Integrated into the group exactly 39 days before closing the accounts for the quarter, Zynga is already in the process of transforming the characteristics of Take-Two Interactive. If it sees its turnover increase sharply to exceed one billion euros, it is largely thanks to the mobile whose share of revenue represents 34% against 10% before the acquisition of Zynga. Consoles remain in the majority and represent 55% of the group’s total turnover.
But the costs associated with acquiring a big fish like Zynga are reflected in a different way in profits, which are turning into losses for the first time in a very long time at Take-Two Interactive. The Strauss Zelnick group therefore begins the fiscal year with a net loss of 102 million euros and anticipates an annual loss close to 400 million euros for the entire financial year ended March 31, 2023.
“We are pleased with Zynga’s contribution for the quarter, which significantly complemented our results“, commented the CEO during his presentation, while acknowledging that the results are not as flattering as expected due to a low number of major releases and a normalization of engagement after two years boosted by the pandemic. .
In the meantime, the acquisition of Zynga transforms Take-Two Interactive a little more into a publisher whose vast majority of income comes from in-game purchases and therefore from dematerialized. “Recurring consumer spending (including virtual currency, additional content, in-game purchases and in-game advertising) increased by 44% and accounts for 75% of total revenue. Digitally generated revenue increased 40% to $1 billion from $740.8 million in the fiscal first quarter of last year, and represents 94% of total net revenue“, can we read.
In this context, the main contributors of the quarter are NBA 2K22, Grand Theft Auto Online and Grand Theft Auto V, Red Dead Redemption 2 and Red Dead Online, Empires & Puzzles, Tiny Tina’s Wonderlands, WWE 2K22, Rollic’s hyper-casual catalog , Toon Blast, The Quarry and Top Eleven, a list that already highlights the importance of mobile.
Continuing its small marathon, Grand Theft Auto V is approaching 170 million copies sold worldwide, which makes 380 million for the franchise. Red Dead Redemption 2 reaches the superb figure of 45 million and 68 million for the franchise. A word also for Borderlands 3 which exceeds 15 million copies, pushing the Gearbox franchise into 75 million. Now the franchise at the top of its genre, NBA 2K22 has surpassed 12 million copies distributed worldwide, outperforming its predecessor. The NBA 2K franchise now has over 125 million games. Special mention also for PGA Tour 2K21 which has reached the 3 million mark and whose successor will be faced with the return of EA Sports to the golf course in early 2023.
After Rollerdrome which will be available on August 16, the next big title is none other than NBA 2K23 (September 9). On the other hand, the tactical role-playing game Marvel’s Midnight Suns has been postponed once again and is therefore no longer expected on October 7. On PS5, Xbox Series and PC, the next Firaxis Games is however maintained for the fiscal year and could therefore be released in early 2023, not far from Kerbal Space Program 2. On PS4, Xbox One and Switch, the game’s release is however more blurred. PGA Tour 2K23 and WWE 2K23 don’t have a date yet, as does Gearbox’s upcoming Tales from the Borderlands, but they too are expected no later than March 2023.
With Zynga now part of the family, Take-Two Interactive has naturally reworked its objectives for the entire fiscal year and forecasts a turnover of between 5.6 and 5.7 billion euros. It may not be enough to overtake EA and Activision just yet, but Take-Two Interactive may well have the wherewithal to compete for the title of America’s biggest publisher very soon. According to internal estimates, Zynga and other T2 Mobile games will account for 45% of annual revenue, ahead of 2K Games (37%), Rockstar Games (17%) and Private Division (1%). On the other hand, as we said above, the acquisition of Zynga will have a severe impact on the accounts: an annual net loss of at least 400 million euros is expected.
Also to know →
- The integration of Zynga has enabled Take-Two to accelerate its growth dramatically: the group had 6,042 employees as of June 30, 2022, compared to 5,079 a year earlier.
- Without revealing any data, management says it is satisfied with the player engagement of WWE 2K22, which has successfully revived the franchise after a year of necessary rethinking.