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Take-Two shares slump after video game maker slashes guidance

Published 02/08/2024, 04:29 PM
Updated 02/09/2024, 03:46 AM
© Reuters

Investing.com -- Take-Two (NASDAQ:TTWO) Interactive has cut its annual bookings guidance, citing projected softness for titles like "NBA 2K24" and a planned release moving out of its fiscal fourth quarter.

Shares in the video game publisher fell sharply in premarket U.S. trading following the report.

The company reported an adjusted loss of $0.54 on revenue of $1.37 billion, missing estimates for earnings of $0.72 a share and revenue of $1.34B.

Net bookings - the net amount of products and services sold digitally or sold-in physically - fell 3% to $1.34 billion.

Looking ahead to fiscal 2024, the company cut its forecast for net booking to a range of $5.25B to $5.3B from $5.45B to $5.55B. Net loss for per share is now forecast between $5.95 to $5.85 on revenue of $5.27B to $5.32B, That compared with prior estimates for a loss of $5.62 to $5.35 on revenue of between $5.37B to $5.47B.  

Take-Two singled out "some softness in mobile advertising and sales for NBA 2K24," as well as increased marketing costs to support Zynga’s new mobile game, Match Factory! for reduction in its annual forecast. 

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