Earnings: Legal Fees Send Take-Two's Losses Higher

imageLooks like that battle to fend off EA had far-reaching costs for Take-Two (NSDQ: TTWO). The video game publisher posted a $50.4 million ($0.66 per share) net loss for its fiscal Q1, more than a third higher than its $38 million ($0.52 per share) loss last year, and up dramatically from its $15 million loss the previous quarter. The company attributed the ballooning losses to “higher marketing, legal, and research and development expenses” — noting that the legal fees could continue to mount — even though getting all of its legal troubles wrapped up was a priority.

Restructuring and legal costs: There’s a laundry list of legal issues related to the EA deal, including an FTC subpoena Take-Two tried to fight last June, and the company has already paid out more than $11 million to strategic advisors. Take-Two also said it’s still facing repercussions from its stock back-dating charges in 2007, including payouts of overturned board members.

Revenues were up: Take-Two’s Q1 revenues came in at $256.8 million, up 6.8 percent from $240.4 million last year. The company said sales of GTA IV, Carnival Games, NBA 2K9 and Midnight Club: Los Angeles fueled the growth; the Street was actually expecting revenue to contract, per MarketWatch. But the company’s guidance for the coming quarter was much lower than analyst expectations: Take-Two projected revenues of $200-$220 million, with a $0.10-$0.20 per share loss; analysts expected more than $260 worth of revenue and a gain of $0.03 per share. Release.

loading

Comments have been disabled for this post