Take-Two Interactive Software, Inc (TTWO) has reported an 113.97 percent jump in profit for the quarter ended Mar. 31, 2017. The company has earned $99.28 million, or $0.89 a share in the quarter, compared with $46.40 million, or $0.48 a share for the same period last year. Revenue during the quarter surged 51.52 percent to $571.56 million from $377.21 million in the previous year period. Gross margin for the quarter expanded 43 basis points over the previous year period to 44.90 percent. Total expenses were 80.49 percent of quarterly revenues, down from 88.18 percent for the same period last year. This has led to an improvement of 769 basis points in operating margin to 19.51 percent.
Operating income for the quarter was $111.50 million, compared with $44.58 million in the previous year period.
“Consumer demand for our entertainment offerings remained exceedingly strong in the fourth quarter, finishing-off another outstanding year for our organization,” said Strauss Zelnick, chairman and chief executive officer of Take-Two. “During fiscal 2017, we delivered Bookings and cash provided by operating activities that significantly exceeded our original expectations, along with revenue growth and margin expansion. These results were driven by the continued extraordinary performance of Grand Theft Auto V and Grand Theft Auto Online, a diverse array of exciting titles from 2K, and record digitally-delivered revenue and Bookings, including our highest-ever from recurrent consumer spending. We invested our capital to grow and diversify our business further, including by acquiring Social Point, a leading free-to-play mobile game developer.
For the first-quarter, Take Two Interactive Software expects revenue to be in the range of $390 million to $440 million. Take Two Interactive Software expects revenue to be in the range of $1,950 million to $2,050 million for financial year 2018. Take Two Interactive Software forecasts net income to be in the range of $74 million to $85 million for the first-quarter. For fiscal year 2018, Take Two Interactive Software forecasts net income to be in the range of $504 million to $540 million. The company projects diluted earnings per share to be in the range of $0.65 to $0.75 for the first-quarter. For financial year 2018, the company projects diluted earnings per share to be in the range of $4.35 to $4.65.
Operating cash flow improves significantly
Take-Two Interactive Software, Inc has generated cash of $331.43 million from operating activities during the year, up 26.84 percent or $70.12 million, when compared with the last year. The company has spent $129.03 million cash to meet investing activities during the year as against cash outgo of $324.52 million in the last year.
The company has spent $49.77 million cash to carry out financing activities during the year as against cash outgo of $48.05 million in the last year period.
Cash and cash equivalents stood at $943.40 million as on Mar. 31, 2017, up 18.11 percent or $144.65 million from $798.74 million on Mar. 31, 2016.
Debt comes down significantly
Take-Two Interactive Software, Inc has recorded a decline in total debt over the last one year. It stood at $251.93 million as on Mar. 31, 2017, down 49.41 percent or $246.01 million from $497.94 million on Mar. 31, 2016. Take Two Interactive Software has recorded a decline in long-term debt over the last one year. It stood at $251.93 million as on Mar. 31, 2017, down 49.41 percent or $246.01 million from $497.94 million on Mar. 31, 2016. Interest coverage ratio improved to 284.45 for the quarter from 7.12 for the same period last year.
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