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Take-Two Interactive reports better-than-expected revenue

Key Points
  • Take-Two interactive, the parent company of Rockstar Games and 2K, beat revenue estimates for its 2019 fiscal second quarter.
  • The company released the blockbuster game "Red Dead Redemption 2" earlier this year.
  • It raised its guidance for its fiscal year ending March 31.
Strauss Zelnick, CEO, Take-Two Interactive Software
Scott Mlyn | CNBC

Take-Two Interactive reported earnings for its 2019 fiscal second quarter after the bell on Wednesday. The company is known best for developing popular videogames like "Red Dead Redemption" and "Grand Theft Auto" as the parent company of Rockstar Games and 2K.

The stock was up over 2.5 percent after the bell.

Here are the key numbers:

  • Revenue: $583 million vs. $550 million estimated, according to Refinitv

Take-Two reported a net income increase of $25.4 million compared to the net loss of $2.7 million it reported for the comparable period a year before. It raised its outlook for its fiscal year ending March 31. It now expects GAAP net revenue of $2.55 billion to $2.65 billion, compared to the $2.50 billion to $2.60 billion it expected as of last quarter.

Guidance was bolstered by the blockbuster release of Rockstar's "Red Dead Redemption 2." The Wild West-themed game raked in a record $725 million in worldwide retail consumer sales in the first three days on the shelves. In a statement last month, Take-Two said it was "the single-biggest opening weekend in the history of entertainment," even topping Disney's record opening weekend for "Avengers: Infinity War," which grossed over $640 million, according to Box Office Mojo data.

The launch of "Red Dead Redemption 2" fell only behind another Rockstar release for the highest grossing entertainment launches, according to Take-Two. "Grand Theft Auto V" made over $1 billion in retail sell-through in the first three days of its mid-week release in 2013.

Take-Two Interactive has had to contend with with popular online games like Fortnite that are free to play. Rockstar Games has said it would release a public beta of "Red Dead Online" this month, which will be available for free to players who already own "Red Dead Redemption 2" for PlayStation 4 or Xbox One.

In its last earnings report, Take-Two beat analyst expectations on quarterly revenue, reporting $288.3 million in adjusted revenue compared to estimates of $258.4 million, according to Refinitiv.

-CNBC's Eustance Huang and Reuters contributed to this report.

Take Two reports revenue beat