The gaming industry is a popular one, not just for the products it makes but also for the financial success that the big names are enjoying. Gaming is growing at a robust pace, and there are more avenues to access gaming than ever before. Whether it is a console, a personal computer, a tablet, or a mobile phone, popular games are extremely accessible today. The largest gaming company in the Western world is Activision Blizzard. The second-largest is Take-Two Interactive. Successful franchises like Grand Theft Auto and NBA2K have contributed significantly to the growth of Take-Two Interactive’s business. Take-Two also does significant publishing and marketing work. Therefore, it could be considered a communication stock. Take-Two has game studios where it develops its games. If you are looking to buy best communication services stocks, then Take-Two may be worth considering.
Take-Two Reports Strong Q12022 Earnings Numbers
Take-Two Interactive released its first-quarter 2022 earnings results on 2nd August 2021. The total revenue was slightly down from $831.3 million in Q12021 to $813.3 million. However, software development costs were significantly lower in the quarter as compared to Q12021. Therefore, operating income was significantly up from $82 million to $170 million year-on-year. Earnings per share on a diluted basis went up from $0.77 in Q12021 to $1.3. According to company CEO Strauss Zelnick, net bookings of $711 million during the quarter had exceeded the expectations of management. He also said that mobile gaming was a key growth area for the company. Mr. Zelnick also revealed that Grand Theft Auto V had crossed sales of 150 million units. Take-Two Interactive is one name to watch if you want to buy communication services stock.
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Take-Two Interactive expects its NBA2K franchise to continue being one of the long-term drivers of growth. Grand Theft Online is also a key contributor to the business. About 73% of console games are now being delivered digitally by the company. Such delivery is more efficient and can be scaled up rapidly.