TTWO - Earnings call transcript Q3 2019 | Take-Two Interactive Software, Inc.

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Operator

Greetings, and welcome to the Take-Two Interactive Software Third Quarter Fiscal Year '19 Earnings Call. At this time, all participants are in a listen-only mode. A brief question-and-answer session will follow the formal presentation. [Operator Instructions] As a reminder, this conference is being recorded. I would now like to turn the conference over to Hank Diamond, Senior Vice President of IR and Corporate Communications. Mr. ahead go Please Diamond.

Hank Diamond

will and our its for quarter results ended Chief Executive Today's year Welcome Take-Two's Officer. Strauss call and Financial and Chairman of Take-Two's Lainie to XXXX Chief call XXXX. XXst, discuss for Karl December led thank afternoon. by joining Zelnick, Slatoff, you Officer; conference fiscal be President; Good the our third Goldstein,

remarks. during be the your Q&A available our following will We questions prepared to session answer

everyone that considered we made I'd federal available begin, of to remind as as not are are Before call our this facts securities statements well currently are to beliefs assumptions forward-looking statements us. that on forward-looking like during under the made based management information laws. by historical These statements and

XX-K, these are Actual variety to filings in results statements We operating vary these factors obligation discussing all a with Form based SEC recent stated, summarized Form Factors. XX-Q, Risk entitled to report and GAAP, are significantly will the on also have on important described no year-over-year. risks forward-looking like These section the statements. we be company's from numbers most forward-looking including that, I'd unless in all note comparisons annual our including otherwise report the factors. are today and the quarterly update on of may

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Strauss Zelnick

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Karl Slatoff

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Lainie Goldstein

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Strauss Zelnick

management to behalf I I'd colleagues Karl. thank for for another Lainie to To like Thanks, delivering our continued our our of their work express entire support. your On appreciation want team, hard quarter. in and shareholders, our successful

take We questions. will now Operator? your

Operator

Instructions] Thank you. Thank you. [Operator

Our line first is proceed with of the question. from question coming Ryan Gee with your Barclays. Please

Ryan Gee

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Lainie Goldstein

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Operator

Thank you.

next question proceed O'Shea the with line question. of Jefferies. Tim with your comes from Our Please

Tim O'Shea

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to Just thoughts -- your you. updated get Thank hear an love that. updated on

Strauss Zelnick

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Operator

of Sachs. questions. Please question Ng line with next from is The your proceed with the Michael Goldman

Michael Ng

have for I Strauss, Karl one one questions, three for one and for Lainie.

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Karl Slatoff

take This the first question. is I'll Karl.

attract to it's our something talent do we've Condrey to now Michael part the of and So been best really it obviously important the industry. able we strategy. to that best pattern date, for develop board are and trying bring the to by our follows and retain us. excited And content, on very very And That's in accident. that's of

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Strauss Zelnick

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Lainie Goldstein

for Online, content into Red previously, recurrent new to And expect first we QX we spending, consumer look Dead releases the I the quarter. their accelerate as mentioned

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Operator

comes with question. question Justin line Lynch. proceed of with from next Post The your the Please Merrill

Justin Post

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Strauss Zelnick

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Operator

your Brandon Please the line of with with BTIG. Ross from comes question Next question. proceed

Brandon Ross

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Strauss Zelnick

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Brandon Ross

bigger focus affect lately, look question. Amazon, you they How And And like to Microsoft game giants creators will their that expect then, the Okay. expect just seen content tech industry from yourself? and from a you do focus streaming We've publishers some picture more do lot to and subscription. on video obviously, Thanks. Google, acquire content?

Strauss Zelnick

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take providing here a guess you I lot our we increase home. that believe look durable? games able So computer, have like I'm audience that she's us. have if and customer that to durable. York, ultimately Everyone the who Lainie a are to is someone have are appeal you're to automatically who be us very to believe has together to New That of But an other interact to video internet How available play believe on to scale of of that, a few Google in have internet games, it you all that brought that that? a I it market that is those distribution, have be together you or we have Is be wish such can play will customer on can model provider able in around Well, has data of it'll currently, position. sitting games, gaming if deliver But my experience. that, look size at has get accordingly. want access that, if like for it's observe access I'm video be the can. London There business Microsoft and reducing to centers sense making has a streaming. for model a provides the those and need My would remains be cable to I I the Amazon to many iPad, you good cable. streamed people have you our become if in durable, products. and you with we to Facebook a to streaming play thing that, anytime broad I What same? by who going the here Technically, you player going without not the in sure streaming. hyper order it. world. actually experience? I to is in a Dell has Who it not gives will a quality could to over will companies has

Operator

Ray next of Edge proceed The with Research. your from question. line is the Consumer Stochel question Please with

Ray Stochel

Red not on is Dead to think for to content then more related we and to of about should the Red overall overall, commentary on any Online was And trying or shift your I'm how look content about to bit year-over-year a And if we as drops expectations be this Online. It expectations? your for it actually Doomsday opinion to drop commentary related a little your Dead whether related would any GTA that more a tracking? how drop possible content take overall, recent The think or in like if bit I when Online, And would little the your bookings but whether less content, seems or versus at worse or Thanks. better Heist. love in end. meant then a smaller it's

Strauss Zelnick

So early days of great. it's Dead Online, going Red all, first --

enhanced what drops. for in days. early about however, driven It is feel are content expectations terrific XXXX will it. by Our We happen

had with doing, our terms it's performing how line with years the The in in expectations. pleasantly It GTA the however, surprised surprised pleasantly is, years of year only Online expectations. in continues We're is GTA incredibly and well. we because as In this prior so upside. still we’ve we've to accordance were Online with moderating expectations, our perform title versus different prior moderated

for least the I well at expected. So as of Online the than and going recent are good in case content better in GTA most going would as say instances drops expected most certainly things as

Operator

you. Thank

next with comes of the Stanley. from question. Morgan Nowak question with Brian your proceed line Please Our

Brian Nowak

I have two.

Rockstar pipeline shareholders a the understand there's just fully lot really the sort given to Strauss, was you of have. number think titles the broader years even coming a trying shift. And and just, I the Just investors out you from the the overall that you of the next the of sort Lainie, of ask of potential the of pipeline the few that out of of a and about I about content of to think see increase, picture increase to you of questions and booking how question, kind headcount then perspective? curious how breadth of put company maybe sort cadence

how moving about think right RCS way plus around shift? the there XX% Dead the is there implied you of as the Or I So previously any that Thanks. shift? other size before the to mentioned announced than XX, Red are pieces growth know other

Karl Slatoff

Karl. Brian, Hey, it's

focused are we I our of see -- terms you look, our releases. pipeline company In and And of think on highly efforts. the increasing our

new forward robust us we've near lot got also pipeline a bring private First of with term. And opportunity all, and of Social going releases of new the a in spend acquisition their Point lot we to brings division first about, talking there's the see by term going talked releases come studio a Condrey. to led you’re which time in coming But couple Michael out near future. the as more about to of We well.

on from the us. always focused bringing from one to our objective in And been is that's out titles going an to we've going over way. more day are of highly that and -- you're bring Social every But just opportunity the that into example that. projects for Point from on mix So also a M&A title titles there's to look, perspective, of - stated project-based come And time, focused a in the And going we something and is release you're higher that's to because one. There’s ours. new next not as obviously, again, well -- and see months. on focused we're cadence XX

Lainie Goldstein

QX by they of out for talked also it And offset Redemption MBA were so from in were shifted So there QX. that that QX, Red was Dead we units about higher X expectation.

So in that's It's change items, by overall driven the QX. primarily. those

Operator

of the your question next comes from with MKM line question. The with Handler Eric proceed you. Thank Partners. Please

Eric Handler

of about I Lainie. your for is third Yes, the margin guidance XX%. In thanks want for taking sort the my something bit It's gross here. implied around little talk quarter, a question. to

in in much You the or a that willing curious, bit Redemption profit are the you of coming as the remains? sold gross XXX goods far anything amortization below about there as how to basis in a of points. And below cost in expectations? in the came Dead I'm Was margin X, that Red resulted little -- amortization by that say of

Lainie Goldstein

development And driven we higher royalties. business new in associated and costs expected. they with more interval So the of by have margin the releases and really higher mix it and towards was the it's had also in it weighted terms QX,

don't what see for full oh, what Dead? -- by overall the is multiyear title well. gross in is but Red of On share basis, the And that -- second our amortization the margin. the in sales for was a the that difference period. the So as And sorry, title We line question? with are year we the then a amortizing over on that should your expectations

Eric Handler

a And quick then, just follow-up.

of last plans no your could as how any as it of with entered during marketing and I'm some terms curious year this through deal season? just eSports are far games tell. there all evolving was the In presence I first its when for at the season NBA, NBA

Strauss Zelnick

of a very that we're Karl great we first we, was that when results more and day We're around develop. sort of for continue news exciting have draft. And and second teams. season the a mentioned It's we the early stay promotional on going the all four tuned as kinds We're got well. more season into fact opportunities opportunities heading thing. heading work-in-progress a to into to

Operator

with Group. The next question. question is your from the line of Schachter Ben with Macquarie Please proceed

Ben Schachter

questions these more below video And few question, the even see A to China? to you China, games can the meaningful brought are buybacks $XXX, way Second in first, -- to in Trump how games stocks and then should been you impact you the have expect you positive just we is in in any the related video impacting how finally, administration an with on industry talks you you Thanks. of do I stock back think trading bought on yourself? could. XXX, And if about market Strauss, you have past? Fortnite that at issues trade a could highlight think the

Strauss Zelnick

competition. continue consuming before. fact from competitive asked results was is that in the titles. despite titles including There We Fortnite, this to get our of In it. terms in them about I've point plenty have away of are stellar market take We other from people engaged entertainment just of I activities competition been there observed also and we other Fortnite. that the every

It's negatively for just entertainment our influenced the the works. results is marketplaces. no are results that the they're there or a another not I by than way comparison minute title being in great our to titles. when one-for-one So less don't believe great positively or they're when

television So way business works, the it's it's the the music business or works business not the the it not business. was movie the or way software --

for So if will you up people it. have something show great

of and they're had have Theft Grand Theft just last don't results to examples, was Grand to If fiscal it. record Fortnite up for Online, by look And going you wave at booming. for record We've the not great, results year, Auto we just for anything show Auto.

a So quarter. just plenty there's in had for room the third We of marketplace. stellar fits

continues X, our Dead our Fortnite perform. to results rest amazing And we these have lineup XKXX, with Red NBA and and Redemption of the catalog.

think if certainly I it, that's multiplicity say, audience. audience, from bigger a And you there that case. it's perhaps to a crossover. any springs see diverse We almost thing good don't would when I you a in the think is step So back want more

is And quality. proud very on we really which our the competition, our pipeline a that -- been On So we're of China, because why quality disappointments an of. long we're what every concerned not increasing they've can we titles we're development, focused in had We've recent frankly, Asia about quite utterly for think very any, our we're our is time. are increasing we're Karl do about releases few think concerned very of day, opportunity. we as good enormous said, if I and

cautiously look China's optimistic export care property, We is under been is actually government on opportunity. do result new great second at that aerospace, we trade, as there's that gratified I which approvals the new others re-launched fact are We're a of opportunity engaging think as biggest intellectual taking method. $X.XX and our feel great And focused after game Specifically, developing platforms. distribution have America's that is important. a in a

think things. the I important it's of on list

So see some to there. think you'll begin progress I

right But for a to have we a in be opportunity. within understand the we environment opportunity an that in and soften, wonderful even China. absolutely there'd now, work there. find I us There's So regulation think ourselves wonderful opportunity there's if greater we

That organic. when made today years that a today. we're to growth growth our is uses here. Point. our apples-to-apples Finally, around that's very primarily on billion call that few here, great we three the with of revenue, would net has have million XX And did knocking story. we we've story. we it $XXX for up buy we organic We regard is had cash bookings studios. showed of But and all We what supporting story clear and to going been organic net acquired but almost net, door be a ago our $X Social that buybacks,

So growth we want measured to support organic risk. and support

no have was it in sense. disciplined. if you well concerned conditions the we've paid and off, there there. Social and I'll only against is leave we're so in those is that's our we which And then have you opportunity there's measured with us. pursue do cash be risks is known, when balance the about, words. accretive more which in debt when these capital accretive inorganic see to also very all to in we And And value have think which have our And growth. now, right ago, we're buybacks probably the but far an interested months that we're billion marketplace. interested And transactions facing acted That's backs returning finally, to was flow makes and right exciting, needs plenty like $X.X an we're We potentially nothing we certainly, given said, and market get value seen shareholders cash really have Point, of it when all say now transaction. opportunities I buy and to front when deep about amazing philosophy marketplace, us six said that of My probably it in opportunity deep we

Operator

you. Thank

of from proceed question with question. Jaffray. the Mike next line Olson your Piper comes Please with Our

Mike Olson

approach content is some really that getting willing to new now high significant the idea the a the really industry been ceiling content. shift recent then to getting Without content to Red somewhat spend that I of know And can’t an about in-game in are for in maintain resources concept, for kind in-game spend being growth the is in content closer what guessing GTA, of to guess, content that specifics gamers opportunity agree just I'm on interested share, and in off. saturated wondering, take and level, engagement of with very towards the for but low-hanging it. more we years of thinking, your increasing was you maybe line of into should perhaps that wouldn't title? Red a Dead? fruit, is be just expect Thanks. you to order I focus each staggered And kind which new releases, there's primarily the Or just chatter Dead

Strauss Zelnick

So put relationship that Online, virtually Red in everything wouldn't be for terms our content any frankly other there for and because titles. have we of the see will we that to content drop organization drops opportunities Online, out. between title one GTA for or with other post-release engage we Dead No, any inside for titles,

in-game do grow of They're deliver. a in-game think what feeling about think, getting always really I attention more never value. everyone seeing ever I you paying And is think stand to of leave regard the and want they're -- free-to-play consumer attention any its and you're what And I you great. And captivate one optimize do to always experience alone. kind I they no, consumers engage you which position we're to be we're spending. pay think that speaks they're consumers So, in charging cap. base. that don't to for to that to to to to than a and to want talking what base every trying With for spending, title spending, each and own customer games. what

you great charged if it. feel So, even you a But you have you were for experience. anecdotally, too much know really

even experience, good. was thing emotional the not is if good Your itself overall,

It leave the overcharged. meal like you like you but were restaurant. you had doesn't great restaurant, meal, to going when feel feel you a You're great a

we upside to want to content. And them. then taking data-driven feel our We're into our deliver we're folks great our But than we we and that say for focused want experiences, encourage that on properties fact, people think trying that business, anything We're business, creative to on of of show respectful they make in to passionate we're them always require utterly to to an consumers And that in And But our about. not experience. doing order be totally be best we're down. the means of build the we our have the those. up we most that. to And in pursue earth we to to back what creative creative it. company that best result, trying I will customers. entertainment the maximize on competitors them, their more revenue. deliver have do We're certain what we care earth. We delivering And even our So than we charge entertainment gotten trying they a And as company. believe have and we consumers and and like have think on and always passion incredible sure more teams the that work understand pay they're have recharge. not we a

that, remember the I you of growing. room. cohorts think And do there's plenty if

have is on spend on even is seeing consumer get to will what individual do more experiences the not we're happening. any great any which way, and them. pushback create involved, there's by experience, So and encourage a much Then you particular how to consumers if

Operator

the Juenger proceed Todd Please from your question. next with Bernstein. of question Our Sanford with is line

Todd Juenger

I it pricing. rather that, don't Strauss, mean it one hope I'm even in to you that value you and at Red further. that probably really your one loving point, products or conversations call, I I Redemption, Rockstar that at you what value. said Games the in the price some mind level just point the commented for doesn't if a select believe some things, this on when charge if you about keep of expensive though. and you the good. doesn't, feel Dead fantastic And price properties is a matter could, At the $XX that's talk I you've one instance, premier consumers

players great elasticity lots have value. have when -- thought about it. lot to you because think many I pricing pay are it players have is just thought about So would we willing as bunch forward, suppose is sort as not were how is. that go wonder challenge people that a the Dead about the you be if end on of would think revenue upfront amounts really twice out might let three, a Redemption me I a If great how you you US$XXX what to fold? and thought right? we find more what And really dynamism wonder of and why relationship you too, Red other with Thanks $XX lot. of a $XX? U.S. it could But I

Strauss Zelnick

-- the the tricky. really was movie when I the was in price in question same I so, there's think, asked discrimination The question I same -- entertainment Yes, is business.

I'm Home how all out you Alone aging X -- did. true. putting myself, You're but Alone X Home it's knew And

or Metacritic game why and in The quality. how of tend businesses. know So have much charge are point because is reviews, same path They to don't pay the expectations more their at course, consumers really price more it's business the than answer to for scores And you Box Office? video entertainment in to expect see frontline that so not typically it's getting entertainment. high they of some any they're other the what and

includes, you're you have to pricing that second demand. that a you the said. has On And without any within very we a develop, the even we're great resonates to want because point, especially feel where range properties but you're So question regard never advantage model taking of that them. in of kind lot as be of a there's that knowledge to pursue consumer don't it as success, to going you be your though seems difficult when if your about to front-line

prospectively, pays. Because games, for create retroactively. monetization an spent And are in to all of exceedingly experience. the works free-to-play So your are at audience and where work a they enormous the as yet went you money model XX% could position terrible under prospectively. low doesn't be levels frontline great the you It typically

charge people and is which additional door them will content, that. the higher with in along participate amount of content, want that form or And of for over find threshold for the middle offering an a to you to you for we takes, don't who course, then it price. your give time, and think the as whatever frontline choose there's product a people add-on have path, And initially who online the reasonable people low well. make phenomenal to typically discounting the quality frictions that to continue get reduce downloadable want to to at So a

case the Grand in high Although pies frontline our of a very Auto, very maintained course, time. a long of for Theft retailers

between. path So we to answer I find guess a is, the in have

Operator

of Company. The line Please next Hickey proceed question. from is question with your the Mike Benchmark with

Mike Hickey

with Gearbox. is? Just and a two disruption timeline share of stable internally, impacting is the It amount this with if studio from X. could How for development us there's looks your that like Curious if you Borderlands relationship you feel me. fair

know second been It game it's is? question, The sounds what guess unannounced the why lingering it's what delayed don't your on I on XK it title, is? track. like already once. on this Thanks. I mystery

Strauss Zelnick

they're excellent. a And with them doing an The relationship phenomenal external is as company which support studio, stable. job is is we do, and always they Gearbox, Our greatly.

that In on much expectations. it the terms very very track stay Xk of And high we and have on we title, expect is to unannounced track.

Operator

Please your question proceed with from of is Andrew next the Oppenheimer. Uerkwitz line question. The with

Andrew Uerkwitz

a on question, missed quick maybe I real it. Just modeling

one was up. Could know big there us follow to revenue recurring I you forward let much as mentioned You pull that RDR. related some was? And how have approximately picture

Lainie Goldstein

We that don't a of basis. level detail on share title-by-title

So that today. with I can’t you answer

Andrew Uerkwitz

you. trends I some a that couple now the a Private like years -- is the think to that you're year you with you Division? industry launched a content? build original really And games No, of third-party Mr what couple no, of fair you're two about made What that a aside of finding Division. -- Private ago out, just questions we're around some want you from doing as enough. studio Thank what And how Private Division with building identified of had on were follow-up, then, Condrey Strauss, what do doing this a getting studios versus were focus

Karl Slatoff

Andrew, Karl. Hey it's

we the the we've to long see that past. in in flows actually that of they have idea approach and ebbs creative got And Private not the we when the in the things been have real years, the necessarily talent also last that work few budget send of as we not terms with have around before. and time different try these bigger look, So people the have necessarily the that's creative of are and are up of studios Division, behind enterprises. that other Private folks terms credibility of out done independent with AAA for industry to had in want most we've acquired obviously, a had And in seen we've an there as Division, titles -- than on industry world. and sort increase. associated amount And within just And

that it both them believe it something to works has out, -- Do right. way few we past I shortage probably Division. the pipeline is is an passion. talent And find in the that for for number where want just XX% incredible. home that of inbound is talent. based to key this this said these we that work pursue once like one were can at is And flexibility really the folks And the And those endeavors. titles talent pride we grow within to saw actually -- And we of believe. mean, to is to it be there place new And be no more a we absolutely have has they It's -- for two and interest a the in passion. availability this of ingredient there's turns So a for the we to or said of to really And We could And there Private to than creative we as that a that and born once looked model of on pursue home can that -- them business I bigger they opportunity. earlier, believe us? path.And ourselves there been the a is allow out because us. and over work for we've do really is business idea model be themselves? be years. of we was much this staggering out it there here

[Audio So Gap]

Operator

next is question Our from Crum Drew Stifel. with

Drew Crum

outside are your NBA if then the view with the about NBA could wonder the sales for the game given in can led the interest update. XK separately for improved license? the changed seven performance I So renewal talk last for talk an Thanks. And about for your implications What to U.S.? relative uptick seeing you margin year has gross Lainie, you

Operator

Difficulty] [Technical

Operator

continue. Please

Strauss Zelnick

Sorry.

had here. lost a continue think there have the left are We other questions to any with be And you. the anyone's technical we'll I may If we in apologies. lapse. line, people if happy

Operator

you. Thank

Buckingham next Research. Our Harrigan questionnaire is Matthew with

Matthew Harrigan

any one. that this even you genre? your your be? all Strauss, far trying you diverges have unbelievably of take on not. that's how sort it's brought it's on can an sort to get IP you you action know that I'd new Bandersnatch monetize rights suspect little if I thoughts I business afield. a the embark is to all But know difficult at the have wonder of I laboratory entertainment background. side, in-house, those and you, I curious pertinent to the reaction of your be enviably have for how to on Do But on entertainment don't the you interactive can what's And better adaptations movie

Strauss Zelnick

good all -- questions. So

sold, that have We franchises X more one are X million units at have property, this that - we like releases than something least have with XX units. XX at intellectual least million very wonderful sold release,

media. I that have And noted think array not correctly terrific properties. those we you've of in a have we So exploited other

far sufficient opportunities. those think What control and have it IP, we're use been in which And utterly if it's -- financial necessarily IP end and have is every issue have we'd make and is television to And is our has motion great make a not so that do, operate. with in have and creative we appropriate to economic I the in to they a on of based the to constraints picture be businesses. participation have found medium licensing on going others you're you time. different of something lot phenomenal great that show to the you control. creative our And challenging very to

us also seemed business be focus in core to it very properly. on also very, difficult it's business. and our core creatively And proved to to We intellectual we well note, -- take very our do just I'd

entertainment entertainment. done of us so examples gives interactive as stripped well. successfully driven that property There aren't that being agreement have pause to linear many and We by

engagement your you could bit been there television, in it adventure you of of choose of the the terms of little less likely like consumers But maintain outcome there. In sort to concern that the something I've more suspension friction be is to because that is linear always disbelief. skeptical applied a can it, my have a

I of find a think, novelty pursue more I often out the unexpected. would of open-minded, the that's novelty on but and there performer, probably point creatively I you've list. And be call something that's camp we'll at there's biggest whole to hits note creators. passions most interesting the if or if that it's are got the your that long is their

So I'd be open-minded.

Operator

with question your Please from Evan Our of with question. the Wingren proceed line next comes KeyBanc.

Evan Wingren

and quarter. skew a This holiday one. one during is consumer Red the for Lainie, premium Dead associated Redemption recurrent spending On quick the X the with units just

would about a the the question be go difficulties, don't just about helpful. that question and Just the margins spending was could us if as wondering specific exceeding during consumer forward Drew but get of your flavor for And think -- second, some a technical much to I that recognizing about your how asked Crum asked implications recurrent sense question. give Drew, NBA to commentary, contributor the expectations a -- relationship really

address too. that would you hoping I'm you. Thank So

Lainie Goldstein

recurrent of quarter. sold quarter, was or of were of during why allocated about units additions overachieved was So the the -- portion XX% some all the that to open XX% during on during about the of open spending large content that additional we special QX, discussion customer the of additions and the

Strauss Zelnick

Association. incredibly relationship of title NBA the over delivering We're of relationship years proud have believe the we're over a our terms And past thrilled be in grateful again. and in to forward achieved Players in long-term and with the us the we Players the with over for NBA, we're the industry-leading trust what Association. in and And and going their

way. our under terms deal, new the will expect do expectations in kind any of our That's terms well. margins to be do reason of to will for the the room In best that there's be everyone see of not deal. And of our margins changed that maintained. we a believe We plenty negative

Operator

The of Please next question comes with Markets. from the Capital BMO Gerrick line your Johnson with proceed questions.

Gerrick Johnson

like And What you the you. that? Private Division. do potential your like what's thanks and between companies economic out in upside you Division for of roles But Obsidian? the the us relationship Private commentary -- and get Thank remind can on Take-Two from games

Strauss Zelnick

can't publishing the all I the they work share. the won't the And of the expensive et cetera. and typically that into generally a -- get But long-term of with but specifics developments all have those the get of ownership kind situations we fund these specific cetera, -- marketing what those of where studios of but profit share we -- into is to is IP, will we profit and generally once that are that economics, et there's speaking, and with, -- the that titles. recouped, I actually independent IP, how rights maintain --

Operator

Doug next proceed Company. line The Please and question of with is questions. your Creutz from the with Cowen

Doug Creutz

exclusively your Store. upcoming have made are to the decision What competitors battle launch Epic do a PC to in the

off trade having you as there the do how wondering you. Just economics of distribution the potentially content possible? importance better Thank the your as versus of many platforms

Karl Slatoff

consumer our and speaking, was wouldn't be we a not want for we think relationships. in is example, approach they widely. direct-to-consumer. been is And generally question speaking, exclusive our distribute consumers where place titles. have any shop very shouldn't I raised on company been a of Well, experience that And we the believer has the wherever comment Generally to multiplicity particular store. But I about exclusively a a as get be to in give

titles from labels. We our of all coming have terrific

are enterprise want. people through very a to have coming broad take that other titles the -- We offering. But there besides titles

that to one be have in times exclusive distribution on of on we're a the our do. be someone when an sense. speaking, can relationship into competitors I else balance, table. our broadly to distributed. business. to And, are position strategy FX But generally comment make happy wouldn't chose We're happy is So at to going There

Operator

Thank you. At turn closing this floor remarks. management the for time, back will I to

Strauss Zelnick

outlook few First reported and just minutes Look, that for bookings provided the never sure incredibly of by is all excited and there that very again. our strong. to outlook you proud I adjusted for year apologize fact we're says that the a all, a we're that we of on. happens going the we're and lost on have we net operations. We cylinders feel make record for we flow like We're firing quarter cash

so for your it’s I joining a thank you So call. we today. long know Thanks for much us support.

Operator

conference Today’s concluded. has

your You participation. disconnect at this you Thank your now lines may for time.

Take-Two Interactive Software (TTWO) 6 Feb 192019 Q3 Earnings call transcript