Ed Alter

Ed Alter inquired about the drivers behind Take-Two's mobile advertising results and the opportunity for continued growth, as well as the company's view on GTA Online's continued relevance after the launch of GTA 6.

Answer

CEO Strauss Zelnick explained that mobile advertising growth stems from selectively adding ad units and smart monetization strategies without disrupting user experience, aiming to monetize users who don't typically pay. Regarding GTA Online, he stated that Rockstar Games will continue to support it due to its engaged community, noting that delivering great additional content keeps players active, as demonstrated by recent updates.

Ed Alter inquired about the drivers behind Take-Two's mobile advertising results, noting it's the second time year-over-year growth has been reported since the Zynga acquisition, and asked about the opportunity for continued growth. He also asked for Take-Two's view on GTA Online's continued relevance once GTA 6 is released.

Answer

CEO Strauss Zelnick explained that mobile advertising growth stems from selectively adding ad units across games and Zynga's smart monetization strategies, aiming to monetize the large segment of users who don't typically pay, without creating friction. Regarding GTA Online, Zelnick stated that Rockstar Games will continue to support it, noting the strong community engagement and the proven success of delivering great additional content, even after many years in market.

Ed Alter requested an update on the BioShock title, specifically regarding the recent key hire of Rod Ferguson and his mandate at Cloud Chamber. He also asked about the sustained increase in ad revenue over the past two quarters, inquiring if it's primarily driven by Color Block Jam or a broader performance across the Rollic portfolio.

Answer

Karl Slatoff, President, expressed excitement about Rod Ferguson leading Cloud Chamber as the new head of the BioShock franchise, highlighting his industry veteran status and past experience, and stated that the game is on track to exceed consumer expectations. Lainie Goldstein, CFO, confirmed that the increase in ad revenue is across the entire mobile business, with Rollic, in particular, achieving fantastic performance.

Ed Alter requested an update on the BioShock title, specifically regarding the key hire of Rod Ferguson and his mandate at the studio. He also asked about the drivers behind the recent increase in ad revenue, inquiring if it's primarily from Color Block Jam or a broader Rollic portfolio performance.

Answer

Karl Slatoff, President, expressed excitement about Rod Ferguson leading Cloud Chamber and the BioShock franchise, highlighting his industry veteran status and past experience. He stated that BioShock is a very important franchise, and the game is on a great track to exceed expectations. Lainie Goldstein, CFO, confirmed that the ad revenue increase is primarily driven by the fantastic performance across the entire mobile business, particularly from Rollic's portfolio.

Ed Alter asked how the significantly better reviews for NBA 2K25 translate to sales and recurrent consumer spending, given that unit sales appeared flat. He also inquired about the revenue mix in hypercasual games.

Answer

President Karl Slatoff responded that higher review scores reflect stronger engagement, which is driving double-digit growth in revenue per user. He attributed flat unit sales to the ongoing console transition. For hypercasual, he noted the revenue mix now includes both advertising and significant in-app purchases.

Asked whether the company's primary headwinds were related to its go-to-market strategy or product fit, and inquired about the composition and growth strategy for the CTV business.

Answer

The company clarified that the headwinds are operational and controllable, not an issue of product fit, and that they feel they have 'turned the corner'. The CTV business is a combination of differentiated home screen placements and in-stream ads, with growth supported by its integration into the main ad platform for easier omnichannel buying.