Take-Two (TTWO.US) Q2 revenue declines, loss narrows, GTA VI pre-orders "unprecedented" ahead of launch, shares rise over 4% after hours.

U.S. game publisher Take-Two Interactive (TTWO.US) released its fiscal 2027 second-quarter results (ended September 30) after the market close on November 9, Eastern Time. The report showed quarterly net bookings of US$1.600 billion, down 18% year-over-year; GAAP net revenue of US$1.500 billion, down 15.4% year-over-year. GAAP net loss was US$54 million, or a diluted loss per share of US$0.29, significantly narrower than the US$0.73 loss per share in the same period last year. The company lacked major new releases this quarter, relying mainly on NBA 2K27 (released September 4) and the continued operation of GTA Online, so the sequential decline in results was expected. NBA 2K27, launched in September, sold 4 million copies, below Take-Two's sales expectations, and also weighed on fiscal 2027 second-quarter booking revenue through September 30. Recurrent consumer spending fell 9% year-over-year, accounting for 81% of total net bookings. On a quarterly basis, the loss per share of US$0.29 was significantly better than the market consensus (a loss of about US$0.90 per share), but net revenue of US$1.500 billion was below market expectations of about US$1.66 billion. Market focus has shifted entirely to the upcoming release of Grand Theft Auto VI (GTA VI). The title is scheduled for release on November 19 on PS5 and Xbox Series X|S, just 10 days from the date of this article. Chairman and CEO Strauss Zelnick said GTA VI pre-orders "continue to reach unprecedented levels" and said the company is heading into a "historic year." The company reiterated its full-year fiscal 2027 net bookings guidance of US$88.2 billion and for the first time provided third-quarter guidance, implying GAAP net revenue will be "more than double" this quarter, mainly benefiting from GTA VI sales ramping up in the second half of the fiscal year. In an interview on Monday, Zelnick added that many players chose to hold off on NBA 2K27 and wait for the upcoming GTA VI. He also noted that a cluster of new releases in the September game market weighed on the title's performance; behind that cluster was many competing publishers deliberately avoiding launching at the same time as GTA VI. On the profit outlook, the company kept its guidance unchanged: full-year GAAP net income guidance of US$109142 million, diluted earnings per share of US$0.570.75, non-GAAP EBITDA guidance of US$1.0241.082 billion, and operating cash flow expected to exceed US$1 billion; capital expenditures were raised to about US$290 million, mainly due to a real estate purchase plan. The company also noted that short-term debt rose sharply to US$629.2 million from US$30 million in the same period last year, cash and equivalents declined year-over-year, and with GTA VI marketing and release costs approaching, realizing operating cash flow will be key to maintaining a sound balance sheet. Zelnick explained: "With only ten days until release, we chose not to adjust our guidance. Once the game officially launches, we will have more real information." On the share price front, TTWO closed regular trading on November 9 down 3.48% at US$207.40, but after the earnings report and the GTA VI pre-order comments were released, it rose more than 4% after hours, reflecting growing market expectations that the GTA VI launch will deliver on the full-year guidance.