Take-Two Surges In Second Quarter, Spent $5.3 Million Fighting EA

Grand Theft Auto IV's all-time record-breaking launch drove Take-Two to $98.2 million in profits during its fiscal second quarter, the company announced today. This represents exponential year-over-year growth for Take-Two, who saw a loss of $51.2 million during the same period of 2007.

The company more than doubled its net revenues for the quarter, reporting $539.8 million as compared with $205.4 million in the second quarter of 2007, even while the company spent $12.4 million on the stock-based compensation plan it recently approved for its Board.

Notably, results also reveal that Take-Two has spent a total of $5.3 million in legal fees over the last six months, the lion's share of which have been spent fending off Electronic Arts' acquisition bid.

As for BioShock, which now heads for both the PlayStation 3 and the movie theatres, Take-Two said it has shipped 2.2 million units to date.

Board chairman Strauss Zelnick emphasized the company's overall value:

"Take-Two's performance has exceeded expectations through the first half of fiscal 2008, clearly demonstrating the creative, operational and financial strength of our business," Zelnick said. "Our results reflected the extraordinary success of Grand Theft Auto IV, the value of our catalog of titles, and our ongoing initiatives to improve the efficiency of our operations.

"We look forward to continuing to enhance stockholder value by building on our broad portfolio of internally developed and owned interactive entertainment brands, leveraging the opportunities in the current industry cycle, and operating our business in an effective manner."

Zelnick's statement on "continuing to enhance stockholder value" seems to indicate he has no immediate plans to yield to EA's bid.

Ben Feder, Chief Executive Officer of Take-Two, added, "Based on the Company's stronger than expected results, we have increased our financial guidance for fiscal 2008 and are confident in our ability to continue to perform for the balance of the year. Furthermore, Take-Two is extremely well positioned in an industry that is experiencing explosive growth. We believe that our exceptional creative talent, diverse range of hit products, and the proven global demand for our titles will be the drivers of increasing value over time."