Take-Two Interactive Stock: Profit Surge Expected

Last Updated: 18. Dezember 2023By

Today I would like to introduce you to a company that is currently causing quite a stir among fans: Take-Two Interactive (WKN: 914508, ISIN: US8740541094, Symbol: TTWO) is a leading gaming conglomerate based in New York. The innovative game smith develops its games for consoles and PCs as well as for tablets and smartphones. The sale takes place via stationary retail, digital downloads, online platforms and cloud streaming services.

Blockbuster game GTA VI eagerly awaited by fans The company is best known for the popular game Grand Theft Auto (GTA) from the subsidiary Rockstar Games, whose fifth version has already sold more than 190 million (!) Copies and is one of the most successful online games ever. Number six, GTA VI, is eagerly awaited by fans, the release of the gangster and racing game is planned for the financial year 2024/25 beginning in April. A video trailer released on YouTube a few days ago already had more than 100 million (!) Views in the first 24 hours. The scenes shown look almost as realistic as real film recordings.

Another blockbuster: Red Dead Redemption The western series Red Dead Redemption also developed into a blockbuster. The wild west game also achieved 81 million sales. Work is also feverishly being done on the successor version Red Ded Demption III, but no release date has yet been announced. In addition, there are also e-sport titles in the range such as the games NBA 2K24 (basketball) and many smartphone games from the new subsidiary Zynga, taken over in 2022.

Lucrative source of income: micro-transactions during the game A lucrative source of income for Take Two Interactive are so-called microtransactions. By paying small additional amounts, advantages such as shortcuts, virtual aids or special abilities can be purchased during the game. There are usually no limits upwards, each player decides for himself how much money he spends. This can be several hundred euros that accumulate over time. Microtransactions have therefore become one of the most important sources of income for Take Two.

Triple profit jump expected next year In the last three years, sales have risen on average by +22%, while profits have remained the same. In the 2nd quarter of 2023/24 there was a decrease in sales bookings of -4% to 1.44 billion USD. The earnings per share fell by -6% to 1.22 USD. Nevertheless, the analyst estimates of 1.03 USD profit per share were clearly exceeded. For the year 2023/24 analysts expect a sales increase of +4% to 5.48 billion USD, as well as a profit of 3.21 USD (-8%) per share. For the year 2024/25 beginning in April, sales of 7.9 billion USD (+44%) and approximately 7.45 USD (+132%) profit per share are expected.

Share price has been trending upwards for many years Annual chart Take Two Interactive share, Source: Stock Screener

Online gaming champion with potential for surprises For Take Two Interactive, the financial year up to March is rather a quiet year, as the long-awaited release of GTA 6 is only planned for the new financial year. The release could turn out to be a historical success, as there is already a real hype about the video game snippets released. Analysts expect a strong increase in sales and profits. The great commotion could help the share price to further price increases. It could therefore be worthwhile for you to take a look at the value.