Will analyst sentiment continue to rise from 11% increase in previous earnings call?

Will analyst sentiment continue to rise from 11% increase in previous earnings call?

Take-Two Interactive Software Inc (Take-Two) is scheduled to release its earnings on 17 May 2023. Analyst sentiment was up 11% in Q1 2023 over Q4 2022 with optimism around the Zynga acquisition, cost reduction initiatives, and digital net bookings, according to GlobalData, a leading data and analytics company. Gain a comprehensive understanding of Take-Two with our in-depth company profile report, available for purchase.


Summary for earnings call transcript released in Q1 2023:

  • Analysts were more optimistic about the market in Q1 2023 than they were in Q4 2022, with an 11% increase in sentiment.
  • Management was also more optimistic, with a 5% increase in sentiment
  • The company expected growth in the next few years due to synergies from the Zynga acquisition, new title releases, and cost savings initiatives
  • Take-Two had net bookings of $1.38 billion, slightly below their previous guidance due to cautious purchasing behaviors during the holiday season
  • The largest contributors to its net bookings are expected to be NBA 2K, Grand Theft Auto Online, Empires and Puzzles, Toon Blast, and Rollic’s hyper-casual mobile portfolio
  • Take-Two anticipated higher marketing and personnel expenses, offset by the realization of some cost synergies
  • The company considered implementing a cost-cutting strategy aimed at improving margins and creating long-term efficiency and agility

Rinaldo Pereira, Business Fundamentals Analyst at GlobalData, comments: “With the acquisition of GameClub in March 2023, Take-Two seems to be showing increasing commitment towards mobile gaming. Take-Two is possibly looking at a subscription-based model via GameClub for its larger portfolio games to improve profitability and further expand its direct-to-consumer efforts in the mobile segment. By strategically acquiring both GameClub and Zynga, the company appears to be building a diversified portfolio of mobile games.”

A look at GlobalData’s Job Analytics database also suggests that the company didn’t post as many jobs in Q1 2023 as it did in Q1 2022, with posted jobs being down by over 70%.

Pereira adds: “Despite the deceleration in job postings, Take-Two is actively pursuing avenues to broaden their outreach to emerging Asian markets. An example of this pursuit is the company’s strategic collaboration with Game Freak, aimed at publishing an innovative game, currently referred to as Project Bloom.”

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