Investing.com — Take-Two Interactive Software shares gained around 1.5% in premarket trading Monday following results from a Piper Sandler survey showing strong demand for the upcoming Grand Theft Auto 6 release.
The survey of approximately 9,000 teenagers revealed that 70% of newest generation console owners plan to purchase GTA 6, with 55% planning to buy immediately and 15% waiting a few months. Among teens planning to purchase the game, roughly 90% intend to play GTA Online.
The survey results suggest a payer rate of approximately 44% for GTA Online, which Piper Sandler noted is significantly higher than comparable platforms.
However, the firm’s analysis indicated that around 21% of active consoles exist in the same household, which could reduce the overall addressable market.
“We would not expect these respondents would be likely to purchase 2 game copies, which would require placing a discount on total active consoles. While we expected overlap, this was a bit higher than our base assumption,” analysts said.
For Take-Two’s upcoming earnings report, Piper Sandler models total bookings of $1.64 billion, down 16% YoY, and adjusted EBITDA of $123 million.
The firm’s bookings estimate includes total recurrent consumer spend of $1.36 billion, declining 5% YoY, with mobile bookings of $751 million, down 8% YoY. Unit sales are projected at $279 million.
Analysts expect positive commentary from management regarding GTA 6 demand but noted that Take-Two historically does not make material changes to full-year guidance based on pre-order demand for major releases.
Piper Sandler added that weaker third-party data on mobile and NBA 2K could provide management reason to lower guidance.
Original Article
Take-Two stock rises on strong GTA 6 demand in teen survey
U.S. stock futures rebound as Apple earnings eyed; mid-terms in focus
HSBC cuts Beiersdorf on slowing Nivea sales, limited margin upside