As a summary for the Take-Two earnings call transcript released in Q1 2023, analysts were more optimistic about the market in Q1 2023 than they were in Q4 2022. GlobalData reports an 11% increase in sentiment.
Management was also more optimistic, with a 5% increase in sentiment, with the company’s expected growth in the next few years would be a result of synergies from the Zynga acquisition, new title releases, and cost savings initiatives.
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.”
Take-Two had net bookings of $1.38 billion, and 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.
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%.
“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,” Pereira added.