Douglas Creutz

Doug Creutz requested an update on Jackpot Tour's status, specifically if significant marketing dollars are planned for Q1 and the first half, and how the game factors into the company's guidance.

Answer

Robert Antokol, Co-founder and CEO, stated that Jackpot Tour's KPIs are still under review, and strong marketing in the coming weeks is not yet 100% confirmed. He also highlighted that Slotomania is expected to grow quarter-over-quarter this quarter, marking significant news for the social casino industry.

Doug Creutz requested an update on the status of Jackpot Tour, including Playtika's marketing investment plans for Q1 and the first half of the year, and how the game factors into the overall guidance.

Answer

Co-founder and CEO Robert Antokol indicated that Playtika is still evaluating Jackpot Tour's KPIs and is not yet committed to a strong marketing launch in the immediate future. He also highlighted that Slotomania is projected to achieve quarter-over-quarter growth this quarter, marking a significant development for the social casino segment.

Douglas Creutz of TD Cowen questioned how Playtika plans to balance increased marketing investment for the promising new title, Disney Solitaire, with the company's guidance for sequentially declining marketing expenses throughout the year.

Answer

Craig Abrahams, President and Chief Financial Officer, responded that while the company is excited about the new franchise, the first quarter typically sees the highest marketing spend. He emphasized that Playtika has a large portfolio and will continue to allocate capital towards games with the best return on investment, implying a strategic reallocation rather than a net increase in overall spend.

Doug Creutz inquired about Corsair's forward visibility into the semiconductor shortage situation, specifically whether they anticipate improvements or worsening conditions and how far in advance they would know about changes.

Answer

CEO Thi La stated that Corsair receives similar market intelligence as others, indicating the market is expected to remain tight for the next couple of years. He emphasized that Corsair does not solely rely on semiconductor output but employs various methods to acquire and produce inventory, operating based on market intelligence spanning a couple of quarters, a strategy that has been effective for 30 years.

Doug Creutz from TD Cowen asked about Corsair's forward visibility into the semiconductor shortage situation, specifically whether it is improving or worsening in real-time, and if there's a lead time for knowing when supply constraints might ease.

Answer

CEO Thi La stated that Corsair receives similar market intelligence as others, indicating the market will likely remain tight for the next couple of years due to fab capacity and AI data center consumption. He emphasized that Corsair doesn't solely rely on semiconductor output but employs various methods to acquire and produce inventory, leveraging their 30 years of experience in the memory business and their DRAM module manufacturing center in Taiwan.

Douglas Creutz asked if Corsair is relatively better or worse positioned than competitors regarding the newly announced tariffs and whether this situation could present a competitive advantage.

Answer

CEO Andy Paul stated that the impact is segment-specific, but Corsair is in good shape, highlighting its memory production in Taiwan as a past advantage. President and COO Thi La added that the company has been mitigating China-related tariff impacts for years and feels comfortable with its current guidance, noting a lack of exposure to potential new tariffs on production in Mexico or Canada.

Doug Creutz asked about the equity market's reaction to AI fears impacting the video game business and whether this accurately reflects the threats and opportunities Take-Two sees from AI.

Answer

CEO Strauss Zelnick explained that the video game business has always leveraged machine learning and AI. He expressed enthusiasm for generative AI, noting hundreds of active pilots and implementations across the company. Zelnick highlighted opportunities to drive efficiencies, reduce costs, and free creators for more innovative tasks, aligning AI with Take-Two's strategy of being the most creative, innovative, and efficient entertainment company.

Doug Creutz asked about the equity market's reaction to AI fears and Strauss Zelnick's perspective on the threats and opportunities AI presents for Take-Two's business.

Answer

CEO Strauss Zelnick expressed enthusiasm for AI, noting that the video game business has always leveraged machine learning. He highlighted Take-Two's active embrace of generative AI with hundreds of pilots, seeing opportunities to drive efficiencies, reduce costs, and enhance creativity. He reiterated that AI aligns with Take-Two's strategy to be the most creative, innovative, and efficient entertainment company.

Doug Creutz inquired about the strategic implications of Take-Two potentially becoming the last publicly traded standalone publisher of scale, specifically regarding its ability to attract talent, place games in the market, and its overall competitive position.

Answer

Strauss Zelnick, Chairman and CEO, acknowledged the company's strong economic and creative performance, emphasizing a culture of continuous improvement. He highlighted Take-Two's under-leveraged balance sheet, expected return to a net cash position, and independent, publicly traded status as potential advantages, while stressing the importance of not claiming success prematurely.

Doug Creutz inquired about Take-Two's strategic position as potentially the last publicly traded standalone publisher of scale, and how this might influence its ability to attract talent, place games in the market, and affect its overall competitive standing.

Answer

Strauss Zelnick, Chairman and CEO, expressed uncertainty about the exact effects but highlighted Take-Two's strong economic and creative performance. He noted the company's under-leveraged position, expectation to become a net cash company, and independence as potential advantages, while emphasizing a culture of humility and continuous effort.

Doug Creutz of TD Cowen asked about the flat year-over-year advertising revenue, questioning if this signals a bottoming in the ad market or if it was due to game-specific factors.

Answer

Chairman and CEO Strauss Zelnick attributed the stabilization to a strategic shift in their mobile portfolio from hyper-casual to hybrid-casual games. He stated that this adjustment has established a new baseline from which the company hopes to grow its advertising business.

Douglas Creutz asked if any structural changes in the business or industry would prevent Take-Two from reaching its previous peak operating margins of low-to-mid 20% once the current pipeline, including GTA VI, comes to fruition.

Answer

CFO Lainie Goldstein responded that there is no reason the company cannot reach those margins again. She noted that the business is being built to achieve those levels through cost reduction programs and increased efficiency to offset higher development costs as the company scales.

Douglas Creutz inquired about the realization of revenue synergies from the Zynga acquisition, particularly regarding the strategy of bringing Take-Two's core intellectual property to the mobile platform.

Answer

CEO Strauss Zelnick clarified that while they are working on unannounced mobile projects based on core IP, the most significant synergy realized to date has been the creation of a direct-to-consumer business within mobile. He emphasized that historically, the biggest mobile hits are native to the platform, not ports of console games.

Douglas Creutz asked for an update on the fiscal 2025 software lineup, specifically questioning if the three core titles without announced dates are still planned for the year and the potential impact on financial guidance.

Answer

Chief Financial Officer Lainie Goldstein responded that the company's labels will announce title details when appropriate. She clarified that Take-Two does not update its release schedule unless there is a material financial reason to do so.

Doug Creutz asked about Warner Music Group's investments in technology, how these contribute to the current growth outlook, and whether the company's technology priorities are evolving given the rapidly changing landscape.

Answer

CEO Robert Kyncl confirmed that technology priorities remain consistent, focusing on scalable infrastructure for a high-volume business. He highlighted strengthening the global digital supply chain, speeding up songwriter payments, introducing transparent accounting, upgrading core publishing systems (royalty processing, sync licensing), and nearing completion of the financial transformation initiative (SAP implementation). These efforts prepare the company for accelerated growth. CFO Armin Zerza added that these investments also enable global scaling of services and were key to the cost savings program.

Doug Creutz of TD Cowen asked Robert Kyncl to elaborate on how Warner Music Group's technology investments are contributing to the laid-out growth outlook and whether these priorities are shifting given the rapidly evolving industry landscape.

Answer

CEO Robert Kyncl confirmed that technology priorities remain consistent, focusing on strengthening core infrastructure for a high-volume business. He highlighted improvements in the global digital supply chain, accelerated songwriter payments, more transparent publishing accounting, and upgraded core systems (royalty processing, sync licensing). Kyncl also mentioned the near-completion of the financial transformation initiative, which provides better P&L insights and transparency for artists. CFO Armin Zerza added that these investments enable global service scaling and were key to the cost savings program, making the company more operationally efficient.

Doug Creutz of TD Cowen asked CFO Armin Zerza how his experience at Activision, particularly in maximizing content value through platform negotiations, informs his approach to WMG's relationships with digital streaming partners.

Answer

CFO Armin Zerza drew a parallel to the gaming industry's evolution from few price points to a full demand curve. He stated the music industry is at a point where it offers limited products and price points, and sees 'super premium' as just one of many opportunities to offer more value to consumers. He stressed that execution and offering great value are key to unlocking this potential.

Doug Creutz of TD Cowen asked how CFO Armin Zerza's experience at Activision, particularly in negotiating with digital platforms, informs his approach to partnerships at WMG.

Answer

CFO Armin Zerza drew a parallel to the gaming industry's evolution to multiple price points. He stated the music industry has a similar opportunity to move beyond its limited product offerings, with super-premium tiers being just the start. He stressed his focus is on execution and delivering clear value to consumers at every price point.

Doug Creutz of TD Cowen inquired about Electronic Arts' stance on full-game pricing, specifically asking if they would consider an $80 price point for major releases like Battlefield.

Answer

CEO Andrew Wilson stated that EA is not planning any pricing changes, emphasizing their existing broad pricing spectrum from free-to-play to deluxe editions. CFO Stuart Canfield confirmed that no price increases are factored into the FY26 guidance and that the company's focus remains on player lifetime value (LTV).

Douglas Creutz asked for perspective on the American Football franchise's outlook for the upcoming fiscal year, particularly considering the tough comparison created by the significant pent-up demand for College Football 25's launch.

Answer

CEO Andrew Wilson stated that the overall growth of American football as a sport provides a natural multiplier for the franchise. He outlined a strategy to build a unified digital fan platform by deepening the integration between Madden and College Football. CFO Stuart Canfield added that the guidance is prudent, acknowledging the tough comp, especially in Q2, but the long-term expectation remains for continued growth from the franchise.

Douglas Creutz of TD Cowen asked for a progress update on Apex Legends, questioning what initiatives have worked to get the franchise back to its desired trajectory.

Answer

CEO Andrew Wilson acknowledged the franchise's trajectory has not met expectations. He outlined a three-part strategy: 1) continued support for the core community, 2) a significant game update planned for after the Battlefield launch, and 3) a longer-term vision for a more substantial "Apex 2.0." CFO Stuart Canfield noted Q3 performance was in line with expectations, with some sequential improvement in player conversion.

Douglas Creutz asked about the specific actions EA and its leadership took to reposition the BioWare studio for success with Dragon Age: The Veilguard after a challenging decade, and what this implies for BioWare's future.

Answer

CEO Andrew Wilson explained that a key shift was refocusing BioWare on its core strengths—rich worlds, nuanced characters, and compelling storytelling—following the studio's attempt at a different genre with Anthem. He stated that giving the studio the time and mandate to return to what makes it a fan-favorite brand was crucial for delivering a high-quality title like Veilguard, signaling a return to its roots for the studio's future.