Grand Theft Auto and NBA power Take-Two’s strong revenues and minimize its Q1 losses

Online and digital is a booming business for Rockstar and 2K’s parent publisher.

Take-Two Interactive generated (GAAP) revenues of $311.6 million in its fiscal Q1 2017, which is up 13 percent year-over-year. The company lst 46 cents per share, which is a significant improvement over the 81 cents per share it lost during the same three-month period in 2015. The publisher continues to bring in massive revenues from Grand Theft Auto V and NBA 2K as well as connected components of those games. These games were the primary drivers in growing Take-Two’s digital business in the $99.6 billion global gaming industry.

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“Fiscal 2017 is off to a solid start, with first quarter net revenue up 13 percent year-over-year,” Take-Two chief executive Strauss Zelnick said in a statement. “Our results were driven by the continued strong performance of Grand Theft Auto V and NBA 2K, coupled with growth in revenue and bookings from recurrent consumer spending, including record bookings from Grand Theft Auto: Online.”

That recurrent consumer spending, specifically, grew 18 percent year-over-year. These include people spending money for in-game purchases and then coming back and doing it again. GTA: Online and NBA 2K both have modes built around this money-making strategy, and it now accounts for 57 percent of the company’s digitally delivered revenues.

Looking ahead, Take-Two is teasing multiple new projects from GTA developer Rockstar Games. It is also anticipating revenues for the second quarter in the range of $375 million to $425 million. It is also predicting earnings per share somewhere between 32 cents and 44 cents.

Through the end of the year, the publisher’s guidance includes $1.75-to-$1.85 billion in net revenues and $1.98 to $2.29 earnings per share.

“We anticipate a robust holiday season for Take-Two, anchored by the upcoming launches of Mafia III, Sid Meier’s Civilization VI, NBA 2K17, and WWE 2K17,” said Zelnick. “We plan to continue to support our titles with an array of innovative offerings designed to promote ongoing engagement and drive recurrent consumer spending, including additional free content for Grand Theft Auto Online.”