Take-Two report larger losses despite higher revenues

Losses hit $15m

18 December 2008 18:39 GMT / By Verity Burns

Take-Two has released its 2007 fiscal year financial results, showing Q4 revenues up by over 10%, but losses that have more than doubled compared to last year's figures.

The publisher has put the losses, which tot up to around $15 million, down to a number of factors. These include stock-based compensation of $9.3 million, professional and legal fees of $5.6 million and business reorganisation costs of $1.6 million.

Looking on the bright side, the company's revenues hit $323.4 million for the three months in the run up to the end of October. This was helped by good sales of key titles and an increase in distribution revenue.

Revenues for the year overall were $1.5 billion thanks to the release of Grand Theft Auto IV, 50% up on last year. There was an overall annual profit of $97.1 million, a much more positive figure to the $138.4 million loss recorded last year.

"Take-Two's record results for the 2008 fiscal year reflect the fundamental strength of our business model", said Strauss Zelnick, chairman of Take-Two. "Our performance has benefited from the strategies we've implemented during the past 18 months to unlock the potential of our creative talent, sharpen our focus on the core business, and take costs out of our operations".

"These actions were taken in the interest of creating long-term shareholder value, and we believe they have also better positioned the company to weather an increasingly challenging economic climate".

Take-Two have now predicted that Q1 revenues for fiscal 2008 will be between $175-225 million, with full fiscal year revenues predicted to net $1.1-1.25 billion.