Take-Two Pushes Back One of Its Games, Hurting Annual Forecast
Take-Two Pushes Back One of Its Games, Hurting Annual Forecast
(Bloomberg) -- Take-Two Interactive Software Inc., the video-game maker behind Grand Theft Auto and Battleborn, is delaying one of its key games until fiscal 2020, hurting its annual outlook for the current year.
Revenue will be $2.67 billion to $2.77 billion in fiscal 2019, excluding some items, the company said on Wednesday. Analysts had projected $2.87 billion. Earnings also fell short of Wall Street predictions in the period.
Take-Two pushed back a title from its 2K division, so the launch won’t show up in its results until 2020. The New York-based company wanted to allow “additional development time,” Chief Executive Officer Strauss Zelnick said in a statement. “We remain as excited as ever about this title, and expect it to enhance our results next fiscal year.”
Matthew Kanterman, an analyst with Bloomberg Intelligence, speculates that the game in question is Borderlands 3.
The shares fell as low as $104.60 in extended trading, though they later rebounded. The stock had been up 3 percent this year through Wednesday’s close.
The company expects adjusted earnings of as much as $4.22 a share in the coming year. Analysts estimated $4.77.
To contact the reporters on this story: Nick Turner in New York at nturner7@bloomberg.net, Christopher Palmeri in Los Angeles at cpalmeri1@bloomberg.net.
To contact the editors responsible for this story: Nick Turner at nturner7@bloomberg.net, Lisa Wolfson
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