Take-Two reports $38 million Q1 loss

Take-Two released its financial results for Q1 2008 today, reporting a net loss of USD 38 million - an increase of 77 per cent from its Q1 2007 net loss of USD 21.5 million.

The company reported net revenue of USD 240.4 million, down 13 per cent from the 277.3 million reported for the same period of fiscal 2007.

First quarter results include USD 6.1 million in stock-based compensation expense and USD 1.7 million in expenses related to unusual legal matters and business reorganization costs.

The company had no major release in Q1. Sales were led by BioShock, Carnival Games, NBA 2K8, Grand Theft Auto catalog titles, and the release of Grand Theft Auto: Vice City Stories in Japan.

"We are pleased with Take-Two's stronger than expected top and bottom line results for the first quarter," said chairman Strauss Zelnick.

"Our performance benefited from a diverse range of hit titles in the first quarter, and we are eagerly awaiting the release of Grand Theft Auto IV in the second quarter.

"We believe that our extraordinary creative assets and improving operational efficiency will be sources of significant value for shareholders as the interactive entertainment industry moves further into the current growth cycle."

In a conference call to investors, Zelnick said that there was nothing new to report on the acquisition offer from EA which Take-Two's board rejected. He continued to maintain that the offer undervalued the company.

Take-Two has raised its guidance, anticipating Q2 revenue in the range of 450-500 million and FY 2008 revenue in the range of 1.25-1.4 billion.

Midnight Club: Los Angeles, originally scheduled for Spring, has been moved to the fall. The company also announced the scheduled release of Mafia II, GTA IV episodic content on Xbox 360, Borderlands, and BioShock 2 for fiscal 2009.