It’s only been a few months since Rockstar Studios’ released Red Dead Redemption 2. However, it would appear that the game has already garnered some serious sales numbers. Now parent company Take-Two Interactive has decided to come forward with the details.
While titled Red Dead Redemption 2, the game is actually a prequel to 2010’s Red Dead Redemption. Starring Arthur Morgan, the game centers around the Dutch Van der Linde gang during 1899. Featuring a slew of interesting characters and set in the American wild west, Arthur Morgan is sent on an adventure that will change him forever.
Take-Two Interactive has now come forward with a detailed report of their fiscal third quarter. Within, the company revealed that Red Redemption 2 has “sold-in more than 23 million units worldwide.” It’s important to note that “sold-in” means that the game copies were sold to retailers, rather than directly to customers. However, this value is still a great way to gauge the game’s sales.
Check out Take-Two Interactive’s full statement concerning the success of their fiscal third quarter and the success of Red Dead Redemption 2 down below.
“NEW YORK–(BUSINESS WIRE)–Feb. 6, 2019– Take-Two Interactive Software, Inc. (NASDAQ:TTWO) today reported strong results for its fiscal third quarter 2019 ended December 31, 2018. In addition, the Company provided its initial outlook for its fiscal fourth quarter ending March 31, 2019, and raised its outlook for its fiscal year ending March 31, 2019. For additional information, please see the fiscal third quarter 2019 results slide deck posted to the Company’s investor relations website at https://ir.take2games.com.
“Fiscal Third Quarter 2019 Financial Highlights
“On April 1, 2018, the Company adopted FASB ASU 2014-09 (Topic 606), Revenue from Contracts with Customers. Topic 606 significantly changes how the Company recognizes and reports net revenue and net income; however, it does not materially impact Net Bookings (our operational metric). Financial data for periods prior to April 1, 2018 has not been restated.
“Net revenue grew to $1.249 billion, as compared to $480.8 million in last year’s fiscal third quarter. Recurrent consumer spending (virtual currency, add-on content and in-game purchases, including the allocated value of virtual currency and add-on content included in special editions of certain games) increased and accounted for 24% of total net revenue. The largest contributors to net revenue in fiscal third quarter 2019 were Red Dead Redemption 2, NBA® 2K19 and NBA 2K18, Grand Theft Auto® Online and Grand Theft Auto V, WWE® 2K19 and WWE® SuperCard, Dragon City and Monster Legends, and Sid Meier’s Civilization® VI.
“Digitally-delivered net revenue grew to $594.7 million, as compared to $258.4 million in last year’s fiscal third quarter, and accounted for 48% of total net revenue. The largest contributors to digitally-delivered net revenue in fiscal third quarter 2019 were Red Dead Redemption 2, Grand Theft Auto Online and Grand Theft Auto V, NBA 2K19 and NBA 2K18, WWE 2K19 and WWE SuperCard, Monster Legends and Dragon City, and Sid Meier’s Civilization VI.
“Net income increased to $179.9 million, or $1.57 per diluted share, as compared to $25.1 million, or $0.21 per diluted share, for the comparable period last year. Net income included a favorable impact from the release of certain valuation allowances on the Company’s deferred tax assets resulting in the recognition of a $108.7 million tax benefit in the quarter. Without the release of the valuation allowances, the third quarter tax benefit would have been $11.3 million.
“During the 9-month period ended December 31, 2018, net cash provided by operating activities grew 62% to $390.2 million, as compared to $241.1 million in the same period last year. During the 9-month period ended December 31, 2018, Adjusted Operating Cash Flow (Non-GAAP), which is defined as GAAP net cash from operating activities, adjusted for changes in restricted cash, grew 188% to $587.0 million, as compared to $204.1 million in the same period last year (please see the section below titled “Non-GAAP Financial Measure” for additional information). As of December 31, 2018, the Company had cash and short-term investments of $1.601 billion.
“Take-Two delivered better-than-expected results in the fiscal third quarter,” said Strauss Zelnick, Chairman and CEO of Take-Two. “Our outperformance was driven primarily by the record-breaking launch of Red Dead Redemption 2 along with strong results from NBA 2K19. In addition, consumers engaged significantly with our offerings, and recurrent consumer spending grew 31% to a new record. We generated strong cash flow and ended the period with $1.6 billion in cash and short-term investments, after deploying $109 million to repurchase 1 million shares of our stock.
“As a result of our outstanding third quarter performance, we are raising our outlook for fiscal 2019, which is poised to be a record year for Net Bookings and Adjusted Operating Cash Flow. Looking ahead, as our industry continues to embrace new technologies that enhance consumers’ experience with, and access to interactive entertainment, we remain focused on broadening the reach of our content and expanding further globally. Take-Two is exceedingly well-positioned – creatively, strategically and financially – to capitalize on the vast opportunities that will shape the future of our business, and to deliver long-term growth and margin expansion.”
“Launched Red Dead Redemption 2 for PlayStation 4 and Xbox One. Told across the deepest and most expansive Rockstar Games’ world to date, Red Dead Redemption 2 is the label’s first game built from the ground up for the current console generation. The title received outstanding reviews, with numerous influential critics awarding Red Dead Redemption 2 a perfect score, and the title also received multiple game of the year awards. Red Dead Redemption 2 has also been a massive commercial success and has set numerous records, including the biggest opening weekend in retail sell-through across all entertainment releases (over $725 million), and the second biggest launch (three days) in retail sell-through across all entertainment releases (next to Grand Theft Auto V). According to The NPD Group, based on combined physical and digital sales in the U.S., Red Dead Redemption 2 was the best-selling video game of 2018. To date, Red Dead Redemption 2 has sold-in more than 23 million units worldwide.”