Take Two Partners With HB Studios to Publish The Golf Club

Take-Two Interactive Software, Inc. Revenue (TTM) | Take-Two Interactive Software, Inc. Quote

Take Two Banks on Unique Agreement

Take Two benefits from the unique agreement it has with HB Studios for PGA TOUR by becoming the sole provider of the PGA TOUR golf simulation game.

HB Studios had been successful in reaching an agreement with the PGA TOUR to add licensed courses and a new career mode to its game The Golf Club 2019.

Notably, an earlier deal between Electronic Arts EA and PGA TOUR was cancelled on amicable terms, per gamespot.

Expanding Portfolio: Key Catalyst

Take Two’s, 2k which is expanding its portfolio with HB Studios’ partnership, compared to its existing partnerships with NBA and WWE is a positive.

Notably, NBA2K18, which is the highest-selling sports title ever in the company’s history, sold more than 10 million units as of the last reported quarter. Moreover, NBA 2K Online remains the leading PC online sports game in China with over 37 million registered users.

The recent deal opens up a great opportunity for Take Two to cash in on the partnership as it is now the sole provider of the PGA TOUR golf simulation game, a space which was earlier dominated by Electronic Arts.

Moreover, the game’s popularity coupled with Take Two’s digital prowess will drive player engagement, thereby adding to revenue growth.

However, rising competition from the likes of Electronic Arts, Activision Blizzard ATVI, Glu Mobile GLUU and Fortnite remains a headwind.

Also, increase in operating expenses due to higher acquisition costs as well as higher marketing and R&D expenses remains an overhang on the bottom line.

Take Two currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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