Take-Two Interactive (TTWO 72.35, +3.31) has spiked 4.7% after reporting solid results for the fourth quarter.
The video game publisher reported fourth quarter earnings of $0.89 per share on a 52.0% year-over-year increase in revenue to $571.60 million. Adjusted revenue grew 18.9% year-over-year to $407.20 million, which was ahead of expectations.
Top contributors to revenue included the aging Grand Theft Auto franchise and titles like Mafia III, NBA 2K17, WWE 2K17, and Sid Meier's Civilization VI.
Net revenue from digital channels increased 43.0% to $278.70 million. This increase was driven by recurrent consumer spending on items like virtual currency, add-on content, and microtransactions. Grand Theft Auto V and Grand Theft Auto Online were the biggest contributors to revenue from digital channels.
Bookings increased 14.0% year-over-year to $370.60 million, ahead of the company's guidance for bookings between $295 million and $345 million. Bookings from recurrent consumer spending increased 64.0% year-over-year, representing 50.0% of total bookings.
Take-Two issued guidance for the fiscal year, expecting earnings between $4.35 per share and $4.65 per share. Revenue is expected between $1.95 billion and $2.05 billion while adjusted revenue is expected between $1.42 billion and $1.52 billion. For the first quarter, the company expects earnings between $0.65 per share and $0.76 per share on revenue between $390 million and $440 million. Adjusted revenue is expected between $240 million and $290 million.
It is worth pointing out that the company has delayed the release of Red Dead Redemption 2, which is expected to be Take-Two's next blockbuster title. The game was slated for the fall, but has now been pushed to spring. These types of delays are not uncommon when dealing with highly-anticipated titles and they are meant to iron out bugs that could invite negative user feedback, and by extension bad publicity, associated with buggy releases.