San Andreas Fuels Take-Two Success News

The continued success of the GTA franchise helped Take-Two to record quarterly revenue, as the US publisher today delivered its first quarter financial results ended January 31st, 2005.

Net Sales for the first quarter stood at $502.5 million compared to $375.5 for Q1 2004, representing an increase of 34%. As a result Net Income for the period rose to $55.2 million, marking a 74% increase from Net Income of $31.8 million a year previously.

Take-Two generated close to $185 million in operating cash flow during the quarter, bringing its total cash position close to $303 million as of January 31st 2005.

The higher the expected results were attributed to the success of GTA: San Andreas, which has gone on to exceed 12 million sales, along with robust sales of the 2K Sports franchise and improved performance of the companyâ??s Jack of All Games distribution subsidiary.

As a result Take-Two has updated its expectations for the fiscal 2005 year ending October 31st 2005, with Net Sales expected to raise from $1.3 billion to $1.35 billion; for the second quarter ending April 30th 2005 Net Sales of $200 to $210 million are expected and finally between $220 to $240 million in Q3 ending July 31st 2005.

Looking ahead to software line-ups, the report reveals that the Xbox and PC release of GTA: San Andreas are expected alongside the series debut on the Sony PSP for the third-quarter 2005. Midnight Club 3: DUB Edition will find a release shortly, with the forthcoming Paramount Pictures adaptation of The Warriors scheduled to follow in Q4 2005; intriguingly the report also mentions a new RockStar title scheduled for release during the same period.

The year looks positive for its newly formed 2K label having picked up the rights to Sid Meierâ??s Civilization franchise, along with a co-publishing agreement with Bethesda Softworks for the eagerly anticipated Elder Scrolls IV: Oblivion.

Paul Eibeler, President and Chief Executive Officer, stated, "Fiscal 2005 is off to a great start. We are extremely pleased with the continued success of Grand Theft Auto: San Andreas and Rockstar's plans to extend the reach of this blockbuster title to multiple platforms and the Asian market later this year. Additionally, we have made significant progress in diversifying our business, building our product pipeline and adding to our sports game development capabilities. We will continue to leverage our internal resources and invest in new opportunities, including extending our content to new hardware platforms. With our strong performance in the first quarter and our rapidly expanding portfolio of proven franchises, new brands and licensed properties, Take-Two is positioned for significant annual growth."