August 2, 2018 / 8:20 PM / a year ago

Take-Two tops revenue estimates as 'Grand Theft Auto' drives gains

(Reuters) - U.S. videogame publisher Take-Two Interactive (TTWO.O) beat Wall Street targets for quarterly revenue on Thursday, helped by the popularity of its “Grand Theft Auto” and “NBA 2K18” franchises.

Though Take-Two has produced several successful titles, its results in recent years have largely been driven by the success of “Grand Theft Auto Five,” which was launched in 2013.

Its latest results come as traditional videogame producers including Take-Two, Electronic Arts (EA.O) and Activision Blizzard (ATVI.O) face competition from increasingly popular, free-to-play online games such as Fortnite and PlayerUnknown’s Battlegrounds.

Take-Two reported adjusted revenue of $288.3 million in the first quarter ended June 30, comfortably above financial analysts’ average estimate of $258.4 million, according to Thomson Reuters I/B/E/S.

The company expects second-quarter adjusted revenue of between $500 million and $550 million. The forecast missed analysts’ expectations of $583.8 million.

Videogame makers are typically known to provide conservative forecasts but almost always beat them. Last week, Electronic Arts also forecast current-quarter revenue below expectations.

Still, Take-Two raised its adjusted revenue forecast for the fiscal year, to between $2.70 billion and $2.80 billion. Analysts were expecting $2.77 billion.

The company’s first-quarter net income rose to $71.7 million or 62 cents per share, from $60.3 million or 56 cents per share a year earlier.

Reporting by Arjun Panchadar and Remya Padmadas in Bengaluru; Editing by Sai Sachin Ravikumar

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