1Q22 Quarterly Results: Management Prepared Remarks

Take-Two Interactive’s first-quarter fiscal year 2022 results demonstrate a strong start to the year, characterized by net bookings of $711 million, which exceeded management’s initial expectations. This performance was primarily driven by sustained engagement in core franchises, specifically Grand Theft Auto V, Grand Theft Auto Online, Red Dead Redemption 2, Red Dead Online, and Borderlands 3. While recurrent consumer spending declined 25% year-over-year as global pandemic-related consumption patterns began to stabilize, the figure remained significantly higher than in the first quarter of fiscal 2020.

The company continues to prioritize long-term growth through strategic investments in talent, infrastructure, and mobile expansion, highlighted by the recent acquisitions of Nordeus and Dynamixyz. Mobile gaming remains a key focus, with the integration of Social Point, Playdots, and Nordeus into a unified mobile division intended to leverage cross-team expertise and cost synergies. Despite the strong quarterly performance, management reiterated its full-year net bookings guidance of $3.2 to $3.3 billion, noting that outperformance in the first quarter is being offset by the shifting of two immersive core titles to later in the fiscal year.

Geographically, the company expects a split of approximately 60% in the United States and 40% internationally for the full year. Digital delivery continues to represent the vast majority of the business, accounting for 96% of net bookings in the first quarter, with console digital sales penetration rising to 73%. Looking ahead, the company maintains an optimistic outlook, citing a robust multi-year pipeline of new releases and ongoing content updates as the primary catalysts for achieving record-level operating results in the coming years.