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 Take-Two Interactive Software, Inc. Reports Strong Results for Fiscal Year 2017
   Tuesday, May 23, 2017 7:00:01 AM ET

--GAAP Net income increased to $0.72 per diluted share

--Net cash provided by operating activities grew 27% to $331.4 million

--Bookings grew 19% to $1.796 billion

Take-Two Interactive Software, Inc. (TTWO ) today reported strong results for its fourth quarter and fiscal year 2017, ended March 31, 2017, and provided its initial financial outlook for its first quarter and fiscal year 2018.

Fiscal Fourth Quarter 2017 GAAP Financial Highlights

Net revenue grew 52% to $571.6 million, as compared to $377.2 million in last year’s fiscal fourth quarter. The largest contributors to net revenue in fiscal fourth quarter 2017 were Mafia III, Grand Theft Auto V(R) and Grand Theft Auto Online, NBA(R) 2K17, WWE(R) 2K17, and Sid Meier’s Civilization(R) VI.



Digitally-delivered net revenue grew 43% to $278.7 million, as compared to $194.8 million in last year’s fiscal fourth quarter. Recurrent consumer spending (virtual currency, downloadable add-on content and microtransactions) accounted for 50% of digitally-delivered net revenue, or 24% of total net revenue. The largest contributors to digitally-delivered net revenue in fiscal fourth quarter 2017 were Grand Theft Auto V and Grand Theft Auto Online, NBA 2K17, Mafia III, Sid Meier’s Civilization VI, and XCOM(R) 2.

Net income increased to $99.3 million, or $0.89 per diluted share, as compared to $46.4 million, or $0.48 per diluted share, for the year-ago period.

The following data, together with a management reporting tax rate of 22%, are used internally by the Company’s management and Board of Directors to adjust the Company’s GAAP financial results in order to facilitate comparison of its operating performance between periods and to better understand its core business and future outlook:

                                                                                                                                                                                                   Three Months Ended March 31, 2017
                                                ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                                                                         
                                                                                                                                                                                                                                                                             Financial Data
                                                                                                                                            ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                     Statement                              Change in               Stock-based               Non-cash               Acquisition-             Amortization
                                                                        of                                                                      deferred net                                                   compensation                                                   amortization                                                      related                                                     of intangible
                                                                    Operations                                                                   revenue and                                                                                                                   of discount                                                     expenses                                                        assets
                                                                                                                                                   related                                                                                                                         on
                                                                                                                                                    cost                                                                                                                       Convertible
                                                                                                                                                of goods sold                                                                                                                     Notes
                                                -----------------------------------------------   -------------------- -------------------- -------------------  -------------------- -------------------- -------------------  -------------------- -------------------- -------------------- -------------------- -------------------- -------------------  -------------------- -------------------- -------------------
                                                                                                                                                                                                                                                                                                                                                                                                         
Net revenue                                                        $ 571,556                                                                  (164,429 )
Cost of goods sold                                314,900         (118,285 )                 (5,083 )                             (2,630 )
                                                -------------------- ------- -------------------- -------------------- -------------------- ---------- --------- -------------------- -------------------- ---------- --------- -------------------- -------------------- -------------------- -------------------- -------------------- ----------------------------------------- -------------------- ---------- ---------
                                                                                                                                                                                                                                                                                                                                                                                                         
Gross profit                                                         256,656                                                                   (46,144 )                                                        5,083                                                                                                                                                                                        2,630
                                                                                                                                                                                                                                                                                                                                                                                                         
Total operating expenses                          145,153                (21,375 )                       (1,598 )                 (2,564 )
                                                -------------------- ------- -------------------- -------------------- -------------------- ----------------------------------------- -------------------- ---------- --------- -------------------- -------------------- -------------------- -------------------- -------------------- ---------- --------- -------------------- -------------------- ---------- ---------
                                                                                                                                                                                                                                                                                                                                                                                                         
Income from operations                                               111,503                                                                   (46,144 )                                                       26,458                                                                                                                         1,598                                                          5,194
Interest and other, net                              (392 )                                                   3,351            
                                                -------------------- ------- -------------------- -------------------- -------------------- ----------------------------------------- -------------------- ----------------------------------------- -------------------- -------------------- -------------------- -------------------- ----------------------------------------- -------------------- ---------------------
Income before income taxes                                           111,111                                                                   (46,144 )                                                       26,458                                                                    3,351                                                1,598                                                          5,194
                                                                                                                                                                                                                                                                                                                                                                                                         
Earnings per share
Diluted                                                                 0.89
                                                                                                                                                                                                                                                                                                                                                                                                         

In order to calculate net income per diluted share for management reporting purposes, the Company uses its fully diluted share count of 117.2 million and adds back to net income interest expense, net of tax, on the convertible notes of $0.5 million.

Fiscal Fourth Quarter Operational Metric - Bookings

Total Bookings grew 14% to $370.6 million, as compared to $324.4 million during last year’s fiscal fourth quarter. The largest contributors to Bookings were Grand Theft Auto V and Grand Theft Auto Online, NBA 2K17, WWE 2K17, and Sid Meier’s Civilization VI. Catalog accounted for $216.8 million of Bookings led by Grand Theft Auto. Digitally-delivered Bookings grew 24% to $267.4 million, as compared to $209.5 million in last year’s fiscal fourth quarter, led by Grand Theft Auto V and Grand Theft Auto Online, NBA 2K17, WWE SuperCard and WWE 2K17, and Sid Meier’s Civilization VI. Bookings from recurrent consumer spending grew 64% year-over-year and accounted for 70% of digitally-delivered Bookings, or 50% of total Bookings.

Fiscal Year 2017 GAAP Financial Highlights

Net revenue grew 26% to $1.780 billion, as compared to $1.414 billion in fiscal year 2016. The largest contributors to net revenue in fiscal year 2017 were Grand Theft Auto V and Grand Theft Auto Online, NBA 2K16 and NBA 2K17, Mafia III, WWE 2K17, and Sid Meier’s Civilization VI.

Digitally-delivered net revenue grew 32% to $921.7 million, as compared to $697.7 million in fiscal year 2016. Recurrent consumer spending accounted for 50% of digitally-delivered net revenue, or 26% of total net revenue. The largest contributors to digitally-delivered net revenue in fiscal year 2017 were Grand Theft Auto V and Grand Theft Auto Online, NBA 2K16 and NBA 2K17, Sid Meier’s Civilization VI, WWE SuperCard and WWE 2K17, and Mafia III.

Net income increased to $67.3 million, or $0.72 per diluted share, as compared to net loss of $8.3 million, or $0.10 per diluted share, in fiscal year 2016.

Net cash provided by operating activities grew 27% to $331.4 million. As of March 31, 2017, the Company had cash and short-term investments of $1.392 billion.

The following data, together with a management reporting tax rate of 22%, are used internally by the Company’s management and Board of Directors to adjust the Company’s GAAP financial results in order to facilitate comparison of its operating performance between periods and to better understand its core business and future outlook:

                                                                                                                                                                            Twelve Months Ended March 31, 2017
                                                        ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                                                                                                
                                                                                                                                                                                                                                             Financial Data
                                                                                                                                 ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                              Statement                             Change in             Stock-based             Non-cash             Acquisition-           Amortization              Gain on
                                                                                 of                                                  deferred net                              compensation                              amortization                                 related                                of intangible                               long-term
                                                                             Operations                                               revenue and                                                                         of discount                                expenses                                   assets                                  investments
                                                                                                                                        related                                                                               on
                                                                                                                                         cost                                                                             Convertible
                                                                                                                                     of goods sold                                                                           Notes
                                                        -------------------------------------------------   -------------------- -------------------- -------------------- -------------------  -------------------- -------------------- -------------------- -------------------  -------------------- -------------------  -------------------- -------------------
                                                                                                                                                                                                                                                                                                                                                    
Net revenue                                                                $ 1,779,748                                                        124,198
Cost of goods sold                                        1,022,959                    3,994      (21,056 )                       (2,630 )            
                                                        -------------------- --------- -------------------- -------------------- -------------------- -------------------- ---------- --------- -------------------- -------------------- -------------------- ----------------------------------------- ---------- --------- -------------------- ---------------------
                                                                                                                                                                                                                                                                                                                                                    
Gross profit                                                                   756,789                                                        120,204                          21,056                                                                                                                         2,630
                                                                                                                                                                                                                                                                                                                                                    
Total operating expenses                                    665,484            (60,823 )                   (1,916 )               (2,564 )            
                                                        -------------------- --------- -------------------- -------------------- -------------------- -------------------- ---------- --------- -------------------- -------------------- -------------------- ---------- --------- -------------------- ---------- --------- -------------------- ---------------------
                                                                                                                                                                                                                                                                                                                                                    
Income from operations                                                          91,305                                                        120,204                          81,879                                                                               1,916                                     5,194
Interest and other, net                                                        (15,690 )                                                                                                                                           21,254
Gain on long-term investments, net                            1,350                             (1,350 )
                                                        -------------------- --------- -------------------- -------------------- -------------------- -------------------- ----------------------------------------- -------------------- -------------------- ----------------------------------------- ----------------------------------------- ---------- ---------
Income before income taxes                                                      76,965                                                        120,204                          81,879                                              21,254                           1,916                                     5,194                                    (1,350 )
                                                                                                                                                                                                                                                                                                                                                    
Earnings per share
Diluted                                                                    $      0.72
                                                                                                                                                                                                                                                                                                                                                    

In order to calculate net income per diluted share for management reporting purposes, the Company uses its fully diluted share count of 115.9 million and adds back to net income interest expense, net of tax, on the convertible notes of $4.7 million.

Fiscal Year 2017 Operational Metric - Bookings

Total Bookings grew 19% to $1.796 billion, as compared to $1.507 billion in fiscal year 2016. The largest contributors to Bookings were Grand Theft Auto V and Grand Theft Auto Online, NBA 2K17 and NBA 2K16, Mafia III, WWE 2K17, and Sid Meier’s Civilization VI. Digitally-delivered Bookings grew 25% to $987.2 million, as compared to $790.1 million in fiscal year 2016, led by Grand Theft Auto V and Grand Theft Auto Online, NBA 2K17, Sid Meier’s Civilization VI, WWE SuperCard and WWE 2K17, and Mafia III. Bookings from recurrent consumer spending grew 52% year-over-year and accounted for 57% of digitally-delivered Bookings, or 32% of total Bookings.

New Operational Metric - Net Sales

Starting with its financial outlook for the first quarter ending June 30, 2017, Take-Two will replace Bookings with Net Sales as an operational metric. The Company is making this change in order to increase transparency and to be consistent with operational metrics provided by peers. Net Sales is defined as the net amount of products and services sold digitally or sold-in physically during the period. Unlike Bookings, Net Sales includes licensing fees, merchandise, in-game advertising, strategy guides and publisher incentives.

Management Comments

"Consumer demand for our entertainment offerings remained exceedingly strong in the fourth quarter, finishing-off another outstanding year for our organization," said Strauss Zelnick, Chairman and CEO of Take-Two. "During fiscal 2017, we delivered Bookings and cash provided by operating activities that significantly exceeded our original expectations, along with revenue growth and margin expansion. These results were driven by the continued extraordinary performance of Grand Theft Auto V and Grand Theft Auto Online, a diverse array of exciting titles from 2K, and record digitally-delivered revenue and Bookings, including our highest-ever from recurrent consumer spending. We invested our capital to grow and diversify our business further, including by acquiring Social Point, a leading free-to-play mobile game developer.

"As announced yesterday, Rockstar Games has decided to move the release of Red Dead Redemption 2 to Spring 2018. As Rockstar stated, Red Dead Redemption 2 will be their first game created from the ground up for the latest generation of console hardware, and some extra time is necessary to ensure that they deliver the best experience possible. Such decisions are not made lightly, and are driven by our team’s unwavering commitment to unparalleled quality.

"That said, we still expect fiscal 2018 to be a year of strong earnings and cash provided by operating activities for Take-Two, despite an unusually light release slate, driven by new releases of NBA 2K and WWE 2K, our robust catalog led by Grand Theft Auto, and innovative offerings designed to drive engagement and recurrent consumer spending. Looking ahead to fiscal 2019, we expect to deliver both record Net Sales and record net cash provided by operating activities, in excess of $2.5 billion and $700 million, respectively, led by the launches of Rockstar Games’ Red Dead Redemption 2 and a highly anticipated new title from one of 2K’s biggest franchises."

Business and Product Highlights

Since January 1, 2017:

Take-Two:

-- Expanded its relationship with the NBA through the creation of the NBA 2K eSports League, a new, professional competitive gaming league. Set to debut in 2018, this groundbreaking competitive gaming league is jointly owned by Take-Two and the NBA, and will consist of teams operated by actual NBA franchises. The NBA 2K eSports League will follow a professional sports league format: competing head-to-head throughout a regular season, participating in a bracketed playoff system, and concluding with a championship matchup.

-- Broadened the skills of its Board of Directors through the appointment of LaVerne Srinivasan to the Board and to its Corporate Governance Committee. Ms. Srinivasan is Vice President of the National Program and Program Director for Education at the Carnegie Corporation of New York. Prior to her current position, she worked at various educational technology, urban district change, and non-profit education reform companies. From 1993 through 2003, she served in various roles at BMG Entertainment, including Senior Vice President and General Counsel. Ms. Srinivasan holds an A.B. in sociology from Harvard College and a J.D. from Harvard Law School.

-- Acquired privately-held Social Point S.L. for $250 million, comprised of $175 million in cash and 1,480,168 unregistered shares of Take-Two common stock (calculated by dividing $75 million by the average closing price per share on the Nasdaq Global Select Market during the thirty trading day period ending on January 26, 2017), plus potential earn-out consideration of up to an aggregate of $25.9 million in cash and shares of Take-Two common stock. The cash portion was funded from Take-Two’s cash on hand. Founded in 2008 and headquartered in Barcelona, Spain, Social Point is a highly-successful free-to-play mobile game developer that focuses on delivering high-quality, deeply-engaging entertainment experiences. The transaction is expected to be accretive to net income per share, excluding transaction costs and amortization of intangible assets, in fiscal year 2018.

Rockstar Games:

-- Released new free content updates for Grand Theft Auto Online, including: -- Cunning Stunts Special Vehicle Circuit Update, which features new vehicles and race types, as well as adding Props and psychedelic Stunt Tubes to the Stunt Race Creator;

-- Land Grab, which allows teams to battle across seven new maps to control territory in an unforgiving cyberspace;

-- Tiny Racers, an all-new retro-styled Adversary Mode, which pits players against each other on special tracks made for vehicular combat with a shifting bird’s eye perspective in the spirit of classic Grand Theft Auto titles.

-- Made Grand Theft Auto IV and Grand Theft Auto: Episodes from Liberty City available as part of Microsoft’s Xbox One Backwards Compatibility program, enabling owners of the Xbox 360 versions of Grand Theft Auto IV (including The Complete Edition), Grand Theft Auto: Episodes from Liberty City, Grand Theft Auto: The Lost and Damned and Grand Theft Auto: The Ballad of Gay Tony to play these games on Xbox One. In addition, Grand Theft Auto IV and Grand Theft Auto: Episodes from Liberty City are now available for purchase through digital download from the Games Store on Xbox One.

-- Announced that Red Dead Redemption 2(R) is now planned for release worldwide in Spring 2018 (fiscal year 2019) for PlayStation4 and Xbox One.

2K:

-- Launched WWE 2K17 for the PC, and released the title’s supporting Future Stars Pack and Hall of Fame Showcase downloadable add-on content. Developed collaboratively by Yuke’s and Visual Concepts, WWE 2K17 has sold-in approximately 3 million units to date.

-- Announced that NBA 2K will feature Hall of Famer Shaquille O’Neal on the cover of the NBA 2K18 Legend Edition. This special edition will place a spotlight on "The Big Aristotle" with special Shaq-themed memorabilia and content, extending his legacy as the most dominant center in NBA history. NBA 2K18 will be available for PlayStation(R)4 system and PlayStation(R)3 computer entertainment system, Xbox One and Xbox 360, Nintendo Switch, and Windows PC platforms on September 19, 2017.

-- Released the Australia Civilization & Scenario Pack and the Persia & Macedon Civilization & Scenario Pack for Sid Meier’s Civilization VI. Developed by Firaxis Games, Sid Meier’s Civilization VI received stellar reviews and is the fastest-selling release in the history of the series, with sell-in of nearly 2 million units to date. The title will be supported with additional free and paid downloadable add-on content.

-- Released the Faster Baby! downloadable add-on pack for Mafia III. Developed by Hangar 13, Mafia III will also be supported with the Stones Unturned and Sign of the Times add-on packs that are planned for release during summer 2017.

-- Released WWE SuperCard - Season 3 Update #3 for iOS and Android devices. Developed by Cat Daddy Games, Update #3 is a free update to WWE SuperCard, the popular WWE collectible card-battling game, which has now been downloaded more than 14 million times.

Financial Outlook for Fiscal 2018

Take-Two is providing its initial financial outlook for its fiscal first quarter ending June 30, 2017 and its fiscal year ending March 31, 2018.

First Quarter Ending June 30, 2017

-- GAAP net revenue is expected to range from $390 to $440 million

-- GAAP net income is expected to range from $74 to $85 million

-- GAAP diluted net income per share is expected to range from $0.65 to $0.75

-- Share count used to calculate diluted net income per share is expected to be 119.0 million (1)

-- Net Sales (operational metric) are expected to range from $240 to $290 million

The Company is also providing selected data and its management reporting tax rate of 22% that are used internally by its management and Board of Directors to adjust the Company’s GAAP financial outlook in order to facilitate comparison of its operating performance between periods and to better understand its core business and future outlook:

                                                                                                                             Three Months Ended June 30, 2017
                                                       -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                  
                                                                                                                                                                          Financial Data
                                                                                         ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
$ in millions                                              GAAP         Change in       Stock-based       Non-cash             Amortization              Reorganization
                                                        Outlook (2)                      deferred net                      compensation (3)                      amortization                              of Intangible
                                                                                          revenue and                                                             of discount                                 Assets
                                                                                            related                                                                   on
                                                                                            cost of                                                               Convertible
                                                                                          goods sold                                                                 Notes
                                                       ------------ -------------------- ------------ -------------------- ---------------- -------------------- ------------ -------------------- --------------------------   -------------------- --------------------
                                                                                                                                                                                           
Net revenue                                            $390 to $440                         ($150)
                                                                                                                                                                                                                                                      
Cost of goods sold                                     $147 to $175                          ($45)                               ($3)                                                                          ($4)                                          ($3)
                                                                                                                                                                                                                                                      
Operating Expenses                                     $160 to $170                                                              ($23)                                                                         ($4)                                          ($4)
                                                                                                                                                                                                                                                      
Interest and other, net                                     $3                                                                                                       ($3)
                                                                                                                                                                                                                                                      
Income (loss) before income taxes                       $80 to $93                          ($105)                                $26                                 $3                                        $8                                            $7
                                                                                                                                                                                                                                                      

Fiscal Year Ending March 31, 2018

-- GAAP net revenue is expected to range from $1.95 to $2.05 billion

-- GAAP net income is expected to range from $504 to $540 million

-- GAAP diluted net income per share is expected to range from $4.35 to $4.65

-- Share count used to calculate diluted net income per share is expected to be 119.7 million (4)

-- Net cash provided by operating activities is expected to be approximately $150 million

-- Capital expenditures are expected to be approximately $60 million

-- Net Sales (operational metric) are expected to range from $1.42 to $1.52 billion

The Company is also providing selected data and its management reporting tax rate of 22% that are used internally by its management and Board of Directors to adjust the Company’s GAAP financial outlook in order to facilitate comparison of its operating performance between periods and to better understand its core business and future outlook:

                                                                                                                            Twelve Months Ended March 31, 2018
                                                       -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                      
                                                                                                                                                                            Financial Data
                                                                                             -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------
$ in millions                                                GAAP           Change in             Stock-based             Non-cash     Amortization      Reorganization
                                                          Outlook (2)                        deferred net                            compensation (3)                            amortization                           of
                                                                                              revenue and                                                                         of discount                       Intangible
                                                                                                related                                                                               on                              Assets
                                                                                                cost of                                                                           Convertible
                                                                                              goods sold                                                                             Notes
                                                       ---------------- -------------------- ------------ -------------------- --------------------------   -------------------- ------------ -------------------- ------------ -------------------- --------------------
                                                                                                                                                                                           
Net revenue                                            $1,950 to $2,050                         ($533)
                                                                                                                                                                                                                                                      
Cost of goods sold                                       $671 to $712                            ($60)                                     ($13)                                                                       ($17)                                 ($3)
                                                                                                                                                                                                                                                      
Operating Expenses                                       $720 to $740                                                                      ($70)                                                                       ($15)                                 ($4)
                                                                                                                                                                                                                                                      
Interest and other, net                                       $10                                                                                                                    ($14)
                                                                                                                                                                                                                                                      
Income (loss) before income taxes                        $549 to $588                           ($473)                                      $83                                       $14                               $32                                   $7
                                                                                                                                                                                                                                                      
1)   Includes 105.8 million basic shares, 1.2 million participating
                        shares and 12.0 million shares representing the potential dilution
                        from convertible notes. The interest expense, net of tax, on the
                        convertible notes, which is added back to net income to calculate
                        diluted net income per share for management reporting purposes is
                        $0.6 million.
2)                      The individual components of the financial outlook may not foot to
                        the totals as the Company does not expect actual results for every
                        component to be at the low end or high end of the outlook range
                        simultaneously.
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.
4)                      Includes 106.8 million basic shares, 0.9 million participating
                        shares and 12.0 million shares representing the potential dilution
                        from convertible notes. The interest expense, net of tax, on the
                        convertible notes, which is added back to net income to calculate
                        diluted net income per share for management reporting purposes is
                        $2.2 million.
                         

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, 2017:

Label       Title                                                                                         Platforms                        Release Date
----- -------------------- -------------------- -------------------- ----------------------------------------------------------------------------------------- -------------------- -------------------- ---------------------------- -------------------- -------------------- -----------------
2K          WWE 2K17: Future Stars Pack (DLC)                                                             PS4, PS3, Xbox One, Xbox 360     January 17, 2017
2K                                                                   WWE 2K17                                                                                                                            PC                                                                     February 7, 2017
2K                                                                   WWE 2K17: Hall of Fame Showcase (DLC)                                                                                               PS4, PS3, Xbox One, Xbox 360                                           February 21, 2017
2K                                                                   Sid Meier’s Civilization VI: Australia Civilization & Scenario                                           PC                                                                     February 23, 2017
                                                                     Pack (DLC)
2K                                                                   Sid Meier’s Civilization VI: Persia & Macedon Civilization &                                             PC                                                                     March 23, 2017
                                                                     Scenario Pack (DLC)
2K                                                                   Mafia III: Faster Baby! (DLC)                                                                                                       PS4, Xbox One, PC                                                      March 28, 2017

Take-Two’s lineup of future titles announced to date includes:

Label              Title                                  Platforms                                    Release Date
-------------- -------------------- -------------------- ---------------------------------- -------------------- -------------------- ---------------------------------------- -------------------- -------------------- --------------------
2K                 Mafia III: Stones Unturned (DLC)       PS4, Xbox One, PC                            May 30, 2017
2K                                                       Mafia III: Sign of the Times (DLC)                                           PS4, Xbox One, PC                                                                  Summer 2017
2K                                                       NBA 2K18                                                                     PS4, PS3, Xbox One, Xbox 360, Switch, PC                                           September 19, 2017
2K                                                       WWE 2K18                                                                     TBA                                                                                Fall 2017
Rockstar Games                                           Red Dead Redemption 2                                                        PS4, Xbox One                                                                      Spring 2018
                                                                                                                                                                                                                          

Conference Call

Take-Two will host a conference call today at 8:00 a.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.

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 period ended March 31, 2017.

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 principally 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," "should," "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
                                                                                                                                                         (in thousands, except per share amounts)
                                                                                                                                                                                                                          
                                                                                                                              Three months ended March 31,                                                                                                                    Twelve months ended March 31,
                                                                                -------------------------------------------------------------------------------------------------------------------------                     -----------------------------------------------------------------------------------------------------------------------------
                                                                                    2017                             2016                              2017                               2016    
                                                                                -------------------- ------- --------------------                      -------------------- ------- --------------------                      -------------------- --------- --------------------                      -------------------- --------- --------------------
                                                                                                                                                                                                                                                                                                        
                                                                                                                                                                                                                                                                                                        
Net revenue                                                                                        $ 571,556                                           $ 377,206                                           $ 1,779,748                                           $ 1,413,698  
----------------------------------------------------------                      -------------------- ------- --------------------                      -------------------- ------- --------------------                      -------------------- --------- --------------------                      -------------------- --------- --------------------
                                                                                                                                                                                                                                                                                                        
Cost of goods sold:
   Internal royalties                                                                                 90,071                                                                 72,552                                                                  330,782                                                                  328,610
   Software development costs and royalties                                                          116,922                                                                 71,352                                                                  335,675                                                                  223,512
   Product costs                                                                                      85,787                                                                 46,554                                                                  255,914                                                                  200,206
   Licenses                                                                        22,120                           18,999                            100,588                             61,545  
----------------------------------------------------------                      -------------------- ------- --------------------                      -------------------- ------- --------------------                      -------------------- --------- --------------------                      -------------------- --------- --------------------
Total cost of goods sold                                                          314,900                          209,457                          1,022,959                            813,873  
----------------------------------------------------------                      -------------------- ------- --------------------                      -------------------- ------- --------------------                      -------------------- --------- --------------------                      -------------------- --------- --------------------
                                                                                                                                                                                                                                                                                                        
Gross profit                                                                                         256,656                                                                167,749                                                                  756,789                                                                  599,825
                                                                                                                                                                                                                                                                                                        
   Selling and marketing                                                                              38,312                                                                 38,020                                                                  285,453                                                                  198,309
   General and administrative                                                                         62,042                                                                 44,395                                                                  211,409                                                                  192,452
   Research and development                                                                           36,421                                                                 33,308                                                                  137,915                                                                  119,807
   Business reorganization                                                                                 -                                                                    113                                                                        -                                                                   71,285
   Depreciation and amortization                                                    8,378                            7,338                             30,707                             28,800  
----------------------------------------------------------                      -------------------- ------- --------------------                      -------------------- ------- --------------------                      -------------------- --------- --------------------                      -------------------- --------- --------------------
Total operating expenses                                                          145,153                          123,174                            665,484                            610,653  
----------------------------------------------------------                      -------------------- ------- --------------------                      -------------------- ------- --------------------                      -------------------- --------- --------------------                      -------------------- --------- --------------------
Income (loss) from operations                                                                        111,503                                                                 44,575                                                                   91,305                                                                  (10,828 )
Interest and other, net                                                                                 (392 )                                                               (6,257 )                                                                (15,690 )                                                                (30,205 )
Gain on long-term investments, net                                                      -                            2,683                              1,350                              2,683  
----------------------------------------------------------                      -------------------- ------- --------------------                      -------------------- ------- --------------------                      -------------------- --------- --------------------                      -------------------- --------- --------------------
Income (loss) before income taxes                                                                    111,111                                                                 41,001                                                                   76,965                                                                  (38,350 )
Provision for (benefit from) income taxes                       11,831                           (5,398 )                                               9,662                            (30,048 )
---------------------------------------------------------- -------------------- -------------------- ------- --------------------                      -------------------- ------- --------------------                      -------------------- --------- --------------------                      -------------------- --------- --------------------
Net income (loss)                                                                                  $  99,280                                           $  46,399                                           $    67,303                                           $    (8,302 )
==========================================================                      ==================== ======= ====================                      ==================== ======= ====================                      ==================== ========= ====================                      ==================== ========= ====================
                                                                                                                                                                                                                                                                                                        
Earnings (loss) per share:                                                                                                                                                                                                                     
                                                                                --------------------------------------------------                     --------------------------------------------------                     ----------------------------------------------------                     ----------------------------------------------------
Basic earnings (loss) per share                                                                    $    0.97                                           $    0.54                                           $      0.73                                           $     (0.10 )
                                                                                ==================== ======= ====================                      ==================== ======= ====================                      ==================== ========= ====================                      ==================== ========= ====================
                                                                                                                                                                                                                                                                                                        
Diluted earnings (loss) per share                                                                  $    0.89                                           $    0.48                               0.72                                           $     (0.10 )
                                                                                ==================== ======= ====================                      ==================== ======= ====================                      ==================== ========= ====================                      ==================== ========= ====================
                                                                                                                                                                                                                                                                                                        
Weighted average shares outstanding:                                                                                                                                                                                                           
                                                                                --------------------------------------------------                     --------------------------------------------------                     ----------------------------------------------------                     ----------------------------------------------------
Basic                                                                                                100,490                                                                 86,375                                                                   90,180                                                                   83,417
Diluted                                                                           117,245                          114,496                             94,073                             83,417  
==========================================================                      ==================== ======= ====================                      ==================== ======= ====================                      ==================== ========= ====================                      ==================== ========= ====================
                                                                                                                                                                                                                                                                                                        
Computation of Basic and Diluted EPS:
   Net income (loss)                                                                               $  99,280                                                              $  46,399                                                              $    67,303                                                              $    (8,302 )
   Less: net income allocated to participating securities                          (1,370 )                                            (1,447 )                                              (1,275 )                                                   -  
                                                                                -------------------- ------- --------------------                      -------------------- ------- --------------------                      -------------------- --------- --------------------                      -------------------- --------- --------------------
Net loss for basic and diluted EPS calculation                                                     $  97,910                                           $  44,952                                           $    66,028                                           $    (8,302 )
                                                                                ==================== ======= ====================                      ==================== ======= ====================                      ==================== ========= ====================                      ==================== ========= ====================
                                                                                                                                                                                                                                                                                                        
   Weighted average shares outstanding - basic                                                       101,896                                                                 86,375                                                              $    91,921                                                                   83,417
   Less: weighted average participating shares outstanding                         (1,406 )                                            (2,694 )                                              (1,741 )                                                   -  
                                                                                -------------------- ------- --------------------                      -------------------- ------- --------------------                      -------------------- --------- --------------------                      -------------------- --------- --------------------
      Weighted average common shares outstanding - basic                          100,490                           83,681                             90,180                             83,417  
                                                                                -------------------- ------- --------------------                      -------------------- ------- --------------------                      -------------------- --------- --------------------                      -------------------- --------- --------------------
                                                                                                                                                                                                                                               
                                                                                --------------------------------------------------                     --------------------------------------------------                     ----------------------------------------------------                     ----------------------------------------------------
   Basic earnings (loss) per share                                                                 $    0.97                                           $    0.54                                           $      0.73                                           $     (0.10 )
                                                                                ==================== ======= ====================                      ==================== ======= ====================                      ==================== ========= ====================                      ==================== ========= ====================
                                                                                                                                                                                                                                                                                                        
Computation of Diluted EPS:
   Net income (loss)                                                                               $  99,280                                                              $  46,399                                                              $    67,303                                                              $    (8,302 )
   Less: net income allocated to participating securities                                             (1,191 )                                                               (1,092 )                                                                 (1,246 )                                                                      -
   Add: interest expense, net of tax, on Convertible Notes                          4,980                            8,172                                  -                                  -  
                                                                                -------------------- ------- --------------------                      -------------------- ------- --------------------                      -------------------- --------- --------------------                      -------------------- --------- --------------------
      Net income (loss) for diluted EPS calculation                                                $ 103,069                                           $  53,479                                           $    66,057                                           $    (8,302 )
                                                                                ==================== ======= ====================                      ==================== ======= ====================                      ==================== ========= ====================                      ==================== ========= ====================
                                                                                                                                                                                                                                                                                                        
  Weighted average common shares outstanding - basic                                                 101,896                                                                 86,375                                                                   91,921                                                                   83,417
  Add: dilutive effect of common stock equivalents                                 15,349                           28,121                              2,152                                  -  
                                                                                -------------------- ------- --------------------                      -------------------- ------- --------------------                      -------------------- --------- --------------------                      -------------------- --------- --------------------
Total weighted average shares outstanding - diluted                                                  117,245                                                                114,496                                                                   94,073                                                                   83,417
Less: weighted average participating shares outstanding                            (1,406 )                                            (2,694 )                                              (1,741 )                                                   -  
                                                                                -------------------- ------- --------------------                      -------------------- ------- --------------------                      -------------------- --------- --------------------                      -------------------- --------- --------------------
      Weighted average common shares outstanding - diluted                        115,839                          111,802                             92,332                             83,417  
                                                                                -------------------- ------- --------------------                      -------------------- ------- --------------------                      -------------------- --------- --------------------                      -------------------- --------- --------------------
                                                                                                                                                                                                                                               
                                                                                --------------------------------------------------                     --------------------------------------------------                     ----------------------------------------------------                     ----------------------------------------------------
   Diluted earnings (loss) per share                                                               $    0.89                                           $    0.48                                           $      0.72                                           $     (0.10 )
                                                                                ==================== ======= ====================                      ==================== ======= ====================                      ==================== ========= ====================                      ==================== ========= ====================
                                                                                                                                                                                                                                                                                                                                       
 
                                                                                  TAKE-TWO INTERACTIVE SOFTWARE, INC. and SUBSIDIARIES
                                                                                               CONSOLIDATED BALANCE SHEETS
                                                                                        (in thousands, except per share amounts)
                                                                                                                              
                                                                                                                  March 31,                                                                March 31,
                                                                                                 2017                               2016    
                                                                                            -------------------- --------- --------------------                      -------------------- --------- --------------------
                                                                                                                                                                      
                                ASSETS
Current assets:
  Cash and cash equivalents                                                                                    $   943,396                                                              $   798,742
  Short-term investments                                                                                           448,932                                                                  470,820
  Restricted cash                                                                                                  337,818                                                                  261,169
                                                                                                                   219,558                                                                  168,527
  Accounts receivable, net of allowances of $66,483 and $45,552 at
  March 31, 2017 and 2016, respectively
  Inventory                                                                                                         16,323                                                                   15,888
  Software development costs and licenses                                                                           41,721                                                                  178,387
  Deferred cost of goods sold                                                                                      127,901                                                                   98,474
  Prepaid expenses and other                                                                     59,593                             53,269  
----------------------------------------------------------------------                      -------------------- --------- --------------------                      -------------------- --------- --------------------
     Total current assets                                                                     2,195,242                          2,045,276  
----------------------------------------------------------------------                      -------------------- --------- --------------------                      -------------------- --------- --------------------
                                                                                                                                                                      
  Fixed assets, net                                                                                                 67,300                                                                   77,127
  Software development costs and licenses, net of current portion                                                  381,910                                                                  214,831
  Deferred cost of goods sold, net of current portion                                                                    -                                                                   17,915
  Goodwill                                                                                                         359,115                                                                  217,080
  Other intangibles, net                                                                                           110,262                                                                    4,609
  Other assets                                                                                   35,325                             13,439  
----------------------------------------------------------------------                      -------------------- --------- --------------------                      -------------------- --------- --------------------
     Total assets                                                                                              $ 3,149,154                                           $ 2,590,277  
======================================================================                      ==================== ========= ====================                      ==================== ========= ====================
                                                                                                                                                                      
                 LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
  Accounts payable                                                                                             $    31,892                                                              $    30,448
  Accrued expenses and other current liabilities                                                                   750,875                                                                  607,479
  Deferred revenue                                                                              903,125                            582,484  
----------------------------------------------------------------------                      -------------------- --------- --------------------                      -------------------- --------- --------------------
     Total current liabilities                                                                1,685,892                          1,220,411  
----------------------------------------------------------------------                      -------------------- --------- --------------------                      -------------------- --------- --------------------
                                                                                                                                                                      
Long-term debt                                                                                                     251,929                                                                  497,935
Non-current deferred revenue                                                                                        10,406                                                                  216,319
Other long-term liabilities                                                                     197,199                             74,227  
----------------------------------------------------------------------                      -------------------- --------- --------------------                      -------------------- --------- --------------------
     Total liabilities                                                                        2,145,426                          2,008,892  
----------------------------------------------------------------------                      -------------------- --------- --------------------                      -------------------- --------- --------------------
                                                                                                                                                                      
                                                                                                                                                                      
Stockholders’ equity:
  Preferred stock, $.01 par value, 5,000 shares authorized                                                               -                                                                        -
  Common stock, $.01 par value, 200,000 shares authorized; 119,813 and
  103,765 shares
  issued and 102,621 and 86,573 outstanding at March 31, 2017 and                                                    1,198                                                                    1,038
  2016, respectively
  Additional paid-in capital                                                                                     1,452,754                                                                1,088,628
  Treasury stock, at cost; 17,192 common shares at March 31, 2017 and                                             (303,388 )                                                               (303,388 )
  2016, respectively
  Accumulated deficit                                                                                              (99,694 )                                                               (166,997 )
  Accumulated other comprehensive loss                                                          (47,142 )                                             (37,896 )
----------------------------------------------------------------------                      -------------------- --------- --------------------                      -------------------- --------- --------------------
     Total stockholders’ equity                                                               1,003,728                            581,385  
----------------------------------------------------------------------                      -------------------- --------- --------------------                      -------------------- --------- --------------------
     Total liabilities and stockholders’ equity                                                                $ 3,149,154                                           $ 2,590,277  
======================================================================                      ==================== ========= ====================                      ==================== ========= ====================
                                                                                                                                                                                                     
 
                                                                                          TAKE-TWO INTERACTIVE SOFTWARE, INC. and SUBSIDIARIES
                                                                                                  CONSOLIDATED STATEMENTS OF CASH FLOWS
                                                                                                             (in thousands)
                                                                                                                       Twelve months ended March 31,
                                                                                                              ---------------------------------------------------------------------------------------------------------------------------
                                                                                                                  2017           2016    
                                                                                                              -------------------- -------- --------------------                      -------------------- -------- --------------------
                                                                                                                                                                                       
Operating activities:
                     Net income (loss)                                                                                           $   67,303                                                              $   (8,302 )
                                                                                                               
                     Adjustments to reconcile net loss to net cash provided by operating
                     activities:
                        Amortization and impairment of software development costs and                                               221,911                                                                 134,472
                        licenses
                        Depreciation and amortization                                                                                30,707                                                                  28,800
                        Amortization and impairment of intellectual property                                                          6,738                                                                     160
                        Stock-based compensation                                                                                     81,879                                                                  69,996
                        Deferred income taxes                                                                                         3,020                                                                    (270 )
                        Amortization of discount on Convertible Notes                                                                21,222                                                                  23,457
                        Amortization of debt issuance costs                                                                           1,227                                                                   1,567
                        Gain on of long-term investments, net                                                                        (1,350 )                                                                (2,683 )
                        Other, net                                                                                                   (3,410 )                                                                 2,588
                     Changes in assets and liabilities:
                        Restricted cash                                                                                             (76,474 )                                                               (91,491 )
                        Accounts receivable                                                                                         (41,956 )                                                                49,348
                        Inventory                                                                                                    (4,942 )                                                                 3,809
                        Software development costs and licenses                                                                    (252,951 )                                                              (219,217 )
                        Prepaid expenses, other current and other non-current assets                                                (22,155 )                                                               (12,272 )
                        Deferred revenue                                                                                            126,285                                                                 152,325
                        Deferred cost of goods sold                                                                                 (14,969 )                                                               (41,144 )
                        Accounts payable, accrued expenses and other liabilities                                 189,344                           170,162  
                     -------------------------------------------------------------------                      -------------------- -------- --------------------                      -------------------- -------- --------------------
                     Net cash provided by operating activities                                                   331,429                           261,305  
                     -------------------------------------------------------------------                      -------------------- -------- --------------------                      -------------------- -------- --------------------
                                                                                                                                                                                       
Investing activities:
                     Change in bank time deposits                                                                                    89,076                                                                (182,383 )
                     Proceeds from available-for-sale securities                                                                    155,936                                                                  43,314
                     Purchases of available-for-sale securities                                                                    (195,733 )                                                              (150,501 )
                     Purchases of commercial paper                                                                                  (25,938 )                                                                     -
                     Business acquisitions, net of cash acquired                                                                   (130,669 )                                                                     -
                     Purchases of fixed assets                                                                                      (21,167 )                                                               (37,280 )
                     Proceeds from sale of long-term investments                                                                      1,350                                                                   2,683
                     Purchase of long-term investments                                                                               (1,885 )                                                                     -
                     Other                                                                                             -                              (349 )
                     -------------------------------------------------------------------                      -------------------- -------- --------------------                      -------------------- -------- --------------------
                     Net cash used in investing activities                                                      (129,030 )                                           (324,516 )
                     -------------------------------------------------------------------                      -------------------- -------- --------------------                      -------------------- -------- --------------------
                                                                                                                                                                                       
Financing activities:
                     Excess tax benefit from stock-based compensation                                                                 1,990                                                                   1,421
                     Tax payment related to net share settlements on restricted stock                                               (51,762 )                                                               (22,916 )
                     awards
                     Repurchase of common stock                                                                        -                           (26,552 )
                     -------------------------------------------------------------------                      -------------------- -------- --------------------                      -------------------- -------- --------------------
                     Net cash used in financing activities                                                       (49,772 )                                            (48,047 )
                     -------------------------------------------------------------------                      -------------------- -------- --------------------                      -------------------- -------- --------------------
                                                                                                                                                                                       
                     Effects of foreign exchange rates on cash and cash equivalents                               (7,973 )                                             (1,120 )
                     -------------------------------------------------------------------                      -------------------- -------- --------------------                      -------------------- -------- --------------------
                                                                                                                                                                                       
                     Net increase (decrease) in cash and cash equivalents                                                           144,654                                                                (112,378 )
                     Cash and cash equivalents, beginning of year                                                798,742                           911,120  
                     -------------------------------------------------------------------                      -------------------- -------- --------------------                      -------------------- -------- --------------------
                     Cash and cash equivalents, end of period                                                                    $  943,396                                           $  798,742  
                     ===================================================================                      ==================== ======== ====================                      ==================== ======== ====================
                                                                                                                                                                                                                     
 
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, 2017                                                                                                                    March 31, 2016
                                                                                 -----------------------------------------------------------------------------                                                --------------------------------------------------------------------------------------
                                                                                                       Amount                                            % of Total                                                                 Amount                                           % of Total
                                                                                 ---------------------------------------------------                     -----------                                          --------------------------------------------------                     ---------------------
                                                                                                                                                                                                                                                                                      
  Net Revenues by Geographic Region
      United States                                                                                 $  296,040                                              52 %                                                                 $ 196,037                                                   52 %
      International                                                                 275,516                           48 %                                                181,169                                48 %
                                                                                 -------------------- -------- --------------------                      ----- ----                                           -------------------- ------- --------------------                      ---------- ---------
Total net revenues                                                                  571,556                          100 %                                                377,206                               100 %
                                                                                 -------------------- -------- --------------------                      ----- ----                                           -------------------- ------- --------------------                      ---------- ---------
                                                                                                                                                                                                                                                                                      
Change in Deferred Net Revenues
      United States                                                                                 $  (56,680 )                                                                                                                 $  (4,159 )
      International                                                                (107,749 )                                                                                                (30,535 )
                                                                                 -------------------- -------- --------------------                                                                           -------------------- ------- --------------------
Total changes in deferred net revenues                                             (164,429 )                                                                                                (34,694 )
                                                                                 -------------------- -------- --------------------                                                                           -------------------- ------- --------------------
                                                                                                                                                                                                                                                                                      
                                                                                                                 Three Months Ended                                                                                                                Three Months Ended
                                                                                                                   March 31, 2017                                                                                                                    March 31, 2016
                                                                                 -----------------------------------------------------------------------------                                                --------------------------------------------------------------------------------------
                                                                                                       Amount                                            % of Total                                                                 Amount                                           % of Total
                                                                                 ---------------------------------------------------                     -----------                                          --------------------------------------------------                     ---------------------
                                                                                                                                                                                                                                                                                      
Net Revenues by Distribution Channel
      Digital online                                                                                $  278,683                                              49 %                                                                 $ 194,798                                                   52 %
      Physical retail and other                                                     292,873                           51 %                                                182,408                                48 %
                                                                                 -------------------- -------- --------------------                      ----- ----                                           -------------------- ------- --------------------                      ---------- ---------
Total net revenues                                                                  571,556                          100 %                                                377,206                               100 %
                                                                                 -------------------- -------- --------------------                      ----- ----                                           -------------------- ------- --------------------                      ---------- ---------
                                                                                                                                                                                                                                                                                      
Change in Deferred Net Revenues
      Digital online                                                                                $   19,802                                                                                                                   $  31,829
      Physical retail and other                                                    (184,231 )                                                                                                (66,523 )
                                                                                 -------------------- -------- --------------------                                                                           -------------------- ------- --------------------
Total changes in deferred net revenues                                             (164,429 )                                                                                                (34,694 )
                                                                                 -------------------- -------- --------------------                                                                           -------------------- ------- --------------------
                                                                                                                                                                                                                                                                                      
                                                                                                                 Three Months Ended                                                                                                                Three Months Ended
                                                                                                                   March 31, 2017                                                                                                                    March 31, 2016
                                                                                 -----------------------------------------------------------------------------                                                --------------------------------------------------------------------------------------
                                                                                                       Amount                                            % of Total                                                                 Amount                                           % of Total
                                                                                 ---------------------------------------------------                     -----------                                          --------------------------------------------------                     ---------------------
Net Revenues by Platform Mix
      Console                                                                                       $  479,958                                              84 %                                                                 $ 288,785                                                   77 %
      PC and other                                                                   91,598                           16 %                                                 88,421                                23 %
                                                                                 -------------------- -------- --------------------                      ----- ----                                           -------------------- ------- --------------------                      ---------- ---------
Total net revenues                                                                  571,556                          100 %                                                377,206                               100 %
                                                                                 -------------------- -------- --------------------                      ----- ----                                           -------------------- ------- --------------------                      ---------- ---------
                                                                                                                                                                                                                                                                                      
Change in Deferred Net Revenues
      Console                                                                                       $ (161,310 )                                                                                                                 $ (30,253 )
      PC and other                                                                   (3,119 )                                                                                                 (4,441 )
                                                                                 -------------------- -------- --------------------                                                                           -------------------- ------- --------------------
Total changes in deferred net revenues                                             (164,429 )                                                                                                (34,694 )
                                                                                 -------------------- -------- --------------------                                                                           -------------------- ------- --------------------
                                                                                                                                                                                                                                                                                      
                                                                                                                                                                      
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, 2017                                                                                                          March 31, 2016
                                                                                 ------------------------------------------------------------------------------                                                --------------------------------------------------------------------
                                                                                                        Amount                                            % of Total                                                       Amount                                  % of Total
                                                                                 ----------------------------------------------------                     -----------                                          -------------------------------                     ---------------------
                                                                                                                                                                                                                                                                    
   Net Revenues by Geographic Region
      United States                                                                                 $   999,128                                              56 %                                                                 $   742,963                              53 %
      International                                                                  780,620                           44 %                                                  670,735                              47 %
                                                                                 -------------------- --------- --------------------                      ----- ----                                           -------------------- ---------                      ---------- ---------
Total net revenues                                                                 1,779,748                          100 %                                                1,413,698                             100 %
                                                                                 -------------------- --------- --------------------                      ----- ----                                           -------------------- ---------                      ---------- ---------
                                                                                                                                                                                                                                                                    
Change in Deferred Net Revenues
      United States                                                                                 $    78,356                                                                                                                   $    97,770
      International                                                                   45,842                                                                                  49,158
                                                                                 -------------------- --------- --------------------                                                                           -------------------- ---------
Total changes in deferred net revenues                                               124,198                                                                                 146,928
                                                                                 -------------------- --------- --------------------                                                                           -------------------- ---------
                                                                                                                                                                                                                                                                    
                                                                                                                  Twelve Months Ended                                                                                  Twelve Months Ended
                                                                                                                    March 31, 2017                                                                                                          March 31, 2016
                                                                                 ------------------------------------------------------------------------------                           -------------------- --------------------------------------------------------------------
                                                                                                        Amount                                            % of Total                                                       Amount                                  % of Total
                                                                                 ----------------------------------------------------                     -----------                                          -------------------------------                     ---------------------
                                                                                                                                                                                                                                                                    
Net Revenues by Distribution Channel
      Digital online                                                                                $   921,734                                              52 %                                                                 $   697,658                              49 %
      Physical retail and other                                                      858,014                           48 %                                                  716,040                              51 %
                                                                                 -------------------- --------- --------------------                      ----- ----                                           -------------------- ---------                      ---------- ---------
Total net revenues                                                                 1,779,748                          100 %                                                1,413,698                             100 %
                                                                                 -------------------- --------- --------------------                      ----- ----                                           -------------------- ---------                      ---------- ---------
                                                                                                                                                                                                                                                                    
Change in Deferred Net Revenues
      Digital online                                                                                $   159,528                                                                                                                   $   137,563
      Physical retail and other                                                      (35,330 )                                                                                                    9,365
                                                                                 -------------------- --------- --------------------                                                                           -------------------- ---------
Total changes in deferred net revenues                                               124,198                                                                                 146,928
                                                                                 -------------------- --------- --------------------                                                                           -------------------- ---------
                                                                                                                                                                                                                                                                    
                                                                                                                  Twelve Months Ended                                                                                  Twelve Months Ended
                                                                                                                    March 31, 2017                                                                                                          March 31, 2016
                                                                                 ------------------------------------------------------------------------------                           -------------------- --------------------------------------------------------------------
                                                                                                        Amount                                            % of Total                                                       Amount                                  % of Total
                                                                                 ----------------------------------------------------                     -----------                                          -------------------------------                     ---------------------
Net Revenues by Platform Mix
      Console                                                                                       $ 1,440,724                                              81 %                                                                 $ 1,167,623                              83 %
      PC and other                                                                   339,024                           19 %                                                  246,075                              17 %
                                                                                 -------------------- --------- --------------------                      ----- ----                                           -------------------- ---------                      ---------- ---------
Total net revenues                                                                 1,779,748                          100 %                                                1,413,698                             100 %
                                                                                 -------------------- --------- --------------------                      ----- ----                                           -------------------- ---------                      ---------- ---------
                                                                                                                                                                                                                                                                    
Change in Deferred Net Revenues
      Console                                                                                       $   113,595                                                                                                                   $    12,687
      PC and other                                                                    10,603                                                                                 134,241
                                                                                 -------------------- --------- --------------------                                                                           -------------------- ---------
Total changes in deferred net revenues                                               124,198                                                                                 146,928
                                                                                 -------------------- --------- --------------------                                                                           -------------------- ---------

http://cts.businesswire.com/ct/CT?id=bwnews&sty=20170523005265r1&sid=cmtx6&distro=nx&

View source version on businesswire.com: http://www.businesswire.com/news/home/20170523005265/en/

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 
Corporate Communications & Public Affairs 
Alan.Lewis@take2games.com


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