Take-Two Interactive Software makes a ton of money


Take-Two Interactive Software (NASDAQ: TTWO) reported recent financial results for the quarter that ended September 30, a few days after Grand Theft Auto V was released and things are looking even better for the next fiscal year.

Sales were $148,824,000 or a few more millions than the quarter that ended on June 30 with $142,667,000 finally reversing the extremely negative trend that has been a concern for many shareholders since December 31,2012 when sales were $415,773,000

Nobody likes the business model where you sell a lot of products on Thanksgiving but very few of them for the rest of the year. We are finally moving in the right direction: Up.

The losses were $124,120,000 or almost twice the already big losses of $61,914,000 reported on June 30. Keep in mind, the company invested over $150,000,000 in marketing trying to sell Grand Theft Auto V and this strategy has without a doubt worked extremely well.

In fact, Grand Theft Auto V broke seven Guinness records recently including fastest entertainment property to generate $1 billion. Whatever they are doing, it’s working. If that means taking most of the cash in the bank account and use it to buy a lot of banners all over the Internet and report losses of over $100 million in that quarter so be it.

You need to sell at least $1.4 billion to become one of the largest Software & Programming companies in the world, a very exclusive list with names like Microsoft (NASDAQ: MSFT), Adobe (NASDAQ: ADBE) and Symantec. (NASDAQ: SYMC) According to Strauus Zelnick, the company will sell at least $2.2 billion in 2014 which is more than the current annual sales of Sage Group (London: SGE) or CheckPoint Software (NASDAQ: CHKP)

If they manage to turn a profit of at least $220 million they will attract many institutional investors that traditionally only invest in software companies selling software to Fortune 500 companies instead of consumers.

Every company in this category has a market value of at least $6.1 billion or more than four times the current market value of Take-Two Interactive Software.

You can join our crew here.

If you did not buy Microsoft back in 1998 at $10, now is your chance to buy Take-Two Interactive Software at $17.


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