Take-Two reported a strong Q1 FY27 with net bookings slightly above guidance, driven by NBA 2K and GTA Online. Management is reiterating its full-year guidance and highlighting record pre-orders for GTA VI, which will launch in November at a higher $80 price point. The call included several unique strategic announcements, including a Netflix partnership for the GTA VI trailer and an updated capex forecast. Q1 FY27 net bookings of $1.39B exceeded guidance, driven by NBA 2K26 and GTA.
Take-Two reported a strong Q1 FY27 with net bookings slightly above guidance, driven by NBA 2K and GTA Online. Management is reiterating its full-year guidance and highlighting record pre-orders for GTA VI, which will launch in November at a higher $80 price point. The call included several unique strategic announcements, including a Netflix partnership for the GTA VI trailer and an updated capex forecast. Q1 FY27 net bookings of $1.39B exceeded guidance, driven by NBA 2K26 and GTA.
Management reiterated fiscal 2027 net bookings outlook of $8-8.2 billion, citing strong pre-orders for GTA VI described as 'exceptional' and 'unprecedented,' with no pullback in consumer demand observed.
Guidance · revenue to $1.645B
Full-year FY27 net bookings guidance maintained at $8-8.2B, suggesting confidence in GTA VI launch.
GTA VI will be priced at $80 for the base game, a $10 increase over current AAA standards.
Management views AI as a tool to enhance creativity and efficiency, not to replace people, and does not expect it to reduce costs meaningfully but rather to increase quality and scale of entertainment products.
Management reiterated fiscal 2027 net bookings outlook of $8-8.2 billion, citing strong pre-orders for GTA VI described as 'exceptional' and 'unprecedented,' with no pullback in consumer demand observed.
Capital expenditures forecast raised to approximately $290 million due to a planned real estate purchase.
Management expressed optimism about GTA VI launch and fiscal 2027 as an inflection point, while remaining measured about pre-order conversion and not taking victory laps prematurely.
“Rockstar Games is known for over delivering... I think what we've decided to do makes a whole lot of sense in the context of what we're delivering.”
“I'm not prepared to tell you how it's going to go, but I feel really good about it. And of course, six hours after the initial launch on Netflix, it will be available on Rockstar Games channel on YouTube.”
“We now plan to deploy approximately $290 million of capital expenditures, which is up from our prior forecast due to a planned real estate purchase.”
“Cost of revenue rose 17% to $651 million, and included a $43 million impairment charge related to the decision not to proceed with an unannounced title from a third-party developer.”
“Recurrent consumer spending declined 1% for the period, which was favorable to our guidance of a 3% decline and accounted for 84% of net bookings.”
| 지표 | 기간 | 범위 | 중간값 | 상태 |
|---|---|---|---|---|
| Capex | FY2027 | 290 | 290 | RAISED |
| Op margin | FY2027 | 7% | 7% | LOWERED |
| Revenue | FY2027 Q2 | $1.62B–$1.67B | $1.645B | GUIDED |
| Revenue | FY2027 | $8B–$8.2B | $8.1B | MAINTAINED |
| 제시 시점 | 지표 | 목표 기간 | 가이던스 | 실제 | 결과 |
|---|---|---|---|---|---|
| FY2026 Q3 | Revenue | FY2026 Q4 | $1.51B–$1.56B | $1.6798B | Met / beat |
| FY2026 Q2 | Revenue | FY2026 Q3 | $1.55B–$1.6B | $1.699B | Met / beat |
Netflix has secured exclusive first-look rights to the GTA 6 extended look trailer, a major content acquisition that will drive subscriber engagement on the platform.
“This is the first of its kind partnership with Netflix. They're a great marketing partner for us and distribution partner, as you know.”
Hi, thanks for taking my questions. Maybe one on the GTA 6 extended look. I guess if you could give us a little bit more color on the thinking that went into the decision to go with Netflix for the timed exclusivity rather than just the traditional route of releasing it on a free platform like YouTube or through Rockstar Socials.
You know, this is the first of its kind partnership with Netflix. They're a great marketing partner for us and distribution partner, as you know. We also work with virtually every social media outlet on earth. This is part of Rockstar Games marketing strategy. We're excited for everyone to see an extended look of Grand Theft Auto 6. I'm not prepared to tell you how it's going to go, but I feel really good about it. And of course, six hours after the initial launch on Netflix, it will be available on Rockstar Games channel on YouTube and I think ultimately many other outlets.
The collaboration with Tencent in the Chinese mobile gaming market is delivering strong user growth and profitability, highlighting a successful international partnership.
“NBA 2K All-Star, our mobile title in China in partnership with Tencent, surpassed 10 million registered users since launching last year and is yielding strong profit margins.”
… higher player engagement with several features, including Dice Challenge, the title's latest permanent one-on-one game mode. Top 11 surpassed our expectations with net bookings increasing 15% year over year as fans enjoyed a special in-game event featuring player versus environment matches in 10 international locations. 2K's mobile offerings continue to perform well, with strong downloads and engagement across key titles. NBA 2K All-Star, our mobile title in China in partnership with Tencent, surpassed 10 million registered users since launching last year and is yielding strong profit margins. Our mobile direct-to-consumer channel remains a significant driver of revenue and margin enhancement, with many of Zynga's titles offering this feature and further growth anticipated. Guided by our core pillars to be the most creative, innovative, and efficient entertainment company in the world, our 13,000 colleagues share a singular vision for excellence and hit creation. Each day, we strive to bring joy to our player communities and value to our shareholders. I'd like to express my gratitude to our teams for their immense passion and unwavering commitment to our mission to make the …
The ongoing collaboration with Gearbox on the Borderlands franchise continues with new content drops, keeping the title engaged in the market.
… the 154th Open Championship at Royal Bercow Golf Club. The team is planning to launch Season 8 in late September and is hard at work on this year's release of PGA TOUR 2K27. 2K will share more details in the coming months. On July 14th, Rockstar Games launched the Quartz Center Heist for GTA Online, which introduced an all-new blockbuster heist targeting Los Santos' premier cultural institution with an array of artwork for the taking. On July 30th, 2K and Gearbox launched Bounty Pack 4, Murders and Acquisitions for Borderlands 4, which includes a new story mission and cosmetic items. Fans can look forward to even more action in September when Gearbox releases additional content, including the title's next story pack. On August 14th, 2K and Hangar 13 will release the Man of Honor story expansion for Mafia the Old Country. With Hangar 13's industry-leading capabilities and narrative-driven action titles, players will enjoy two new story chapters and all new content for the game's free ride mode. 2K and Visual Concepts will launch the WrestleMania 42 pack for WWE 2K26 on August 19th, followed by new seasons as part of the ringside pass during the fall. WWE 2K27 is currently in …
Visual Concepts' internal studio is credited with the continued success of the NBA 2K franchise, which could affect its valuation and strategic importance.
Zynga's performance is in line with expectations, with an anticipated 7% decline in mobile due to tough comps from Color Block Jam.
… to life. Global excitement for the launch of Grand Theft Auto VI continues to build, with the title having an exceptional start to pre-orders. With Rockstar Games' recent announcement of Grand Theft Auto VI and extended look coming on August 27th, we believe the consumer's passion and anticipation for the next evolution of this iconic series will grow further leading up to the title's November 19th release. Turning to our mobile business, Zynga performed in line with our expectations and we're pleased that many of our forever franchises continue to resonate with players. Net bookings for Tomb Blast grew 8% over last year. The title was supported by a new marketing campaign featuring Emmy nominated actor Giancarlo Esposito. Empires and Puzzles maintained steady momentum, anchored by a successful ninth anniversary campaign and the introduction of new heroes and character abilities. Words with Friends exceeded our forecast with net bookings growing 8% year over year, led by strong ad performance and higher player engagement with several features, including Dice Challenge, the title's latest permanent one-on-one game mode. Top 11 surpassed our expectations with net bookings …
The GTA VI extended look trailer will debut on Netflix before other platforms, indicating a new trend in exclusive trailer distribution partnerships. — Streaming platforms may be willing to pay for exclusive content previews, creating new revenue streams for game publishers.
Despite the success of the GTA series, recurrent consumer spending (RCS) overall only grew 3%, with mobile declining 7% year-over-year. — This suggests a cooling in the mobile gaming market, which could affect rivals like Electronic Arts that rely on mobile RCS.
… and unwavering commitment to our strategic vision. I'd like to thank our teams for their hard work, which has enabled us to reach this exciting point within our company's history. Turn into our results. We delivered first quarter net bookings of $1.39 billion, which was slightly above our guidance range of $1.32 to $1.37 billion. This primarily reflected better than expected performance from MBA 2K and the Grand Theft Auto series. Recurrent consumer spending declined 1% for the period, which was favorable to our guidance of a 3% decline and accounted for 84% of net bookings. MBA2K grew 7%, the Grand Theft Auto series rose 3%, and as expected, mobile declined 7% over last year. Gap net revenue increased 2% to $1.5 billion, while cost of revenue rose 17% to $651 million, and included a $43 million impairment charge related to the decision not to proceed with an unannounced title from a third-party developer. Operating expenses were flat at $918 million. On a management basis, operating expenses declined 1% year-over-year, which was favorable to our forecast of 3% growth due to timing of marketing expenses across our labels. With the ongoing positive trends in our business and …
GTA VI will be priced at $80 for the base game, a $10 increase, with a deluxe edition priced higher, setting a new price ceiling for AAA titles.