Take-Two Interactive Software Inc. (NASDAQ:TTWO) Q3 2015 Earnings Conference Call - Final Transcript

Feb 03, 2015 • 04:30 pm ET


Take-Two Interactive Software Inc. (NASDAQ:TTWO) Q3 2015 Earnings Conference Call - Final Transcript


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Greetings, and welcome to the Take-Two Interactive Software Third Quarter Fiscal Year 2015 Earnings Call. At this time, all participants are in a listen-only mode. A brief question-and-answer session will follow the formal presentation. (Operator Instructions) As a reminder, this conference is being recorded.

It's now my pleasure to introduce your host, Hank Diamond, Senior Vice President of Investor Relations and Corporate Communications for Take-Two Interactive. Thank you, Mr. Diamond. You may begin.

Hank Diamond

Good afternoon. Welcome and thank you for joining Take-Two's conference call to discuss its results for the third quarter of fiscal year 2015 ended December 31, 2014. Today's call will be led by Strauss Zelnick, Take-Two's Chairman and Chief Executive Officer; Karl Slatoff, our President; and Lainie Goldstein, our Chief Financial Officer. We will be available to answer your questions during the Q&A session following our prepared remarks.

(Forward-Looking Cautionary Statements)

And now, I'll turn the call over to Strauss.

Strauss Zelnick

Thanks, Hank. Good afternoon and thank you for joining us today. I am pleased to report that Take-Two built on its positive momentum in the third quarter delivering exceptional results that exceeded non-GAAP expectations for the tenth period in a row. As a result of our strong earnings at quarter's end we had nearly $1 billion in cash and short-term investments. This outstanding performance was driven by one of the most diverse holiday lineups in the company's history led by Grand Theft Auto V for PlayStation 4 and Xbox One, NBA 2K15, WWE 2K15, Borderlands: The Pre-Sequel and Sid Meier's Civilization: Beyond Earth.

The stellar debut of Grand Theft Auto V on next-gen consoles illustrates why this series

Strauss Zelnick

is our industries most iconic brand. The title is the highest rated game to-date on both PlayStation 4 and Xbox One with the near perfect 97 Metacritics score and is widely considered to be one of the greatest interactive entertainment experiences ever created.

Grand Theft Auto V already has sold in nearly 10 million units on PlayStation 4 and Xbox One, bringing total sell in of the title to more than 45 million units across all consoles. And we continue to see strong demand for Grand Theft Auto V in the current quarter. NBA 2K15 enriched our franchises' legacy as the number one basketball simulation that sets new benchmark for realism with each annual release. The title was the highest rated sport game of 2014 based on average Metacritic score across consoles and PC, and already has sold in approximately 5.5 million units to-date, continuing the franchises' trend of year-over-year growth.

With the NBA season approaching its midpoint, demand for NBA 2K15 remains high, reflecting the games position as the perennial favorite among sports fans. The WWE 2K franchise has quickly proven to be highly successful addition to our annual offerings. This year's launch of WWE 2K15 outperformed our forecast with sell in to-date up more than 40% compared to last year's release. We believe the substantial opportunity remains to grow our wrestling series meaningfully overtime.

Finally, the launch of