Take-Two Interactive's Q1'21 earnings show tremendous digital growth thanks to NBA 2K20, Grand Theft Auto, and catalog sales and earnings.
Take-Two's Q1'21 results continue to reflect how COVID-19 is boosting video games earnings. The Grand Theft Auto parent company broke multiple earningsrecords during the quarter ending June 30, driven by substantial jumps in monetization, sales, and engagement.
The company reported net income of $88.5 million (+91%) on net revenues of $831.31 million (+54%). Net operational cashflow, one of the most telling metrics, skyrocketed by 310% to $445.3 million, clearly showing the efficiency of Take-Two's streamlined business.
Take-Two Interactive Q1'21 Earnings At-A-Glance
- Net Revenue - $831.31 million, up 54%
- Net Bookings - $996.2 million, up 136%
- Net Income - $88.5 million, up 91%
- Digital Net Bookings - $915 million, up 139% YoY
- Recurrent consumer spending -$647.53 million, up 127%
- Total Expenses -$749.16 million
Recurrent consumer spending, or microtransactions, subscriptions, and DLC, grew $127% to $647.53 million. NBA 2K20 was the largest contributor to recurrent consumer spending during the quarter, and the game saw a sharp triple-digit spike in monetization due to the lack of sports alternatives during COVID-19 lockdowns.
Digital net bookings, which includes recurrent consumer spending and game sales, skyrocketed to nearly $1 billion in revenues. The company pulled in $915 million from digitally-delivered net bookings, up 139% year-over-year, of which catalog made over 90%. These earnings were driven by NBA 2K20, Grand Theft Auto V and Grand Theft Auto Online, and Red Dead Redemption 2.
As Take-Two's earnings jumped, so too did its expenses. The company spent $749.16 million total on expenses in Q1'21.
- GTA V has now sold 135 million copies
- NBA2K20 has made over $1 billion in net bookings
- GTA V next-gen re-release is due out second-half 2021
- Pipeline of new games includes sequels in best-selling franchises
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