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Take-Two Interactive Software Inc TTWO

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Take-Two Rides Its Core Franchises to Strong Fiscal Q3; Stay-At-Home Orders Boost Digital Engagement

Neil Macker, CFA Senior Equity Analyst

Analyst Note

| Neil Macker, CFA |

Take-Two posted yet another strong quarter as fiscal 2021 third quarter revenue and EBITDA handily beat FactSet consensus expectations. The firm’s core titles remain key beneficiaries of the gamers staying at home due to the pandemic. The updated fiscal 2021 guidance now calls from net bookings to be up from 13% to 14% year over year despite the company not releasing any new major, non-annualized titles in fiscal 2021, further demonstrating the strength of the core franchises. We keep our narrow moat rating and raise our fair value estimate to $184 from $174 due to a stronger fiscal 2021 outlook and continued margin expansion from the higher-than-expected digital uptake.

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Company Profile

Business Description

Found in 1993, Take-Two consists of two wholly owned labels, Rockstar Games and 2K. The firm is one of the world's largest independent video game publishers on consoles, PCs, smartphones, and tablets. Take-Two's franchise portfolio is headlined by "Grand Theft Auto" (220 million units sold) and contains other well-known titles such as "NBA 2K," "Civilization," "Borderlands," "Bioshock," and "Xcom."

110 West 44th Street
New York, NY, 10036
T +1 646 536-2842
Sector Communication Services
Industry Electronic Gaming & Multimedia
Most Recent Earnings Dec 31, 2020
Fiscal Year End Mar 31, 2020
Stock Type Aggressive Growth
Employees 5,800