67 billion and $2.77 billion for the year ending March 31, 2019.

U.S. videogame producers are known to typically give outlook below market expectations but almost always beat them.

Take-Two’s net income fell to $90.9 million, or 77 cents per share, in the fourth quarter ended March 31, from $99.3 million, or 89 cents per share, a year earlier. (Reporting by Arjun Panchadar in Bengaluru; Editing by Shounak Dasgupta)

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