Annabelle Stephenson
Take-Two Interactive, the publisher renowned for the immensely popular game “Grand Theft Auto,” has recently unveiled its plans to implement cost-saving measures following a challenging financial performance in the October-December 2023 quarter. Despite the need for cost reductions, the company’s management has affirmed that employee layoffs will not be pursued as the primary solution.
Strauss Zelnick, the CEO of Take-Two, has emphasized the company’s intentions to optimize various expenses without affecting their workforce. In an interview with Variety magazine following the release of the financial report, Zelnick revealed that their largest expense lies in marketing. This opens up possibilities for streamlining costs in marketing, third-party services, supplier fees, and other areas. Take-Two takes pride in being the most efficient firm in the entertainment industry and aims to maintain this reputation.
According to analysts from LSEG (formerly Refinitiv), Wall Street analysts initially anticipated earnings per share (EPS) of $0.72, with net revenue of $1.34 billion for the latest quarter. However, Take-Two reported a net loss of $0.54 per share, along with the expected net revenue of $1.34 billion.
In a letter directed to shareholders alongside the release of the quarterly results, Take-Two disclosed its revised net revenue forecasts for the remainder of the 2024 fiscal year, ending on March 31, which are estimated to range between $5.25 billion and $5.3 billion. As of now, the company is implementing a significant cost reduction program across all operational domains while making strategic investments in development to enhance profit margins.
The letter also unveiled the anticipated release dates for upcoming games, including the much-anticipated “Grand Theft Auto 6” by Rockstar Games, scheduled for launch in 2025.
However, speculations concerning the long-term financial outlook suggest that “GTA 6” may be unveiled between January and March 2025.
During the financial results conference, Strauss Zelnick dismissed any further narrowing down of the “GTA 6” release date beyond 2025, stating, “We continuously strive for excellence and will only release the game once we have achieved optimization.”
Furthermore, Lainie Goldstein, the Chief Financial Officer of Take-Two, revealed that the financials for 2025 have not been finalized and will not be published until May. Goldstein explained, “We are currently in the midst of the budgeting process. Currently, our forecast for the 2025 fiscal year stands slightly above $7 billion in net revenue, considering the typical changes and adjustments in our projections. Our lineup for next year and the following years is filled with innovative projects, and our teams continue to excel in game development. The intrinsic value of our portfolio remains unchanged. We will present the preliminary forecast for the 2025 fiscal year in early May during our fourth-quarter results report.”
On Thursday’s trading session, Take-Two’s shares closed at $169.60 per share, but the price experienced a drop of over 10% after hours. Regular U.S. stock markets will resume trading on Friday at 9:30 AM ET.
FAQ:
Q: What cost-saving measures is Take-Two Interactive implementing?
A: Take-Two Interactive is optimizing various expenses, particularly in marketing, third-party services, and supplier fees, to achieve cost savings.
Q: Are employee layoffs part of Take-Two’s cost-saving strategy?
A: No, Take-Two Interactive is focusing on cost savings that do not involve employee layoffs.
Q: What are the revised net revenue forecasts for Take-Two for the 2024 fiscal year?
A: Take-Two has revised its net revenue forecasts for the 2024 fiscal year to be between $5.25 billion and $5.3 billion.
Q: When is “Grand Theft Auto 6” expected to be released?
A: “Grand Theft Auto 6” is currently scheduled for release in 2025.
Q: When will Take-Two release the preliminary forecast for the 2025 fiscal year?
A: Take-Two will present the preliminary forecast for the 2025 fiscal year during the announcement of their fourth-quarter results in early May.
The source of the article is from the blog combopop.com.br
