Take-Two Interactive Software Inc. (NASDAQ:TTWO) Q4 2019 Earnings Conference Call Transcript

May 13, 2019 • 04:30 pm ET

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Take-Two Interactive Software Inc. (NASDAQ:TTWO) Q4 2019 Earnings Conference Call Transcript

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Presentation
Executive
Lainie Goldstein

last year. We expect to generate more than $450 million in adjusted operating cash flow and we plan to deploy approximately $90 million for capital expenditures. This increase is primarily due to spending on new studio and office build outs, network security and IT.

We expect GAAP net revenue to range from $2.7 billion to $2.8 billion and cost of goods sold to range from $1.24 billion to $1.29 billion. Total operating expenses are expected to range from $1.06 billion to $1.08 billion. At the midpoint, this represents a 14% increase over the prior year, driven primarily by higher marketing expense and R&D costs.

And we expect GAAP net income to range from $389 million to $418 million or $3.39 to $3.65 per share.

In closing, fiscal 2019 was an incredible year for Take-Two. Our ability to deliver consistently the highest quality entertainment experiences, that drive mass consumer engagement was reflected in our achievement of a record operating results.

We have the strongest development pipeline in our history, including sequels from our biggest franchises along with exciting new IP. In addition, we are actively investing in emerging opportunities such as Private Division, mobile games, eSports and geographic expansion, that have the potential to be enormous drivers of growth.

We are extremely well-positioned to generate significant growth and margin expansion over the long-term.

Thank you. I'll now turn the call back to Strauss.

Executive
Strauss Zelnick

Thanks, Lainie, and Karl. On behalf of our entire management team, I'd like to thank our colleagues for their hard work and for delivering an outstanding year. To our shareholders, I want to express our appreciation for your continued support. We'll now take your questions. Operator?