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 Take-Two Interactive Software, Inc. Reports Stronger-Than-Expected Results for Fiscal Year 2016
   Wednesday, May 18, 2016 4:05:01 PM ET

--Non-GAAP Net Revenue was $1.561 Billion

--GAAP Net Loss Narrowed to $0.10 Per Diluted Share

--Non-GAAP Net Income Was $1.96 Per Diluted Share

Take-Two Interactive Software, Inc. (TTWO ) today reported stronger-than-expected financial results for its fourth quarter and fiscal year 2016, ended March 31, 2016, and provided its initial financial outlook for its first quarter and fiscal year 2017.

Fiscal Fourth Quarter 2016

GAAP Financial Results

For fiscal fourth quarter 2016, GAAP net revenue grew to $377.2 million, as compared to $300.1 million for fiscal fourth quarter 2015. GAAP net income increased to $46.4 million, or $0.48 per diluted share, as compared to GAAP net loss of $242.8 million, or $2.99 per diluted share, for the year-ago period. GAAP net income for fiscal fourth quarter 2016 reflects $14.2 million in tax benefits related to video game development costs. GAAP net revenue from digitally-delivered content grew 35% year-over-year to $194.8 million.



During fiscal fourth quarter 2016, the Company’s cash and short-term investments balance increased to $1.270 billion as of March 31, 2016, up from $1.215 billion as of December 31, 2015.

Non-GAAP Financial Results

For fiscal fourth quarter 2016, Non-GAAP net revenue was $342.5 million, as compared to $427.7 million for fiscal fourth quarter 2015, which had benefited from the launch of Evolve(TM) and ongoing sales from the Company’s more extensive holiday 2014 release slate. Non-GAAP net income was $51.7 million, or $0.46 per diluted share, as compared to $54.3 million, or $0.49 per diluted share, for the year-ago period. Non-GAAP net income for fiscal fourth quarter 2016 reflects $5.4 million in tax benefits related to video game development costs.

The largest contributors to Non-GAAP net revenue in fiscal fourth quarter 2016 were Grand Theft Auto V(R) and Grand Theft Auto Online, NBA(R) 2K16, XCOM(R) 2 and WWE(R) 2K16. Non-GAAP net revenue from digitally-delivered content grew 12% year-over-year to $226.6 million, led by Grand Theft Auto, NBA 2K, XCOM 2, and WWE 2K. Revenue from recurrent consumer spending (virtual currency, downloadable add-on content and online games) grew 15% year-over-year and accounted for 55% of Non-GAAP net revenue from digitally-delivered content, or 37% of total Non-GAAP net revenue. Catalog sales accounted for $211.3 million of Non-GAAP net revenue led by the Grand Theft Auto and Borderlands series.

Fiscal Year 2016

GAAP Financial Results

For fiscal year 2016, GAAP net revenue increased to $1.414 billion, as compared to $1.083 billion for fiscal year 2015. GAAP net loss narrowed to $8.3 million, or $0.10 per diluted share, as compared to $279.5 million, or $3.48 per diluted share, for the prior fiscal year. GAAP net loss for fiscal year 2016 reflects business reorganization charges of $71.3 million, partially offset by $37.8 million in tax benefits related to video game development costs. GAAP net revenue from digitally-delivered content grew 53% year-over-year to a record $697.7 million

Non-GAAP Financial Results

For fiscal year 2016, Non-GAAP net revenue was $1.561 billion, as compared to $1.669 billion for fiscal year 2015, which had benefited from a more extensive release slate. Non-GAAP net income was $218.3 million, or $1.96 per diluted share, as compared to $219.2 million, or $1.98 per diluted share, for the prior fiscal year. Non-GAAP net income for fiscal year 2016 reflects $37.6 million in tax benefits related to video game development costs.

The largest contributors to Non-GAAP net revenue in fiscal year 2016 were Grand Theft Auto V and Grand Theft Auto Online, NBA 2K16, WWE 2K16, NBA 2K15, and XCOM 2. Non-GAAP net revenue from digitally-delivered content grew 36% year-over-year to a record $835.2 million, led by Grand Theft Auto, NBA 2K, Borderlands, XCOM 2 and WWE 2K. Revenue from recurrent consumer spending grew 33% year-over-year and accounted for 48% of Non-GAAP net revenue from digitally-delivered content, or 26% of total Non-GAAP net revenue.

Management Comments

"Fiscal 2016 marked the third consecutive year of stronger-than-expected Non-GAAP revenues and profits for Take-Two," said Strauss Zelnick, Chairman and CEO of Take-Two. "Our results were driven by the continued extraordinary performance of Grand Theft Auto V, ongoing momentum in our NBA 2K and WWE 2K series, the successful launch of XCOM 2, and our highest-ever revenue from recurrent consumer spending.

"Fiscal 2017 is poised to be another strong year for Take-Two, with anticipated Non-GAAP earnings in excess of $1.00 per share. Our diverse lineup includes the new intellectual property Battleborn, which we released earlier this month, and the eagerly anticipated upcoming launches of Mafia III, Sid Meier’s Civilization VI, NBA 2K17 and WWE 2K17. We plan to support these titles with innovative offerings designed to promote ongoing engagement and drive recurrent consumer spending. Looking ahead, we expect to grow Non-GAAP revenues and earnings in fiscal 2018, based on our robust development plan that extends well beyond the current fiscal year. Rockstar Games is of course hard at work on some exciting future projects that will be revealed soon."

Business and Product Highlights

Since January 1, 2016:

Rockstar Games:

-- Released new free content updates for Grand Theft Auto Online, including: -- A May 3, 2016 update featuring the new ’In & Out’ Adversary Mode and more.

-- GTA Online Lowriders: Custom Classics, featuring two new upgradeable muscle cars plus an additional upgrade style for an existing lowrider, new weapons, clothing and tattoos, as well as the "Sumo" Adversary Mode.

-- Grand Theft Auto Online: Be My Valentine, featuring an updated Albany Roosevelt classic car, new clothes and accessories, the couples-based "Till Death Do Us Part" Adversary Mode, along with the return of all content from the previous Valentine’s Day update.

-- A January 28, 2016 update featuring the new "Drop Zone" Adversary Mode, two new high-end vehicles and additional improvements to Grand Theft Auto Online.

-- Released Grand Theft Auto: Liberty City Stories for Android devices. Originally designed with mobile gameplay in mind, Grand Theft Auto: Liberty City Stories is also available for select iOS devices.

-- Rockstar Games also is hard at work on some exciting future projects that will be revealed soon.

2K:

-- Entered into a new multi-year partnership agreement with WWE granting 2K the exclusive worldwide rights to develop and publish WWE video game properties across all major platforms and distribution channels.

-- Launched Battleborn(TM), a groundbreaking new title from the creators of Borderlands at Gearbox Software, on PlayStation 4, Xbox One and PC. Battleborn is being supported with a rich array of both free and paid additional content, including a Season Pass, as well as the free-to-play Battleborn Tap companion App, which mirrors the game’s progression and loot system.

-- Launched the physical release of Tales from the Borderlands, the critically acclaimed and award-winning episodic adventure game from Telltale Games, on PlayStation 4, PlayStation 3, Xbox One, Xbox 360 and PC.

-- Released WWE 2K16 on Windows PC. Developed collaboratively by Yukes and Visual Concepts, WWE 2K16 is being supported with downloadable add-on content, including a Season Pass, and is also available on Xbox One, Xbox 360, PlayStation 4 and PlayStation 3.

-- Launched XCOM 2, the sequel to the Game of the Year award-winning strategy title XCOM: Enemy Unknown, for PC. Developed by Firaxis Games, XCOM 2 received outstanding review scores, with IGN awarding it a 9.3 out of 10 and saying, "XCOM 2 is an amazing game", along with PC Gamer writing, "We’ll play this forever," and awarding it a 94% out of 100%. Game Informer Magazine also wrote that XCOM 2 is "one of the deepest and most rewarding strategy games on the market" and awarded it a 9.5 out of 10. XCOM 2 is being supported with an array of downloadable add-on content, including the now available Anarchy’s Children and Alien Hunters packs, adding even more customization options and replayability.

-- Announced that Sid Meier’s Civilization VI, the next entry in the award-winning turn-based strategy franchise that has sold-in over 34 million units, is currently in development for PC at Firaxis Games and planned for launch on October 21, 2016. Sid Meier’s Civilization VI will offer players new ways to engage with their world, advance their culture, expand their empire across the map, and play amongst history’s greatest leaders to build a civilization that will stand the test of time.

-- Announced that Mafia(R) III, the next installment in 2K’s successful organized crime series that is currently in development at Hangar 13, is planned for launch on October 7, 2016 for Xbox One, PlayStation 4 and PC. Collector’s, deluxe and standard editions of Mafia III will be available for all three platforms, and those who pre-order any edition of Mafia III will receive the Family Kick-Back, which includes three exclusive vehicles and weapons available to players at launch.

Financial Outlook for Fiscal 2017

Take-Two is providing its initial financial outlook for its fiscal first quarter ending June 30, 2016 and fiscal year ending March 31, 2017 as follows:

                                                                             First Quarter                 Fiscal Year
                                                                                                                 Ending 6/30/2016             Ending 3/31/2017
                                                                                                             ----------------------- ----------------------- -----------------------
                                                                                                                                                              
                                                                Non-GAAP net revenue                           $225 to $260 Million                            $1.5 to $1.6 Billion
                                                                                                                                                              
                                    Non-GAAP net income (loss) per diluted share (1)                            ($0.40) to ($0.30)                                $1.00 to $1.25
                                                                                                                                                              
                                             GAAP to Non-GAAP Reconciling Items (2):
                        ------------------------------------------------------------
                                                                                                                                                              
                        Net effect from deferral in net revenues and related cost of                                  ($1.39)                                         ($3.64)
                                                                          goods sold
                                                                                                                                                              
                                                Stock-based compensation expense (3)                                   $0.14                                           $0.43
                                                                                                                                                              
                              Non-cash amortization of discount on convertible notes                                   $0.05                                           $0.14
                                                                                                                                                              
                                                                Non-cash tax expense                                   $0.01                                           $0.00
                                                                                                                                                              
1)                      For the fiscal year ending March 31, 2017, our Non-GAAP net income
                        per diluted share outlook is calculated using the "if-converted"
                        method as a result of the issuances of our 1.75% Convertible Notes
                        in November 2011 and 1.00% Convertible Notes in June 2013, and
                        Non-GAAP diluted net income for the fiscal year is adjusted by
                        adding-back $4.4 million related to coupon interest and debt
                        issuance costs, net of tax. Shares used to calculate our Non-GAAP
                        net income per diluted share outlook are as follows:
                                                                                                                                                              
                                                                                                                   86.5 Million                                    92.5 Million
                            Weighted average basic shares
                                                                                                                         -                                          2.5 Million
                              Add: Weighted average participating shares
                                                                                                                         -                                         22.0 Million
                              Add: Potential Dilution from convertible notes
                                                                                                                   86.5 Million                                    117.0 Million
                            Total weighted average diluted shares
                                                                                                                                                              
2)                      All GAAP to Non-GAAP reconciling items are net of tax and per
                        share.
3)                      The Company’s stock-based compensation expense for the periods
                        above includes the cost of approximately 0.9 million restricted
                        stock units previously granted to ZelnickMedia that are subject to
                        variable accounting. Actual expense to be recorded in connection
                        with these shares is dependent upon several factors, including
                        future changes in Take-Two’s stock price.
                                                                                                                                                              

Key assumptions and dependencies underlying the Company’s financial outlook include: the timely delivery of the titles included in this financial outlook; continued consumer acceptance of the Xbox One and PlayStation 4; the ability to develop and publish products that capture market share for these new-generation systems while continuing to leverage opportunities on the Xbox 360, PlayStation 3 and PC; and stable foreign exchange rates. See also "Cautionary Note Regarding Forward Looking Statements" below.

Product Releases

The following titles were released since January 1, 2016:

Label              Title                                                           Platforms                            Release Date
-------------- -------------------- -------------------- ----------------------------------------------------------- -------------------- -------------------- -------------------------------- -------------------- -------------------- --------------------
2K                 WWE 2K16: Future Stars Pack (DLC)                               Xbox 360, Xbox One, PS3, PS4         January 26, 2016
2K                                                       XCOM 2                                                                                                PC, Mac, Linux                                                             February 5, 2016
Rockstar Games                                           Grand Theft Auto: Liberty City Stories                                                                Android                                                                    February 11, 2016
2K                                                       WWE 2K16: 2015 Hall of Fame Showcase (DLC)                                                            Xbox 360, Xbox One, PS3, PS4                                               February 23, 2016
2K                                                       WWE 2K16                                                                                              PC                                                                         March 11, 2016
2K                                                       XCOM 2: Anarchy’s Children (DLC)                                           PC, Mac, Linux                                                             March 17, 2016
2K                                                       XCOM: Enemy Unknown Plus                                                                              PlayStation Vita                                                           March 22, 2016
2K                                                       Civilization Revolution 2 Plus                                                                        PlayStation Vita                                                           March 29, 2016
2K                                                       Tales from the Borderlands                                                                            Xbox 360, Xbox One, PS3, PS4, PC                                           April 26, 2016
2K                                                       Battleborn                                                                                            Xbox One, PS4, PC                                                          May 3, 2016
2K                                                       Battleborn Tap                                                                                        iOS, Android                                                               May 3, 2016
2K                                                       XCOM 2: Alien Hunters (DLC)                                                                           PC                                                                         May 12, 2016
                                                                                                                                                                                                                                           
Take-Two’s lineup of future titles announced to date includes:
                                                                                                                                                                                                                                           
Label              Title                                                           Platforms                            Release Date
-------------- -------------------- -------------------- ----------------------------------------------------------- -------------------- -------------------- -------------------------------- -------------------- -------------------- --------------------
2K                                                       NBA 2K17                                                                                              Xbox 360, Xbox One, PS3, PS4, PC                                           September 2016
2K                                                       Mafia III                                                                                             Xbox One, PS4, PC                                                          October 7, 2016
2K                                                       Sid Meier’s Civilization VI                                                PC                                                                         October 21, 2016
2K                                                       WWE 2K17                                                                                              TBA                                                                        October 2016
                                                                                                                                                                                                                                           

Conference Call

Take-Two will host a conference call today at 4:30 p.m. Eastern Time to review these results and discuss other topics. The call can be accessed by dialing (877) 407-0984 or (201) 689-8577. A live listen-only webcast of the call will be available by visiting http://ir.take2games.com and a replay will be available following the call at the same location.

Non-GAAP Financial Measures

In addition to reporting financial results in accordance with U.S. generally accepted accounting principles (GAAP), the Company uses Non-GAAP measures of financial performance. The Company believes that these Non-GAAP financial measures, when taken into consideration with the corresponding GAAP financial measures, are important in gaining an understanding of the Company’s ongoing business. These Non-GAAP financial measures also provide for comparative results from period to period. Therefore, the Company believes it is appropriate to exclude the following Non-GAAP items, net of applicable taxes, as discussed below:

-- Net effect from deferral in net revenues and related cost of goods sold - the Company defers revenue and related costs from the sale of certain titles when our post-contract customer support obligations are determined to be significant and we cannot establish fair value for that deliverable. The Company also defers revenue from the sale of virtual currency. These amounts are deferred over the estimated remaining life of the game to which they pertain. As there is no impact to the Company’s operating cash flow, management excludes the impact of deferred net revenue and related costs from its Non-GAAP financial measures when evaluating the Company’s operating performance, when planning, forecasting and analyzing future periods, and when assessing the performance of its management team. In addition, we believe that these Non-GAAP financial measures provide a more timely indication of trends in our business, provide comparability with the way our business is measured by analysts, and provide consistency with industry data sources.

-- Stock-based compensation - the Company does not consider stock-based compensation charges when evaluating business performance and management does not contemplate stock-based compensation expense in its short- and long-term operating plans. As a result, the Company has excluded such expenses from its Non-GAAP financial measures.

-- Business reorganization - although the Company has incurred business reorganization expenses in the past, each charge relates to a discrete event based on a unique set of business objectives. Management does not believe these charges reflect the Company’s primary business, ongoing operating results or future outlook. As such, the Company believes it is appropriate to exclude these expenses and related charges from its Non- GAAP financial measures.

-- Non-cash amortization of discount on convertible notes - the Company records non-cash amortization of discount on convertible notes as interest expense in addition to the interest expense already recorded for coupon payments. The Company excludes the non-cash portion of the interest expense from its Non-GAAP financial measures because these amounts are unrelated to its ongoing business operations.

-- Non-cash tax expense for the impact of deferred tax liabilities associated with tax deductible amortization of goodwill - due to the nature of the adjustment as well as the expectation that it will not have any cash impact in the foreseeable future, the Company believes it is appropriate to exclude this expense from its Non-GAAP financial measures.

-- Gain on long-term investment, net - from time to time, the Company makes strategic investments. The Company excludes the impact of any gains and losses on such investments from its Non-GAAP financial measures.

These Non-GAAP financial measures are not intended to be considered in isolation from, as a substitute for, or superior to, GAAP results. These Non-GAAP financial measures may be different from similarly titled measures used by other companies. In the future, Take-Two may also consider whether other items should also be excluded in calculating the Non-GAAP financial measures used by the Company. Management believes that the presentation of these Non-GAAP financial measures provides investors with additional useful information to measure Take-Two’s financial and operating performance. In particular, the measures facilitate comparison of operating performance between periods and help investors to better understand the operating results of Take-Two by excluding certain items that may not be indicative of the Company’s core business, operating results or future outlook. Internally, management may use these Non-GAAP financial measures in assessing the company’s operating results and in planning and forecasting. In addition to the Non-GAAP financial measures provided in this press release, see the Company’s website for additional information regarding our non-GAAP results.

Final Results

The financial results discussed herein are presented on a preliminary basis; final data will be included in Take-Two’s Annual Report on Form 10-K for the fiscal year ended March 31, 2016.

About Take-Two Interactive Software

Headquartered in New York City, Take-Two Interactive Software, Inc. is a leading developer, publisher and marketer of interactive entertainment for consumers around the globe. The Company develops and publishes products through its two wholly-owned labels Rockstar Games and 2K. Our products are designed for console systems and personal computers, including smartphones and tablets, and are delivered through physical retail, digital download, online platforms and cloud streaming services. The Company’s common stock is publicly traded on NASDAQ under the symbol TTWO. For more corporate and product information please visit our website at http://www.take2games.com .

All trademarks and copyrights contained herein are the property of their respective holders.

Cautionary Note Regarding Forward-Looking Statements

The statements contained herein which are not historical facts are considered forward-looking statements under federal securities laws and may be identified by words such as "anticipates," "believes," "estimates," "expects," "intends," "plans," "potential," "predicts," "projects," "seeks," "will," or words of similar meaning and include, but are not limited to, statements regarding the outlook for the Company’s future business and financial performance. Such forward-looking statements are based on the current beliefs of our management as well as assumptions made by and information currently available to them, which are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict. Actual outcomes and results may vary materially from these forward-looking statements based on a variety of risks and uncertainties including: our dependence on key management and product development personnel, our dependence on our Grand Theft Auto products and our ability to develop other hit titles, the timely release and significant market acceptance of our games, the ability to maintain acceptable pricing levels on our games, and risks associated with international operations. Other important factors and information are contained in the Company’s most recent Annual Report on Form 10-K, including the risks summarized in the section entitled "Risk Factors," the Company’s most recent Quarterly Report on Form 10-Q, and the Company’s other periodic filings with the SEC, which can be accessed at www.take2games.com. All forward-looking statements are qualified by these cautionary statements and apply only as of the date they are made. The Company undertakes no obligation to update any forward-looking statement, whether as a result of new information, future events or otherwise.

 
                                                                                                                                                    TAKE-TWO INTERACTIVE SOFTWARE, INC. and SUBSIDIARIES
                                                                                                                                                      CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)
                                                                                                                                                          (in thousands, except per share amounts)
                                                                                                                                                                                                                           
                                                                                                                               Three months ended March 31,                                                                                                                    Twelve months ended March 31,
                                                                                --------------------------------------------------------------------------------------------------------------------------                     -----------------------------------------------------------------------------------------------------------------------------
                                                                                    2016                             2015                               2016                               2015    
                                                                                -------------------- ------- --------------------                      -------------------- -------- --------------------                      -------------------- --------- --------------------                      -------------------- --------- --------------------
                                                                                                                                                                                                                                                                                                         
                                                                                                                                                                                                                                                                                                         
Net revenue                                                                                        $ 377,206                                           $  300,089                                           $ 1,413,698                                           $ 1,082,938  
----------------------------------------------------------                      -------------------- ------- --------------------                      -------------------- -------- --------------------                      -------------------- --------- --------------------                      -------------------- --------- --------------------
                                                                                                                                                                                                                                                                                                         
Cost of goods sold:
   Internal royalties                                                                                 72,552                                                                 271,907                                                                  328,610                                                                  306,717
   Software development costs and royalties                                                           71,352                                                                  86,752                                                                  223,512                                                                  231,615
   Product costs                                                                                      46,554                                                                  39,389                                                                  200,206                                                                  178,810
   Licenses                                                                        18,999                            12,634                             61,545                             77,725  
----------------------------------------------------------                      -------------------- ------- --------------------                      -------------------- -------- --------------------                      -------------------- --------- --------------------                      -------------------- --------- --------------------
Total cost of goods sold                                                          209,457                           410,682                            813,873                            794,867  
----------------------------------------------------------                      -------------------- ------- --------------------                      -------------------- -------- --------------------                      -------------------- --------- --------------------                      -------------------- --------- --------------------
                                                                                                                                                                                                                                                                                                         
Gross profit (loss)                                                                                  167,749                                                                (110,593 )                                                                599,825                                                                  288,071
                                                                                                                                                                                                                                                                                                         
   Selling and marketing                                                                              38,020                                                                  52,467                                                                  198,309                                                                  235,341
   General and administrative                                                                         44,395                                                                  38,202                                                                  192,452                                                                  175,093
   Research and development                                                                           33,308                                                                  35,157                                                                  119,807                                                                  115,043
   Business reorganization                                                                               113                                                                       -                                                                   71,285                                                                        -
   Depreciation and amortization                                                    7,338                             5,934                             28,800                             21,057  
----------------------------------------------------------                      -------------------- ------- --------------------                      -------------------- -------- --------------------                      -------------------- --------- --------------------                      -------------------- --------- --------------------
Total operating expenses                                                          123,174                           131,760                            610,653                            546,534  
----------------------------------------------------------                      -------------------- ------- --------------------                      -------------------- -------- --------------------                      -------------------- --------- --------------------                      -------------------- --------- --------------------
Income (loss) from operations                                                                         44,575                                                                (242,353 )                                                                (10,828 )                                                               (258,463 )
Interest and other, net                                                                               (6,257 )                                                                (7,204 )                                                                (30,205 )                                                                (31,893 )
Gain on long-term investments, net                                                  2,683                                 -                              2,683                             17,476  
----------------------------------------------------------                      -------------------- ------- --------------------                      -------------------- -------- --------------------                      -------------------- --------- --------------------                      -------------------- --------- --------------------
Income (loss) from operations before income taxes                                                     41,001                                                                (249,557 )                                                                (38,350 )                                                               (272,880 )
(Benefit from) provision for income taxes                                          (5,398 )                                             (6,766 )                                             (30,048 )                                               6,590  
----------------------------------------------------------                      -------------------- ------- --------------------                      -------------------- -------- --------------------                      -------------------- --------- --------------------                      -------------------- --------- --------------------
Net income (loss)                                                                                  $  46,399                                           $ (242,791 )                                                            $    (8,302 )                                                            $  (279,470 )
==========================================================                      ==================== ======= ====================                      ==================== ======== ====================                      ==================== ========= ====================                      ==================== ========= ====================
                                                                                                                                                                                                                                                                                                         
Earnings (loss) per share:
Basic earnings (loss) per share                                                                    $    0.54                                           $    (2.99 )                                                            $     (0.10 )                                                            $     (3.48 )
                                                                                ==================== ======= ====================                      ==================== ======== ====================                      ==================== ========= ====================                      ==================== ========= ====================
                                                                                                                                                                                                                                                                                                         
Diluted earnings (loss) per share                                                                  $    0.48                                           $    (2.99 )                                               (0.10 )                                                            $     (3.48 )
                                                                                ==================== ======= ====================                      ==================== ======== ====================                      -------------------- --------- --------------------                      ==================== ========= ====================
                                                                                                                                                                                                                                                                                                         
Weighted average shares outstanding:                                                                                                                                                                                                            
----------------------------------------------------------                      --------------------------------------------------                     ---------------------------------------------------                     ----------------------------------------------------                     ----------------------------------------------------
Basic                                                                                                 86,375                                                                  81,085                                                                   83,417                                                                   80,367
Diluted                                                                           114,496                            81,085                             83,417                             80,367  
==========================================================                      ==================== ======= ====================                      ==================== ======== ====================                      ==================== ========= ====================                      ==================== ========= ====================
                                                                                                                                                                                                                                                                                                         
Computation of Basic EPS:
   Net income (loss)                                                                               $  46,399                                                              $ (242,791 )                                                            $    (8,302 )                                                            $  (279,470 )
   Less: net income allocated to participating securities                          (1,447 )                                                  -                                  -                                  -  
                                                                                -------------------- ------- --------------------                      -------------------- -------- --------------------                      -------------------- --------- --------------------                      -------------------- --------- --------------------
        Net income (loss) for basic EPS calculation                                                $  44,952                                           $ (242,791 )                                                            $    (8,302 )                                                            $  (279,470 )
                                                                                ==================== ======= ====================                      ==================== ======== ====================                      ==================== ========= ====================                      ==================== ========= ====================
                                                                                                                                                                                                                                                                                                         
   Weighted average shares outstanding - basic                                                        86,375                                                                  81,085                                                              $    83,417                                                                   80,367
   Less: weighted average participating shares outstanding                         (2,694 )                                                  -                                  -                                  -  
                                                                                -------------------- ------- --------------------                      -------------------- -------- --------------------                      -------------------- --------- --------------------                      -------------------- --------- --------------------
      Weighted average common shares outstanding - basic                           83,681                            81,085                                           $    83,417                             80,367  
                                                                                ==================== ======= ====================                      ==================== ======== ====================                      ==================== ========= ====================                      ==================== ========= ====================
                                                                                                                                                                                                                                                
                                                                                --------------------------------------------------                     ---------------------------------------------------                     ----------------------------------------------------                     ----------------------------------------------------
   Basic EPS                                                                                       $    0.54                                           $    (2.99 )                                                            $     (0.10 )                                                            $     (3.48 )
                                                                                ==================== ======= ====================                      ==================== ======== ====================                      ==================== ========= ====================                      ==================== ========= ====================
                                                                                                                                                                                                                                                                                                         
Computation of Diluted EPS:
   Net income (loss)                                                                               $  46,399                                                              $ (242,791 )                                                            $    (8,302 )                                                            $  (279,470 )
   Less: net income allocated to participating securities                                             (1,092 )                                                                     -                                                                        -                                                                        -
   Add: interest expense, net of tax, on Convertible Notes                          8,172                                 -                                  -                                  -  
                                                                                -------------------- ------- --------------------                      -------------------- -------- --------------------                      -------------------- --------- --------------------                      -------------------- --------- --------------------
        Net income (loss) for diluted EPS calculation                                              $  53,479                                           $ (242,791 )                                                            $    (8,302 )                                                            $  (279,470 )
                                                                                ==================== ======= ====================                      ==================== ======== ====================                      ==================== ========= ====================                      ==================== ========= ====================
                                                                                                                                                                                                                                                                                                         
   Weighted average common shares outstanding - basic                                                 83,681                                                                  81,085                                                                   83,417                                                                   80,367
   Add: dilutive effect of common stock equivalents                                28,121                                 -                                  -                                  -  
                                                                                -------------------- ------- --------------------                      -------------------- -------- --------------------                      -------------------- --------- --------------------                      -------------------- --------- --------------------
      Weighted average common shares outstanding - diluted                        111,802                            81,085                             83,417                             80,367  
                                                                                ==================== ======= ====================                      ==================== ======== ====================                      ==================== ========= ====================                      ==================== ========= ====================
                                                                                                                                                                                                                                                
                                                                                --------------------------------------------------                     ---------------------------------------------------                     ----------------------------------------------------                     ----------------------------------------------------
   Diluted EPS                                                                                     $    0.48                                           $    (2.99 )                                                            $     (0.10 )                                                            $     (3.48 )
                                                                                ==================== ======= ====================                      ==================== ======== ====================                      ==================== ========= ====================                      ==================== ========= ====================
                                                                                                                                                                                                                                                                                                                                        
 
                                                                                   TAKE-TWO INTERACTIVE SOFTWARE, INC. and SUBSIDIARIES
                                                                                                CONSOLIDATED BALANCE SHEETS
                                                                                         (in thousands, except per share amounts)
                                                                                                                               
                                                                                                                   March 31,                                                                March 31,
                                                                                                  2016                               2015    
                                                                                             -------------------- --------- --------------------                      -------------------- --------- --------------------
                                                                                                                                                                       
                                 ASSETS
Current assets:
  Cash and cash equivalents                                                                                     $   798,742                                                              $   911,120
  Short-term investments                                                                                            470,820                                                                  186,929
  Restricted cash                                                                                                   261,169                                                                  169,678
  Accounts receivable, net of allowances of $45,552 and $70,471 at
  March 31, 2016 and
   2015, respectively                                                                                               168,527                                                                  217,860
  Inventory                                                                                                          15,888                                                                   20,051
  Software development costs and licenses                                                                           178,387                                                                  163,385
  Deferred cost of goods sold                                                                                        98,474                                                                   56,779
  Prepaid expenses and other                                                                      53,269                             54,057  
-----------------------------------------------------------------------                      -------------------- --------- --------------------                      -------------------- --------- --------------------
      Total current assets                                                                     2,045,276                          1,779,859  
-----------------------------------------------------------------------                      -------------------- --------- --------------------                      -------------------- --------- --------------------
                                                                                                                                                                       
  Fixed assets, net                                                                                                  77,127                                                                   69,792
  Software development costs and licenses, net of current portion                                                   214,831                                                                  124,329
  Deferred cost of goods sold, net of current portion                                                                17,915                                                                   19,869
  Goodwill                                                                                                          217,080                                                                  217,288
  Other intangibles, net                                                                                              4,609                                                                    4,769
  Other assets                                                                                    13,439                             12,167  
-----------------------------------------------------------------------                      -------------------- --------- --------------------                      -------------------- --------- --------------------
      Total assets                                                                                              $ 2,590,277                                           $ 2,228,073  
=======================================================================                      ==================== ========= ====================                      ==================== ========= ====================
                                                                                                                                                                       
                  LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
  Accounts payable                                                                                              $    30,448                                                              $    38,789
  Accrued expenses and other current liabilities                                                                    607,479                                                                  444,738
  Deferred revenue                                                                               582,484                            482,733  
-----------------------------------------------------------------------                      -------------------- --------- --------------------                      -------------------- --------- --------------------
      Total current liabilities                                                                1,220,411                            966,260  
-----------------------------------------------------------------------                      -------------------- --------- --------------------                      -------------------- --------- --------------------
                                                                                                                                                                       
Long-term debt                                                                                                      497,935                                                                  473,030
Non-current deferred revenue                                                                                        216,319                                                                  164,618
Other long-term liabilities                                                                       74,227                             61,077  
-----------------------------------------------------------------------                      -------------------- --------- --------------------                      -------------------- --------- --------------------
      Total liabilities                                                                        2,008,892                          1,664,985  
-----------------------------------------------------------------------                      -------------------- --------- --------------------                      -------------------- --------- --------------------
Commitments and contingencies
                                                                                                                                                                       
Stockholders’ equity:
  Preferred stock, $.01 par value, 5,000 shares authorized                                                                -                                                                        -
  Common stock, $.01 par value, 200,000 shares authorized; 103,765 and
  104,594 shares
   issued and 86,573 and 88,356 outstanding at March 31, 2016 and 2015,                                               1,038                                                                    1,046
   respectively
  Additional paid-in capital                                                                                      1,088,628                                                                1,028,197
  Treasury stock, at cost; 17,192 and 16,238 common shares at March                                                (303,388 )                                                               (276,836 )
  31, 2016 and 2015, respectively
  Accumulated deficit                                                                                              (166,997 )                                                               (158,695 )
  Accumulated other comprehensive loss                                                           (37,896 )                                             (30,624 )
-----------------------------------------------------------------------                      -------------------- --------- --------------------                      -------------------- --------- --------------------
      Total stockholders’ equity                                                                 581,385                            563,088  
-----------------------------------------------------------------------                      -------------------- --------- --------------------                      -------------------- --------- --------------------
      Total liabilities and stockholders’ equity                                                                $ 2,590,277                                           $ 2,228,073  
=======================================================================                      ==================== ========= ====================                      ==================== ========= ====================
                                                                                                                                                                                                      
 
                                                                                 TAKE-TWO INTERACTIVE SOFTWARE, INC. and SUBSIDIARIES
                                                                                   CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)
                                                                                                    (in thousands)
                                                                                                                        Twelve months ended March 31,
                                                                                            ---------------------------------------------------------------------------------------------------------------------------
                                                                                                2016           2015    
                                                                                            -------------------- -------- --------------------                      -------------------- -------- --------------------
                                                                                                                                                                     
Operating activities:
   Net loss                                                                                                    $   (8,302 )                                                            $ (279,470 )
                                                                                                                                                                     
   Adjustments to reconcile net loss to net cash provided by operating
   activities:
      Amortization and impairment of software development costs and                                               134,472                                                                 133,453
      licenses
      Depreciation and amortization                                                                                28,800                                                                  21,057
      Amortization and impairment of intellectual property                                                            160                                                                     344
      Stock-based compensation                                                                                     69,996                                                                  65,246
      Deferred income taxes                                                                                          (270 )                                                                 2,279
      Amortization of discount on Convertible Notes                                                                23,457                                                                  22,026
      Amortization of debt issuance costs                                                                           1,567                                                                   1,663
      Gain on of long-term investments, net                                                                        (2,683 )                                                               (17,476 )
      Other, net                                                                                                    2,588                                                                   2,068
   Changes in assets and liabilities:
      Restricted cash                                                                                             (91,491 )                                                                24,161
      Accounts receivable                                                                                          49,348                                                                (164,717 )
      Inventory                                                                                                     3,809                                                                   9,729
      Software development costs and licenses                                                                    (219,217 )                                                              (188,772 )
      Prepaid expenses, other current and other non-current assets                                                (12,272 )                                                                 5,398
      Deferred revenue                                                                                            152,325                                                                 568,028
      Deferred cost of goods sold                                                                                 (41,144 )                                                               (70,788 )
      Accounts payable, accrued expenses and other liabilities                                 170,162                            78,585  
----------------------------------------------------------------------                      -------------------- -------- --------------------                      -------------------- -------- --------------------
Net cash provided by operating activities                                                      261,305                           212,814  
----------------------------------------------------------------------                      -------------------- -------- --------------------                      -------------------- -------- --------------------
                                                                                                                                                                     
Investing activities:
   Change in bank time deposits                                                                                  (182,383 )                                                               (87,500 )
   Purchase of fixed assets                                                                                       (37,280 )                                                               (49,501 )
   Sale and maturities of available for sale securities                                                            43,314                                                                       -
   Purchase of available for sale securities                                                                     (150,501 )                                                              (100,116 )
   Cash received from the sale of long-term investment                                                              2,683                                                                  21,976
   Purchase of long-term investment                                                                                     -                                                                  (5,000 )
   Other                                                                                          (349 )                                                  -  
----------------------------------------------------------------------                      -------------------- -------- --------------------                      -------------------- -------- --------------------
   Net cash used in investing activities                                                      (324,516 )                                           (220,141 )
----------------------------------------------------------------------                      -------------------- -------- --------------------                      -------------------- -------- --------------------
                                                                                                                                                                     
Financing activities:
   Excess tax benefit from stock-based compensation                                                                 1,421                                                                     928
   Tax payment related to net share settlements on restricted stock                                               (22,916 )                                                                     -
   awards
   Repurchase of common stock                                                                  (26,552 )                                                  -  
----------------------------------------------------------------------                      -------------------- -------- --------------------                      -------------------- -------- --------------------
   Net cash (used in) provided by financing activities                                         (48,047 )                                                928  
----------------------------------------------------------------------                      -------------------- -------- --------------------                      -------------------- -------- --------------------
                                                                                                                                                                     
   Effects of foreign exchange rates on cash and cash equivalents                               (1,120 )                                            (17,881 )
----------------------------------------------------------------------                      -------------------- -------- --------------------                      -------------------- -------- --------------------
                                                                                                                                                                     
   Net decrease in cash and cash equivalents                                                                     (112,378 )                                                               (24,280 )
   Cash and cash equivalents, beginning of year                                                911,120                           935,400  
----------------------------------------------------------------------                      -------------------- -------- --------------------                      -------------------- -------- --------------------
   Cash and cash equivalents, end of period                                                                    $  798,742                                           $  911,120  
======================================================================                      ==================== ======== ====================                      ==================== ======== ====================
                                                                                                                                                                                                   
                                                                                                                                                                                                                                      
TAKE-TWO INTERACTIVE SOFTWARE, INC. and SUBSIDIARIES
RECONCILIATION OF GAAP TO Non-GAAP MEASURES (Unaudited)                                                                                                                                                                                                                                                            
(in thousands, except per share amounts)
                                                                        
                                                                                                                                                                                                                                                                                                                                                                              
                                                                                                                                                                                                    Three months ended March 31,                                                                                                                    Twelve months ended March 31,
                                                                                                                                                     --------------------------------------------------------------------------------------------------------------------------                     -----------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                         2016                             2015                               2016                               2015    
                                                                                                                                                     -------------------- ------- --------------------                      -------------------- -------- --------------------                      -------------------- --------- --------------------                      -------------------- --------- --------------------
Net Revenues
                     GAAP Net Revenues                                                                                                                                  $ 377,206                                                              $  300,089                                                              $ 1,413,698                                                              $ 1,082,938
                                                             Net effect from deferral in net revenues                                                  (34,694 )                                            127,647                            146,928                            585,827  
                                                                                                                                                     -------------------- ------- --------------------                      -------------------- -------- --------------------                      -------------------- --------- --------------------                      -------------------- --------- --------------------
                     Non-GAAP Net Revenues                                                                                                                              $ 342,512                                           $  427,736                          1,560,626                                           $ 1,668,765  
                                                                                                                                                     -------------------- ------- --------------------                      -------------------- -------- --------------------                      -------------------- --------- --------------------                      -------------------- --------- --------------------
                                                                                                                                                                                                                                                                                                                                                                              
Digital Online Revenues (included in Net Revenues above)
                     GAAP Digital Online Revenues                                                                                                                       $ 194,798                                                              $  144,612                                                              $   697,658                                                              $   455,299
                                                             Net effect from deferral in digital online revenues                                        31,829                            57,920                            137,563                            160,675  
                                                                                                                                                     -------------------- ------- --------------------                      -------------------- -------- --------------------                      -------------------- --------- --------------------                      -------------------- --------- --------------------
                     Non-GAAP Digital Online Revenues                                                                                                                   $ 226,627                                           $  202,532                                           $   835,221                                           $   615,974  
                                                                                                                                                     -------------------- ------- --------------------                      -------------------- -------- --------------------                      -------------------- --------- --------------------                      -------------------- --------- --------------------
                                                                                                                                                                                                                                                                                                                                                                              
Gross Profit
                     GAAP Gross Profit                                                                                                                                  $ 167,749                                                              $ (110,593 )                                                            $   599,825                                                              $   288,071
                                                             Net effect from deferral in net revenues and related cost of goods                                           (11,043 )                                                               309,026                                                                  106,531                                                                  502,565
                                                             sold
                                                             Stock-based compensation                                                                    2,388                             6,059                             15,323                             17,121  
                                                                                                                                                     -------------------- ------- --------------------                      -------------------- -------- --------------------                      -------------------- --------- --------------------                      -------------------- --------- --------------------
                     Non-GAAP Gross Profit                                                                                                             159,094                                           $  204,492                                           $   721,679                                           $   807,757  
                                                                                                                                                     -------------------- ------- --------------------                      -------------------- -------- --------------------                      -------------------- --------- --------------------                      -------------------- --------- --------------------
                                                                                                                                                                                                                                                                                                                                                                              
Income (Loss) from Operations
                     GAAP Income (Loss) from Operations                                                                                                                 $  44,575                                                              $ (242,353 )                                                            $   (10,828 )                                                            $  (258,463 )
                                                             Net effect from deferral in net revenues and related cost of goods                                           (11,043 )                                                               309,026                                                                  106,531                                                                  502,565
                                                             sold
                                                             Stock-based compensation                                                                                      15,852                                                                  12,772                                                                   69,996                                                                   65,246
                                                             Impact of business reorganization                                                             113                                 -                             72,513                                195  
                                                                                                                                                     -------------------- ------- --------------------                      -------------------- -------- --------------------                      -------------------- --------- --------------------                      -------------------- --------- --------------------
                     Non-GAAP Income from Operations                                                                                                                    $  49,497                                           $   79,445                                           $   238,212                                           $   309,543  
                                                                                                                                                     -------------------- ------- --------------------                      -------------------- -------- --------------------                      -------------------- --------- --------------------                      -------------------- --------- --------------------
                                                                                                                                                                                                                                                                                                                                                                              
Net Income (Loss)
                     GAAP Net Income (Loss)                                                                                                                             $  46,399                                                              $ (242,791 )                                                            $    (8,302 )                                                            $  (279,470 )
                                                             Net effect from deferral in net revenues and related cost of goods                                            (9,529 )                                                               279,554                                                                   92,370                                                                  451,749
                                                             sold
                                                             Stock-based compensation                                                                                      13,109                                                                  11,450                                                                   48,061                                                                   36,206
                                                             Gain on long-term investments, net                                                                            (2,683 )                                                                     -                                                                   (2,683 )                                                                 (9,999 )
                                                             Impact of business reorganization                                                                                113                                                                       -                                                                   72,513                                                                      156
                                                             Non-cash amortization of discount on Convertible Notes                                                         4,061                                                                   5,806                                                                   15,043                                                                   18,933
                                                             Non-cash tax expense                                                                          245                               265                              1,296                              1,669  
                                                                                                                                                     -------------------- ------- --------------------                      -------------------- -------- --------------------                      -------------------- --------- --------------------                      -------------------- --------- --------------------
                     Non-GAAP Net Income                                                                                                                                $  51,715                                           $   54,284                                           $   218,298                                           $   219,244  
                                                                                                                                                     ==================== ======= ====================                      ==================== ======== ====================                      ==================== ========= ====================                      ==================== ========= ====================
                                                                                                                                                                                                                                                                                                                                                                              
Diluted Earnings (Loss) Per Share
                     GAAP earnings (loss) per share                                                                                                                     $    0.48                                                              $    (2.99 )                                                            $     (0.10 )                                                            $     (3.48 )
                     Non-GAAP earnings per share                                                                                                                        $    0.46                                                              $     0.49                                                              $      1.96                                                              $      1.98
                                                                                                                                                                                                                                                                                                                                                                              
                     Number of diluted shares used in computation
                                                             GAAP                                                                                                         114,496                                                                  81,085                                                                   83,417                                                                   80,367
                                                             Non-GAAP                                                                                                     114,496                                                                 114,034                                                                  114,161                                                                  113,951
                                                                                                                                                                                                                                                                                                                                                                              
                                                                                                                                                                                                                                                                                                                                                                              
Computation of Diluted GAAP EPS:
                     Net income (loss)                                                                                                                                  $  46,399                                                              $ (242,791 )                                                            $    (8,302 )                                                            $  (279,470 )
                                          Less: net income allocated to participating securities                                                                           (1,092 )                                                                     -                                                                        -                                                                        -
                                          Add: interest expense, net of tax, on Convertible Notes                                                        8,172                                 -                                  -                                  -  
                                                                                                                                                     -------------------- ------- --------------------                      -------------------- -------- --------------------                      -------------------- --------- --------------------                      -------------------- --------- --------------------
                                                             Net income (loss) for diluted EPS calculation                                                              $  53,479                                           $ (242,791 )                                                            $    (8,302 )                                                            $  (279,470 )
                                                                                                                                                     ==================== ======= ====================                      ==================== ======== ====================                      ==================== ========= ====================                      ==================== ========= ====================
                                                                                                                                                                                                                                                                                                                                                                              
                     Weighted average shares outstanding - basic                                                                                                           86,375                                                                  81,085                                                                   83,417                                                                   80,367
                                          Add: dilutive effect of common stock equivalents                                                              28,121                                 -                                  -                                  -  
                                                                                                                                                     -------------------- ------- --------------------                      -------------------- -------- --------------------                      -------------------- --------- --------------------                      -------------------- --------- --------------------
                                                             Total weighted average shares outstanding - diluted                                                          114,496                                                                  81,085                                                                   83,417                                                                   80,367
                                          Less: weighted average participating shares outstanding                                                       (2,694 )                                                  -                                  -                                  -  
                                                                                                                                                     -------------------- ------- --------------------                      -------------------- -------- --------------------                      -------------------- --------- --------------------                      -------------------- --------- --------------------
                                                             Weighted average common shares outstanding - diluted                                                         111,802                                                                  81,085                                                                   83,417                                                                   80,367
                                                                                                                                                                                                                                                                                                                     
                                                                                                                                                     --------------------------------------------------                     ---------------------------------------------------                     ----------------------------------------------------                     ----------------------------------------------------
                     Diluted earnings (loss) per share                                                                                                                  $    0.48                                           $    (2.99 )                                                            $     (0.10 )                                                            $     (3.48 )
                                                                                                                                                     ==================== ======= ====================                      ==================== ======== ====================                      ==================== ========= ====================                      ==================== ========= ====================
                                                                                                                                                                                                                                                                                                                                                                              
                                                                                                                                                                                                                                                                                                                                                                              
Computation of Diluted Non-GAAP EPS:
                     Non-GAAP net income                                                                                                                                $  51,715                                                              $   54,284                                                              $   218,298                                                              $   219,244
                                          Less: net income allocated to participating securities                                                                           (1,217 )                                                                (3,091 )                                                                 (7,146 )                                                                (13,716 )
                                          Add: interest expense, net of tax, on Convertible Notes                                                        1,390                             1,375                              5,579                              5,515  
                                                                                                                                                     -------------------- ------- --------------------                      -------------------- -------- --------------------                      -------------------- --------- --------------------                      -------------------- --------- --------------------
                                                             Net income for diluted earnings per share calculation                                                      $  51,888                                           $   52,568                                           $   216,731                                           $   211,043  
                                                                                                                                                     ==================== ======= ====================                      ==================== ======== ====================                      ==================== ========= ====================                      ==================== ========= ====================
                                                                                                                                                                                                                                                                                                                                                                              
                     Weighted average shares outstanding - basic                                                                                                           86,375                                                                  87,579                                                                   87,154                                                                   87,496
                                          Add: dilutive effect of common stock equivalents                                                              28,121                            26,455                             27,007                             26,455  
                                                                                                                                                     -------------------- ------- --------------------                      -------------------- -------- --------------------                      -------------------- --------- --------------------                      -------------------- --------- --------------------
                                                             Total weighted average shares outstanding - diluted                                                          114,496                                                                 114,034                                                                  114,161                                                                  113,951
                                          Less: weighted average participating shares outstanding                                                       (2,694 )                                             (6,494 )                                              (3,737 )                                              (7,129 )
                                                                                                                                                     -------------------- ------- --------------------                      -------------------- -------- --------------------                      -------------------- --------- --------------------                      -------------------- --------- --------------------
                                                             Weighted average common shares outstanding - diluted                                                         111,802                                                                 107,540                                                                  110,424                                                                  106,822
                                                                                                                                                                                                                                                                                                                     
                                                                                                                                                     --------------------------------------------------                     ---------------------------------------------------                     ----------------------------------------------------                     ----------------------------------------------------
                     Diluted earnings per share                                                                                                                         $    0.46                                           $     0.49                                           $      1.96                                           $      1.98  
                                                                                                                                                     ==================== ======= ====================                      ==================== ======== ====================                      ==================== ========= ====================                      ==================== ========= ====================
                                                                                                                                                                                                                                                                                                                                                                                                             
                                                                                                                                                                                                
TAKE-TWO INTERACTIVE SOFTWARE, INC. and SUBSIDIARIES
Net Revenue by Geographic Region, Distribution Channel, and
Platform Mix
(in thousands)
                                                                                                                                                   
                                                                                                                                             Three Months Ended                                                                                     Three Months Ended
                                                                                                                                               March 31, 2016                                                                                         March 31, 2015
                                                                                                             ----------------------------------------------------------------------------                           -----------------------------------------------------------------------------
                                                                                                                                   Amount                                           % of Total                                 Amount                                            % of Total
                                                                                                             --------------------------------------------------                     -----------                     -----------------------------                     --------------------------------
                                                                                                                                                                                                                                                                       
   GAAP Net Revenues by Geographic Region
        United States                                                                                                           $ 196,037                                              52 %                                            $ 164,657                              55 %
        International                                                                                          181,169                           48 %                           135,432                              45 %
                                                                                                             -------------------- ------- --------------------                      ----- ----                      -------------------- -------                      ---------- --------------------
Total GAAP net revenues                                                                                        377,206                          100 %                           300,089                             100 %
                                                                                                             -------------------- ------- --------------------                      ----- ----                      -------------------- -------                      ---------- --------------------
                                                                                                                                                                                                                                                                       
Change in Deferred Net Revenues
        United States                                                                                                           $  (4,159 )                                                                                            $  61,941
        International                                                                                          (30,535 )                                                                            65,706
                                                                                                             -------------------- ------- --------------------                                                      -------------------- -------
Total changes in deferred net revenues                                                                         (34,694 )                                                                           127,647
                                                                                                             -------------------- ------- --------------------                                                      -------------------- -------
                                                                                                                                                                                                                                                                       
Non-GAAP Net Revenues by Geographic Region
        United States                                                                                                           $ 191,878                                              56 %                                            $ 226,598                              53 %
        International                                                                                          150,634                           44 %                           201,138                              47 %
                                                                                                             -------------------- ------- --------------------                      ----- ----                      -------------------- -------                      ---------- --------------------
Total non-GAAP net revenues                                                                                                     $ 342,512                          100 %                                            $ 427,736                             100 %
                                                                                                             ==================== ======= ====================                      ===== ====                      ==================== =======                      ========== ====================
                                                                                                                                                                                                                                                                       
                                                                                                                                                                                                                                                                       
                                                                                                                                             Three Months Ended                                                                                     Three Months Ended
                                                                                                                                               March 31, 2016                                                                                         March 31, 2015
                                                                                                             ----------------------------------------------------------------------------                           -----------------------------------------------------------------------------
                                                                                                                                   Amount                                           % of Total                                 Amount                                            % of Total
                                                                                                             --------------------------------------------------                     -----------                     -----------------------------                     --------------------------------
                                                                                                                                                                                                                                                                       
GAAP Net Revenues by Distribution Channel
        Physical retail and other                                                                                               $ 182,408                                              48 %                                            $ 155,477                              52 %
        Digital online                                                                                         194,798                           52 %                           144,612                              48 %
                                                                                                             -------------------- ------- --------------------                      ----- ----                      -------------------- -------                      ---------- --------------------
Total GAAP net revenues                                                                                        377,206                          100 %                           300,089                             100 %
                                                                                                             -------------------- ------- --------------------                      ----- ----                      -------------------- -------                      ---------- --------------------
                                                                                                                                                                                                                                                                       
Change in Deferred Net Revenues
        Physical retail and other                                                                                               $ (66,523 )                                                                                            $  69,727
        Digital online                                                                                          31,829                                                           57,920
                                                                                                             -------------------- ------- --------------------                                                      -------------------- -------
Total changes in deferred net revenues                                                                         (34,694 )                                                                           127,647
                                                                                                             -------------------- ------- --------------------                                                      -------------------- -------
                                                                                                                                                                                                                                                                       
Non-GAAP Net Revenues by Distribution Channel
        Physical retail and other                                                                                               $ 115,885                                              34 %                                            $ 225,204                              53 %
        Digital online                                                                                         226,627                           66 %                           202,532                              47 %
                                                                                                             -------------------- ------- --------------------                      ----- ----                      -------------------- -------                      ---------- --------------------
Total non-GAAP net revenues                                                                                                     $ 342,512                          100 %                                            $ 427,736                             100 %
                                                                                                             ==================== ======= ====================                      ===== ====                      ==================== =======                      ========== ====================
                                                                                                                                                                                                                                                                       
                                                                                                                                                                                                                                                                       
                                                                                                                                             Three Months Ended                                                                                     Three Months Ended
                                                                                                                                               March 31, 2016                                                                                         March 31, 2015
                                                                                                             ----------------------------------------------------------------------------                           -----------------------------------------------------------------------------
                                                                                                                                   Amount                                           % of Total                                 Amount                                            % of Total
                                                                                                             --------------------------------------------------                     -----------                     -----------------------------                     --------------------------------
GAAP Net Revenues by Platform Mix
        Console                                                                                                                 $ 288,785                                              77 %                                            $ 260,969                              87 %
        PC and other                                                                                            88,421                           23 %                            39,120                              13 %
                                                                                                             -------------------- ------- --------------------                      ----- ----                      -------------------- -------                      ---------- --------------------
Total GAAP net revenues                                                                                        377,206                          100 %                           300,089                             100 %
                                                                                                             -------------------- ------- --------------------                      ----- ----                      -------------------- -------                      ---------- --------------------
                                                                                                                                                                                                                                                                       
Change in Deferred Net Revenues
        Console                                                                                                                 $ (30,253 )                                                                                            $ 114,171
        PC and other                                                                                            (4,441 )                                                                            13,476
                                                                                                             -------------------- ------- --------------------                                                      -------------------- -------
Total changes in deferred net revenues                                                                         (34,694 )                                                                           127,647
                                                                                                             -------------------- ------- --------------------                                                      -------------------- -------
                                                                                                                                                                                                                                                                       
Non-GAAP Net Revenues by Platform Mix
        Console                                                                                                                 $ 258,532                                              75 %                                            $ 375,140                              88 %
        PC and other                                                                                            83,980                           25 %                            52,596                              12 %
                                                                                                             -------------------- ------- --------------------                      ----- ----                      -------------------- -------                      ---------- --------------------
Total non-GAAP net revenues                                                                                                     $ 342,512                          100 %                                            $ 427,736                             100 %
                                                                                                             ==================== ======= ====================                      ===== ====                      ==================== =======                      ========== ====================
                                                                                                                                                                                                                                                                                  
 
TAKE-TWO INTERACTIVE SOFTWARE, INC. and SUBSIDIARIES
Net Revenue by Geographic Region, Distribution Channel, and
Platform Mix
(in thousands)
                                                                                                                                  
                                                                                                                                   Twelve Months Ended                                                                      Twelve Months Ended
                                                                                                                                     March 31, 2016                                                                           March 31, 2015
                                                                                                             ----------------------------------------------------------                          --------------------------------------------------------------------
                                                                                                                         Amount                                  % of Total                                  Amount                                       % of Total
                                                                                                             -------------------------------                     -----------                     -------------------------------                     ---------------------
                                                                                                                                                                                                                                                      
   GAAP Net Revenues by Geographic Region
        United States                                                                                                           $   742,963                         53 %                                            $   623,080                              58 %
        International                                                                                            670,735                         47 %                             459,858                              42 %
                                                                                                             -------------------- ---------                      ----- ----                      -------------------- ---------                      ---------- ---------
Total GAAP net revenues                                                                                        1,413,698                        100 %                           1,082,938                             100 %
                                                                                                             -------------------- ---------                      ----- ----                      -------------------- ---------                      ---------- ---------
                                                                                                                                                                                                                                                      
Change in Deferred Net Revenues
        United States                                                                                                           $    97,770                                                                         $   269,349
        International                                                                                             49,158                                                          316,478
                                                                                                             -------------------- ---------                                                      -------------------- ---------
Total changes in deferred net revenues                                                                           146,928                                                          585,827
                                                                                                             -------------------- ---------                                                      -------------------- ---------
                                                                                                                                                                                                                                                      
Non-GAAP Net Revenues by Geographic Region
        United States                                                                                                           $   840,733                         54 %                                            $   892,429                              53 %
        International                                                                                            719,893                         46 %                             776,336                              47 %
                                                                                                             -------------------- ---------                      ----- ----                      -------------------- ---------                      ---------- ---------
Total non-GAAP net revenues                                                                                                     $ 1,560,626                        100 %                                            $ 1,668,765                             100 %
                                                                                                             ==================== =========                      ===== ====                      ==================== =========                      ========== =========
                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                      
                                                                                                                                   Twelve Months Ended                                                                      Twelve Months Ended
                                                                                                                                     March 31, 2016                                                                           March 31, 2015
                                                                                                             ----------------------------------------------------------                          --------------------------------------------------------------------
                                                                                                                         Amount                                  % of Total                                  Amount                                       % of Total
                                                                                                             -------------------------------                     -----------                     -------------------------------                     ---------------------
                                                                                                                                                                                                                                                      
GAAP Net Revenues by Distribution Channel
        Physical retail and other                                                                                               $   716,040                         51 %                                            $   627,639                              58 %
        Digital online                                                                                           697,658                         49 %                             455,299                              42 %
                                                                                                             -------------------- ---------                      ----- ----                      -------------------- ---------                      ---------- ---------
Total GAAP net revenues                                                                                        1,413,698                        100 %                           1,082,938                             100 %
                                                                                                             -------------------- ---------                      ----- ----                      -------------------- ---------                      ---------- ---------
                                                                                                                                                                                                                                                      
Change in Deferred Net Revenues
        Physical retail and other                                                                                               $     9,365                                                                         $   425,152
        Digital online                                                                                           137,563                                                          160,675
                                                                                                             -------------------- ---------                                                      -------------------- ---------
Total changes in deferred net revenues                                                                           146,928                                                          585,827
                                                                                                             -------------------- ---------                                                      -------------------- ---------
                                                                                                                                                                                                                                                      
Non-GAAP Net Revenues by Distribution Channel
        Physical retail and other                                                                                               $   725,405                         46 %                                            $ 1,052,791                              63 %
        Digital online                                                                                           835,221                         54 %                             615,974                              37 %
                                                                                                             -------------------- ---------                      ----- ----                      -------------------- ---------                      ---------- ---------
Total non-GAAP net revenues                                                                                                     $ 1,560,626                        100 %                                            $ 1,668,765                             100 %
                                                                                                             ==================== =========                      ===== ====                      ==================== =========                      ========== =========
                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                      
                                                                                                                                   Twelve Months Ended                                                                      Twelve Months Ended
                                                                                                                                     March 31, 2016                                                                           March 31, 2015
                                                                                                             ----------------------------------------------------------                          --------------------------------------------------------------------
                                                                                                                         Amount                                  % of Total                                  Amount                                       % of Total
                                                                                                             -------------------------------                     -----------                     -------------------------------                     ---------------------
GAAP Net Revenues by Platform Mix
        Console                                                                                                                 $ 1,167,623                         83 %                                            $   881,516                              81 %
        PC and other                                                                                             246,075                         17 %                             201,422                              19 %
                                                                                                             -------------------- ---------                      ----- ----                      -------------------- ---------                      ---------- ---------
Total GAAP net revenues                                                                                        1,413,698                        100 %                           1,082,938                             100 %
                                                                                                             -------------------- ---------                      ----- ----                      -------------------- ---------                      ---------- ---------
                                                                                                                                                                                                                                                      
Change in Deferred Net Revenues
        Console                                                                                                                 $    12,687                                                                         $   564,794
        PC and other                                                                                             134,241                                                           21,033
                                                                                                             -------------------- ---------                                                      -------------------- ---------
Total changes in deferred net revenues                                                                           146,928                                                          585,827
                                                                                                             -------------------- ---------                                                      -------------------- ---------
                                                                                                                                                                                                                                                      
Non-GAAP Net Revenues by Platform Mix
        Console                                                                                                                 $ 1,180,310                         76 %                                            $ 1,446,310                              87 %
        PC and other                                                                                             380,316                         24 %                             222,455                              13 %
                                                                                                             -------------------- ---------                      ----- ----                      -------------------- ---------                      ---------- ---------
Total non-GAAP net revenues                                                                                                     $ 1,560,626                        100 %                                            $ 1,668,765                             100 %
                                                                                                             ==================== =========                      ===== ====                      ==================== =========                      ========== =========

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SOURCE: Take-Two Interactive

Take-Two Interactive Software, Inc. 
Investor Relations: 
Henry A. Diamond, 646-536-3005 
Senior Vice President 
Investor Relations & Corporate Communications 
Henry.Diamond@take2games.com 
or 
Corporate Press: 
Alan Lewis, 646-536-2983 
Vice President 
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Alan.Lewis@take2games.com


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