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Take-Two cuts guidance after surprise loss in Q3 as mobile advertising sags

February 8, 2024 4:33 PM

Investing.com -- Take-Two (NASDAQ: TTWO) reported Thursday a surprise fiscal third-quarter loss and cut its annual guidance as the video game maker as softness in softer mobile advertising and weaker sales for NBA 2K24 basketball franchise.

Take-Two Interactive Software (NASDAQ: TTWO) fell more than 5% after-hours following the report.

The company reported an adjusted loss of $0.54 on revenue of $1.37 billion, missing estimates for earnings of $0.72 a share and revenue of $1.34B.

Net Bookings - the net amount of products and services sold digitally or sold-in physically - fell 3% to $1.34 billion.

Looking ahead to fiscal 2024, the company cut its forecast for net booking to a range of $5.25B to $5.3B from $5.45B to $5.55B. Net loss for per share is now forecast between $5.95 to $5.85 on revenue of $5.27B to $5.32B, That compared with prior estimates for a loss of $5.62 to $5.35 on revenue of between $5.37B to $5.47B.

The company singled out "some softness in mobile advertising and sales for NBA 2K24," as well as increased marketing costs to support Zynga’s new mobile game, Match Factory! for reduction in its annual forecast.


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