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Shares in video game giant Take-Two fall slightly amid downbeat outlook

Published 05/18/2016, 08:00 PM
Updated 05/18/2016, 08:04 PM
Take-Two, the producer and distributor of Grand Theft Auto, lowered its full-year guidance on Wed.
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Investing.com -- Shares in Take-Two Interactive Software Inc (NASDAQ:TTWO) inched down in after-hours trading after the New York-based multinational video game developer and distributor saw its adjusted revenue and earnings move lower last quarter.

During Take-Two's fourth quarter of Fiscal Year 2016, the video game company's adjusted revenue slumped 20% to $342.5 million, amid slower than expected sales in the post-holiday period. At the same time, Take-Two's adjust profits per share fell mildly from 0.49 to 0.46. Take-Two is most well-known for producing the Grand Theft Auto and NBA 2K video games.
Despite the downbeat earnings and revenues, Take-Two still topped analysts' forecasts of adjusted revenues of $306 million on adjusted earnings per share of 0.26.

"Fiscal 2016 marked the third consecutive year of stronger-than-expected Non-GAAP revenues and profits for Take-Two,” said Strauss Zelnick, Chairman and CEO of Take-Two. "Our results were driven by the continued extraordinary performance of Grand Theft Auto V, ongoing momentum in our NBA2K and WWE 2K series, the successful launch of XCOM 2, and our highest-ever revenue from recurrent consumer spending."

Moving forward, Take-Two expects full-year adjusted revenue between $1.5 and $1.6 billion in Fiscal Year 2017, in line with annual revenue this year of $1.56 billion. Nevertheless, Take-Two anticipates adjusted earnings per share of 1.00 to 1.25, significantly below this year's total of 1.96.

"Fiscal 2017 is poised to be another strong year for Take-Two, with anticipated Non-GAAP earnings in excess of $1.00 per share. Our diverse lineup includes the new intellectual property Battleborn,which we released earlier this month, and the eagerly anticipated upcoming launches of Mafia III, Sid Meier’s Civilization VI, NBA 2K17 and WWE 2K17," Zelnick added.

Take-Two shares fell 0.28 or 0.78% to 35.40 in after-hours trading.

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