Take-Two Interactive Software Inc on Monday reiterated its annual adjusted revenue forecast, as last year’s gaming boom cooled off with easing pandemic restrictions encouraging people to step out more.
Shares of the New York-based company, which gained nearly 70% last year, fell 4% in extended trading.
The company forecast full-year adjusted sales between $3.2 billion and $3.3 billion. Analysts expected $3.47 billion, according to Refinitiv IBES data.
“We are reiterating our outlook, as there has been some movement in our release schedule, including two of our immersive core titles shifting to later in fiscal 2022 than contemplated by our prior guidance,” it said.
Companies like Take-Two, Electronic Arts and Activision Blizzard benefited from lockdowns keeping gamers glued to their consoles last year, but those gains have started to taper off.
Total consumer spending on video gaming in the United States rose only 2% to $14 billion in the second quarter, compared with the previous quarter’s 30% jump year-over-year, according to data from analytics firm NPD.
On an adjusted basis, the game publisher’s revenue in the quarter stood at $711.4 million, beating analysts’ average estimate of $687.6 million, according to IBES data from Refinitiv.
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