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Take-Two Interactive Software Posts Results for Fiscal Third Quarter 2014

February 6, 2014

Take-Two Interactive Software, Inc. reported financial results for fiscal third quarter 2014, ended December 31, 2013 . In addition, the Company increased its financial outlook for fiscal year 2014, ending March 31 , and provided its initial financial outlook for fiscal fourth quarter 2014, ending March 31 . In a release on January 3 , the company noted earnings details: GAAP Financial Results For fiscal third quarter 2014, GAAP net revenue increased to $1.86 billion , as compared to $415.8 million for fiscal third quarter 2013. GAAP net income from continuing operations was $578.4 million , or $4.69 per diluted share, as compared to $70.9 million , or $0.66 per diluted share, for the year-ago period. As of December 31, 2013 , the Company had cash and cash equivalents of $972.2 million . Non-GAAP Financial Results For fiscal third quarter 2014, Non-GAAP net revenue grew to $767.7 million , as compared to $405.0 million for the year-ago period. Non-GAAP net income increased to $210.7 million , or $1.70 per diluted share, as compared to $78.8 million , or $0.67 per diluted share, for the year-ago period. The largest contributors to net revenue in fiscal third quarter 2014 were Grand Theft Auto V, NBA 2K14, and WWE 2K14. Non-GAAP net revenue from digitally-delivered content grew 42 percent year-over- year to $132.8 million , driven by the Grand Theft Auto series, the NBA 2K franchise, and offerings for Borderlands 2 and BioShock Infinite. Catalog sales accounted for $113.0 million of Non-GAAP net revenue led by offerings for Borderlands 2, the Grand Theft Auto series, XCOM : Enemy Unknown, BioShock Infinite, and Sid Meier's Civilization V. Management Comments "Take-Two's business continued to outperform expectations significantly during the fiscal third quarter," said Strauss Zelnick , Chairman and CEO of Take-Two. "Our results were driven by robust holiday demand for Grand Theft Auto V, the franchise record- breaking launch of NBA 2K14, the successful release of WWE 2K14, and strong growth in digitally-delivered revenues led by Grand Theft Auto Online. Take-Two was the top video game publisher of 2013, according to the NPD Group , underscoring our positive momentum over the past year. "As a result of our third quarter performance, we have once again raised our revenue and earnings outlook for fiscal 2014, which is poised to be a record year for Take-Two. Looking ahead, we firmly expect to deliver Non-GAAP earnings in fiscal 2015 and every year for the foreseeable future. This confidence is based on our development pipeline of groundbreaking new intellectual properties and offerings from our proven franchises, which bear the hallmark of our commitment to provide the highest quality entertainment experiences." Business and Product Highlights Since October 1, 2013 : Take-Two finished as the top video game publisher of 2013.* Take-Two deployed $276.8 million to repurchase 16.24 million shares of its common stock, including 12.02 million shares repurchased from the Icahn Group . Rockstar Games : Launched Grand Theft Auto Online, the dynamic and persistent online game, which is free with every copy of Grand Theft Auto V. Grand Theft Auto V finished as the best-selling video game of 2013.* To date, Grand Theft Auto V has sold-in more than 32.5 million units. Released Grand Theft Auto: San Andreas for select iOS, Android, Amazon Kindle and Windows Phone devices. 2K: Launched NBA 2K14, which is the fastest-selling release in the history of our top-selling and top-rated NBA video game simulation franchise** that has sold-in nearly 35 million units to date. Developed by Visual Concepts, NBA 2K14 has already sold-in more than 5 million units and is Take-Two's first offering for the PlayStation4 computer entertainment system and Xbox One, the all-in- one games and entertainment system from Microsoft . The title is also available for the Xbox 360, PS3 and PC. Launched WWE 2K14 for the Xbox 360 and PS3. Developed by Yukes, WWE 2K14 is being supported with downloadable add-on content, including a Season Pass . Released the Borderlands 2 Game of the Year Edition for the Xbox 360, PS3 and PC. Borderlands 2 is now the highest-selling title in 2K's history with more than 8.5 million units sold-in to date. Released XCOM : Enemy Within, the expanded experience of Firaxis Games' "Game of the Year" award-winning strategy title, XCOM : Enemy Unknown, for the Xbox 360, PS3, PC and Mac. Announced that Evolve is planned for launch on the Xbox One, PS4 and PC in fall 2014. Developed by Turtle Rock Studios , the renowned creators of Left 4 Dead, Evolve is an all-new shooter that blends cooperative and competitive multiplayer experiences. Financial Outlook for Fiscal 2014 Take-Two is increasing its financial outlook for fiscal year 2014 primarily to reflect its strong fiscal third quarter results and lower share count due to its repurchase of 16.24 million shares in November, 2013. Headquartered in New York City , Take-Two Interactive Software, Inc. is a developer, marketer and publisher of interactive entertainment for consumers around the globe. The Company develops and publishes products through its two labels Rockstar Games and 2K. More Information: take2games.com ((Comments on this story may be sent to newsdesk@closeupmedia.com ))


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