- Take-Two’s net revenue grew 10% to US$839.4 million in Q1.
- Take-Two acquired the successful games developer HB Studios Multimedia.
- Activision Blizzard’s GAAP net revenue was US$2.28 billion in Q1 of 2021.
After seeing rapid growth during the pandemic, gaming companies appear to be constantly upgrading themselves to remain competitive in the marketplace. Lockdown has come as a blessing in disguise for some companies, especially those engaged in the digital space.
Video game makers Take-Two Interactive Software (NASDAQ: TTWO) and Activision Blizzard (NASDAQ: ATVI) saw considerable revenue growth in the first quarter ended March 2021.
Let’s delve deeper into these two stocks.
Take-Two Interactive Software (NASDAQ: TTWO)
Take-Two develops, and markets interactive entertainment games for consumers across the globe. Its main product publishers include Social Point and Rockstar Games.
The games can be played on all mediums including consoles and computers. The products are sold through online platforms, physical retail stores, and cloud services.
Take-Two’s net revenue grew 10% to US$839.4 million in Q1 of 2021, against US$760.5 million in the year-ago quarter. Net income grew by 78% to US$218.8 million during the period. The market capitalization of Take-Two Interactive Software is around US$21.322 billion.
The company recently released free updates for the popular video game Grand Theft Auto Online, including casino storey missions, and new stunt races.
Also Read: Why Is AMC Entertainment Stock Trending?
Take-Two has purchased the Austin-based video game company HookBang.
HookBang will now become part of Take-Two’s Visual Concepts.
Take-Two also acquired the successful games developer HB Studios Multimedia.
HB Studios has created commercially successful games like PGA TOUR 2K21.
Take-Two stock was priced US$184.36 at the market close on Friday, May 21, an increase of 0.39% from the previous session. The stock rose 41% in the last 12 months.
Activision Blizzard (NASDAQ: ATVI)
Activision is one of the world’s leading producers of interactive video games. The company reaches out to its customers globally through epic entertainment. It operates in 15 countries, mainly in the US, Canada, the UK, France, Brazil, Mexico, and Germany.
Activision’s market cap is US$74.104 million.
Its Q1 operating cash flow was US$844 million, against US$148 million in the year-ago period.
GAAP net revenue was US$2.28 billion against US$1.79 billion in Q1 of 2020.
Net revenue from digital channels was US$2.01 billion, and GAAP operating margin was 35%. Earnings per diluted share rose from US$0.65 to US$0.79 YoY.
The stock closed at US$95.37 on Friday, May 21, an increase of 1.24% from the previous close. The stock surged 36% in one year.
On March 29, 2021, Activision appointed Armin Zerza as the new chief financial officer. Mr. Zerza had earlier served as the COO of Blizzard Entertainment.