Videogame publisher Take-Two Interactive Software raised its full-year adjusted revenue forecast above analysts’ estimates on Wednesday, driven by the continued success of its popular Grand Theft Auto game.
The company now expects adjusted revenue at between $1.65 billion and $1.75 billion in the year ending March 31, compared with its previous forecast of $1.42 billion to $1.52 billion.
Analysts on average were expecting revenue of $1.54 billion, according to Thomson Reuters I/B/E/S.
In May, the company delayed the launch of its highly anticipated Western action-adventure Red Dead videogame to spring 2018 from fall 2017, which hurt its initial full-year forecast.
Take-Two said on Wednesday that both Grand Theft Auto V and Grand Theft Auto Online continued to outperform its expectations during the first quarter.
Grand Theft Auto V, which was launched in September 2013, was still No. 3 on market research firm NPD’s June list for top-selling games in the United States.
The company’s next releases are NBA 2K18 on Sept. 19, and WWE 2K18 in October.
Take-Two forecast current-quarter adjusted revenue of $465 million to $515 million, compared with the average analyst estimate of $441.7 million.
Sales from the high-margin digital business rose 55.9% to $268.2 million in the first quarter, as more players switch to downloading games rather than buying physical game discs.
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Take-Two said net revenue rose 34.2% to $418.2 million in the quarter ended June 30.
On an adjusted basis, the company reported net revenue of $348.3 million for the quarter, beating the average analyst estimate of $281.4 million.
Take-Two reported net income of $60.3 million, or 56 cents per share, compared with a loss of $38.6 million, or 46 cents per share, a year earlier.
