Take-Two Interactive reported strong results for the second quarter of its fiscal 2020. The publisher had net revenue of $857.8 million, which is up 74% year-over-year compared to $492.7 million. Most of that growth came from what Take-Two calls “recurrent consumer spending,” which is its term for microtransactions. That category was up 32% year-over-year for the company. It made up 37% of Take-Two’s total net revenue.
In its press release, Take-Two credits a familiar crop of games for getting players to spend more money. Those include Grand Theft Auto Online, Red Dead Online, and the NBA 2K games. Borderlands 3 and NBA 2K20 also contributed significantly to the company’s quarterly revenues.
“Our positive momentum continued in the second quarter, enabling our company to generate operating results that significantly exceeded our expectations,” Take-Two chief executive Strauss Zelnick said. “Once again, our strategy of creating the highest-quality entertainment in the industry translated into outstanding results.”
Take-Two is raising guidance after its strong Q2
Now, Take-Two is expecting even more for fiscal year 2020.
The publisher now expects to generate revenues of $2.93 billion to $3.03 billion. That is up from previous guidance of $2.7 billion to $2.8 billion.
“The third quarter is off to a solid start with the launches of The Outer Worlds, Red Dead Redemption 2 for PC, and WWE 2K20,” said Zelnick. “And we will bolster our holiday line-up with offerings for Google Stadia and Sid Meier’s Civilization VI for PlayStation 4 and Xbox One.”
And a huge chunk of delivering those results will fall on that aforementioned recurrent consumer spending. But the company also has plans to launch new games. Those include both sequels as well as completely new properties.
“Throughout the fiscal year, we will continue to support our titles with experiences designed to captivate audiences and drive ongoing engagement, including new content for Grand Theft Auto Online and Red Dead Online,” said Zelnick. “Looking ahead, Take-Two has the strongest development pipeline in its history, including sequels from our biggest franchises as well as exciting new IP. We are actively investing in emerging markets, platforms, and business models, and are exceedingly well positioned to capitalize on the positive trends in our industry and to generate growth and margin expansion over the long-term.”