Take-Two raises 2015 forecast, revenue surpasses estimates

By Malathi Nayak

By Malathi Nayak SAN FRANCISCO (Reuters) - Video game publisher Take-Two Interactive Software raised its 2015 forecast on Wednesday as titles such as "Grand Theft Auto" and "NBA 2K14" helped fuel sales and drove stronger-than-expected results in its fiscal second quarter. Shares of Take-Two rose 6.5 percent in after-hours trading. They closed at $22.80 on the Nasdaq on Wednesday. Take-Two is gratified by the initial response to its holiday season lineup, Chief Executive Strauss Zelnick said in an interview. This month, the video game publisher released four new titles for the current holiday quarter, including "NBA 2K15" and "Borderlands: The Pre-Sequel" and the upcoming launch of "Grand Theft Auto V" for Xbox One and PlayStation 4 consoles. “It’s early days yet but they seem to be penciling out at or better than expectations and that led us to adjust our financial outlook for the year,” Zelnick said The company raised its forecast for fiscal year 2015, ending March 31 next year, to estimated non-GAAP net revenue of $1.4 billion to $1.5 billion and non-GAAP net income of $1.05 to $1.30 per share. Last quarter, it had reiterated its previous fiscal year forecast of estimated non-GAAP net revenue of $1.35 billion to $1.45 billion and non-GAAP net income of 80 cents to $1.05 per share. Take-Two, which also publishes "Borderlands 2," said non-GAAP net revenue fell to $135.4 million in the quarter ended Sept. 30, from $1.27 billion a year ago when the company saw record sales from the launch of "Grand Theft Auto V". That surpassed the $111 million average estimate of analysts polled by Thomson-Reuters I/B/E/S. It posted a non-GAAP net loss of $35.4 million, or 44 cents per share, compared with a profit of $325.6 million, or $2.49 per share a year ago, the company said. That beat Wall Street's expectation of a loss of 59 cents per share. For the third quarter ending December 31, the company said it expects to deliver non-GAAP net income in the range of $1.35 to $1.45 per share. (Reporting by Malathi Nayak; Editing by Chris Reese and Meredith Mazzilli)