Take-Two Reports Massive Loss

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Take-Two InteractiveTake-Two Interactive released the results for its fourth fiscal quarter and fiscal year ended October 31, 2009:
For the quarter, Take-Two reported a net loss of $21.989 million, compared to a net loss of $14.954 million in the same quarter the previous year. For the year, Take-Two reported a net loss of $137.930 million, compared to net income of $97.097 million the previous financial year.

Take-Two's fourth quarter results included a $14.8 million impairment related to a re-assessment of goodwill (a fancy way of saying that, in retrospect, the company overvalued its distribution segment), $9.8 million in stock-based compensation expenses and $4.3 million in tax expenses related to goodwill amortization.

Chairman Strauss Zelnick stated that "our company and industry experienced a very difficult environment," and he believes things will continue to be difficult in 2010. However, he argues the company is still in a fundamentally strong position. Lately, analysts have disagreed as the company's stock price has plummeted, returning to the position that Zelnick's team is extracting a lot of compensation while hoping to exploit the Grand Theft Auto franchise.

For the year, around 41% of publishing revenues came from Xbox 360 games, with PlayStation 3 games providing 16% of publishing revenues and PC and Wii games each providing 11% of publishing revenues.

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This page contains a single entry by Editor published on December 17, 2009 2:21 PM.

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