This is our first report on Take-Two Interactive Software, a well-known developer, publisher, and marketer of games and interactive entertainment for consumers across the globe. The company delivered a disappointing result in the past quarter failing to meet Wall Street expectations in terms of revenues as well as earnings. It reported net bookings of $1.5 billion which was above management expectations. Even as customers continue to manage the effects of different socioeconomic and geopolitical concerns, the company experienced solid player engagement, driven by new game releases, post-launch content updates, and bold beats for several mobile services. They made progress in integrating Zynga and are excited about the industry’s tremendous long-term growth potential. During the quarter, Grand Theft Auto Online launched its major update, The Criminal Enterprises, offering expanded gameplay across the criminal careers of executives, bikers, nightclub owners, and gun-runners, as well as the chance to collaborate with federal agents to uncover a criminal conspiracy in the new Operation Paper Trail series of contact missions. In addition, the membership of Rockstar Games’ GTA+ subscription service expanded significantly. With more than 2 million daily active users and a 4% increase in the average number of days played, player engagement has also been relatively high. We initiate coverage on the stock of Take-Two Interactive Software with a ‘Buy’ rating.
Our Report Structure:
⦁ Company Overview
⦁ Investment Thesis
⦁ Key Drivers
⦁ Historical Quarterly Statement Analysis – Income Statement & Cash Flows
⦁ Historical Quarterly Balance Sheet Analysis
⦁ Historical Annual Financial Statement Analysis
⦁ Analysis Of Key Financial Ratios
⦁ Financial Forecasts For 3 Years
⦁ Forecasting The Capital Structure & Net Debt
⦁ Discounted Cash Flow Valuation
⦁ Trading Multiples
⦁ Key Risks
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