Take-Two Interactive Software, Inc. F1Q09 (Qtr End 1/31/09) Earnings Call Transcript

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2009-03-10 18:56:09.0

Tags: Revenue, Take-Two Interactive Software Inc., Call Transcript, Earnings, Amortization, Operational Accounting, Sales Strategy, Finance, Sales, Seeking Alpha

Question-and-Answer Session

Operator

Thank you. (Operator Instructions) Your first question comes from Doug Creutz - Cowen and Company.

Doug Creutz - Cowen and Company

I was wondering if you could maybe comment on where the preorders for GTA Chinatown Wars are? How do they compare maybe to the PSP GTAs that you released in the last several years?

Benjamin Feder

Doug, we don't generally release preorder information. The company itself doesn't have a ton - or Rockstar, say, doesn't have a ton of experience on the DS platform in terms of how it's performed against other titles. I will say that I personally have high hopes for the title. I think it's going to do well, but I don't want to get in front of the release.

But we tend not to give out information on preorders. Sorry.

Operator

Your next question comes from John Taylor - Arcadia Investment Corporation.

John Taylor - Arcadia Investment Corporation

I've got a couple of questions, some of them related to GTA. I wonder, Lainie, could you tell us what percentage of published revenue came from GTA in the quarter?

Lainie Goldstein

For GTA 4 and the entire catalog of GTA, for the whole franchise we had about $60 million in sales for the quarter, which was about 40% of publishing sales.

John Taylor - Arcadia Investment Corporation

And I ask you this every time but now that it's coming up here let me try it again. So when you book the revenue from the downloadable version of The Lost and Damned, can you give us a sense of what the P&L looks like? Is there a contribution margin past a certain amount or how can we think about the operating leverage potential of that?

Lainie Goldstein

Well, as we've mentioned before, JT, we can't go into too many specifics due to the confidentiality of the agreement, but we can tell you generally that we'll be recognizing some deferred revenue and it will be paired with some capitalized software amortization and some associated marketing expenses. And the title will also be subject to the new Rockstar royalty plan and any revenue we recognize from Microsoft will be net of any of their royalties.

John Taylor - Arcadia Investment Corporation

And then you mentioned that the reception was good relative to other downloadable content. I wonder if you could tell us how many downloads there have actually been?

 

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