TAKE TWO INTERACTIVE SOFTWARE INC Q2 FY2025 earnings call

• Strauss Zelnick noted strong second quarter results with net bookings at the top of guidance, driven by Grand Theft Auto and Borderlands franchises. Sales of Grand Theft Auto V exceeded expectations with over 205 million units sold worldwide. GTA Online had strong engagement. Red Dead Redemption 2 sold over 67 million units. NBA 2K25 launched successfully with double-digit growth in average revenue per user. Zynga had solid results with Match Factory! and Toon Blast. Nordeus released Top Eleven 2025. - Karl Slatoff discussed upcoming titles like Grand Theft Auto VI, Borderlands 4, and Mafia: The Old Country. Rockstar plans to bring GTA Online PC features. Sold private division label to focus on core and mobile businesses. - Lainie Goldstein mentioned achieving strong results, reiterated fiscal 2025 net bookings guidance, forecasted recurrent spending growth, and provided guidance for the fiscal third quarter.

Net bookings for the second quarter were $1.47 billion, which was at the top of the guidance range. Recurrent consumer spending rose 6% for the period, accounting for 81% of net bookings. Mobile saw high single-digit growth driven by Match Factory! and Toon Blast, partially offset by declines in hypercasual mobile portfolio and Empires & Puzzles. NBA 2K grew low single digits, while Grand Theft Auto Online was relatively flat. Net bookings breakdown by labels is roughly 51% Zynga, 32% 2K, and 17% Rockstar Games. Geographic net bookings split is about 60% United States and 40% international.

• Reiterated fiscal 2025 net bookings guidance range of $5.55 billion to $5.65 billion. - Expected recurrent consumer spending to grow approximately 4%, representing 78% of net bookings. - Projected net bookings breakdown by labels: ~51% Zynga, 32% 2K, 17% Rockstar Games. Geographic split: ~60% US, 40% international. - Non-GAAP adjusted unrestricted operating cash flow expected to be an outflow of $150 million. - Fiscal third quarter net bookings projected to range from $1.35 billion to $1.4 billion.

Q: Doug Creutz asked about core titles and if they were still in the software line-up; A: Lainie Goldstein said labels will provide more detail when ready and they don't update release expectations unless financially necessary Q: Eric Handler asked about mobile growth and mobile industry; A: Karl Slatoff said Match Factory! and Toon Blast contributed to mobile growth, and he's sanguine about the mobile industry with consumers rewarding risk-taking; Q: Eric Handler asked about mobile advertising and user acquisition; A: Karl Slatoff said they use multiple third parties and their internal database; Q: Colin Sebastian asked about industry trends and new IP; A: Strauss Zelnick talked about industry maturation, quality standards, and their diverse IP portfolio; Q: Colin Sebastian asked about GTA performance improvement; A: Lainie Goldstein said it's broad based; Q: Andrew Marok asked about fiscal 2027 assumptions; A: Strauss Zelnick said pipeline is robust but wouldn't announce 2027 pipeline; Q: Andrew Marok asked about NBA 2K paid game mode; A: Strauss Zelnick said it's an innovation example; Q: Cory Carpenter asked about selling Private Division; A: Strauss Zelnick said it was to focus on core and mobile, and Lainie Goldstein said P&L impact was immaterial; Q: Ed Alter asked about NBA 2K review scores and sales; A: Karl Slatoff said higher reviews lead to engagement and economic improvements; Q: Benjamin Soff asked about Borderlands film and marketing timing; A: Strauss Zelnick said film benefit was immaterial and Lainie Goldstein said marketing timing shifted; Q: Mike Hickey asked about new consoles and Project Eagle; A: Strauss Zelnick said they support successful platforms and Project Eagle team got useful feedback; Q: Arthur Chu asked about NBA 2K monetization drivers; A: Strauss Zelnick said quality drives user growth and spending; Q: Eric Sheridan asked about sports gaming and new IP; A: Strauss Zelnick talked about sports portfolio opportunities and importance of new IP; Q: Clay Griffin asked about Xbox platform and Android app stores; A: Strauss Zelnick said they support platforms and believe in declining distribution costs; Q: Chris Schoell asked about fiscal 4Q drivers and Netflix partnership; A: Lainie Goldstein said Civ 7, PGA, and WWE releasing in 4Q, and Strauss Zelnick said they value Netflix partnership and may scale licensing