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Take-Two Income Declines Significantly

After months of dreary news for Take-Two, no good news came today as financial results were reported for the fourth quarter and fiscal year ended October 31, 2005. Though unchanged from its previously announced preliminary results (which were previously lowered), net revenues for the fourth quarter ending October 31, 2005 were $308.2 million compared to $438.0 million for the same period a year ago. Net income for the quarter was also down significantly, coming in at $19.2 million, compared to $62.6 million a year prior.

Net revenues for the fiscal year ended October 31, 2005 increased 6% to $1.20 billion from $1.13 billion for the prior year. Net income of $37.5 million for fiscal 2005 compared to net income of $65.4 million for the prior year. Take-Two attributes the 2004 launch of Grand Theft Auto: San Andreas for the PlayStation 2 as the reason for the steep declines in their financial results in fiscal 2005. Take-Two’s stock was down $.33 for the day, before the financial statements were released.

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In regards to the Take-Two fire, the statement reads: “a fire had damaged the Manhattan based offices of 2K Games, Global Star and Joytech North America. The Company is thankful to report that no employees were injured. However, due to the significant damage sustained to these leased offices, the Company has temporarily relocated all of these employees, consisting primarily of marketing and administrative personnel, and to a limited extent, product testing personnel. While Take-Two is still determining the overall financial and operational impact of the fire, the Company does not expect any significant effect on its business.”