NEW YORK (AP) — Video game publisher Take-Two Interactive Software Inc. posted a smaller loss for its fiscal first-quarter as lower expenses outweighed a revenue decline.
The results surpassed Wall Street's expectations and the New York-based company's stock got a boost in after-hours trading.
The company behind "Grand Theft Auto" and "Borderlands" games posted a loss of $61.9 million, or 71 cents per share, in the April-June period. That compares with a loss of $110.8 million, or $1.30 per share, a year ago.
Excluding one-time items, Take-Two's loss was $47.1 million, or 54 cents per share, in the latest quarter.
Revenue fell 37 percent to $142.7 million from $226.1 million, largely because Take-Two did not have any big game launches during the quarter. This also kept marketing and other expenses lower, helping the company narrow its loss.
Adjusted revenue was $144.3 million, surpassing Wall Street's expectations. The adjusted figures exclude special items and account for the effects of deferring revenue and the related cost of sales for games with online components. Like other video game companies, Take-Two spreads these out over time, while the game is played, rather than all at once.
Analysts, on average, were expecting a bigger adjusted loss of 57 cents per share on lower revenue of $131.7 million, on an adjusted basis.
For the current quarter, Take-Two expects adjusted earnings of $1.20 to $1.35 per share on revenue of $750 million to $800 million.
Analysts were expecting earnings of $1.57 per share on revenue of $818.1 million.
Take-Two raised its full-year guidance. It now expects adjusted earnings of $2.25 to $2.50 per share on revenue of $1.78 billion to $1.88 billion. In May, it had forecast adjusted earnings of $2.05 to $2.30 per share and adjusted revenue of $1.75 billion to $1.85 billion.
Analysts were expecting earnings of $2.35 per share on revenue of $1.86 billion.
The launch of the hotly anticipated "Grand Theft Auto V" on Sept. 17 will likely drive the results for the quarter — and the year.
Chairman and CEO Strauss Zelnick said that revenue from "digitally delivered content" such as downloads more than doubled during the quarter. This accounted for more than half of the quarter's adjusted revenue, thanks largely to downloadable add-on content for "Borderlands 2."
Take-Two's shares climbed 26 cents, or 1.5 percent, to $17.25 in after-hours trading.