take-two-drops-nearly-10%-on-quarterly-adjusted-revenue-miss

Take-Two drops nearly 10% on quarterly adjusted revenue miss

Tech

(This February 6 story corrects paragraph 2 to say low-end of latest forecast range is $2.80 billion, not $2.80 million, and low-end of previous range is $2.75 billion, not $2.75 million)

(Reuters) – Take-Two Interactive Software Inc fell nearly 10% after the bell on Thursday, as the videogame publisher missed estimates for quarterly adjusted revenue amid competition from big-budget titles from rivals Activision Blizzard and Electronic Arts.

The company narrowed its full-year forecast range to $2.80 billion to $2.85 billion from $2.75 billion to $2.85 billion, the midpoint of which is below analysts’ average estimate of $2.85 billion.

Activision reported better-than-expected fourth-quarter adjusted revenue on Thursday, riding on the success of its blockbuster title “Call of Duty: Modern Warfare”.

The strong launch of “Star Wars Jedi: Fallen Order” during the crucial holiday season helped rival Electronic Arts to beat third-quarter adjusted revenue estimates in January.

On an adjusted basis, Take-Two’s revenue of $888.2 million for the third quarter ended Dec. 31 missed analysts’ average estimate of $922.1 million.

New York-based Take-Two’s net income fell to $163.6 million, or $1.43 per share, from $179.9 million, or $1.57 per share, a year earlier.

Reporting by Ayanti Bera in Bengaluru; Editing by Vinay Dwivedi