Zynga Soars as Take-Two Reports Record Mobile Earnings
Take-Two, the parent company of Zynga, Rockstar, and 2K, has announced its Q4 and full-year financials, revealing that mobile gaming is once again leading the charge. Zynga celebrated its best quarter ever in net bookings, with standout titles like Toon Blast, Match Factory, Empires & Puzzles, Color Block Jam, Words With Friends, and Toy Blast driving success. In Q4 alone, mobile net bookings reached an impressive $829.1 million, marking a 14% increase year-on-year and accounting for 52% of the platform split. Console games followed at 38%, with PC and other platforms capturing the remaining 10%. For the full fiscal year 2026, mobile net bookings totaled $3.3 billion, also up 15% from the previous year, constituting 49% of the overall platform split. Overall, Take-Two reported Q4 net bookings of $1.58 billion, exceeding the guidance range of $1.51 to $1.56 billion. For the entire fiscal year, net bookings amounted to $6.72 billion, surpassing expectations of $6.65 to $6.7 billion. The guidance for FY27 has been notably raised, largely due to high anticipation surrounding GTA VI, with the company projecting net bookings of $8 to $8.2 billion. Some mobile-specific highlights include a year-over-year growth of over 25% for Toon Blast, a 5% increase for Empires & Puzzles, and a 15% rise for Color Block Jam. Remarkably, the 16-year-old game Top Eleven recorded its strongest quarter to date, while WWE SuperCard reached 39 million lifetime downloads. Additionally, NBA 2K26 Arcade Edition has become a top five title on Apple Arcade, and NBA 2K All-Star in China has amassed 10 million registered users. Looking ahead, Take-Two plans to release two new mobile titles in the upcoming financial year. Although specific release dates were not provided, CSR 3 from NaturalMotion and Top Goal from Nordeus were mentioned as being in soft launch. The company also highlighted the success of its direct-to-consumer business, which is enhancing margin growth by reducing payment friction and boosting customer loyalty. However, forecasts for Take-Two's mobile business have been slightly tempered. CEO Zelnick attributed this to the unpredictable nature of mobile hits and the maturation of newer titles like Color Block Jam and Match Factory. He stated, "On the mobile side, particularly, we never anticipate huge numbers, because it’s just impossible to do so. Hit ratios are just too low." In a nod to technological advancements, Zelnick confirmed that Take-Two is leveraging generative AI for creating user acquisition ad creatives, which has drastically reduced production costs. He shared an anecdote about a studio visit where AI-generated ads were not only efficient but also entertaining, previously saving significant amounts that would have been spent on traditional production methods. Zelnick acknowledged the dynamic mobile gaming scene in Turkiye, noting the local tax breaks and subsidies that support market growth. When questioned about potential acquisitions, he indicated that while it's a possibility, the company is highly selective regarding mergers and acquisitions. He added, "Assuming our balance sheet continues to improve, I think you could imagine more inorganic growth in the future as well." As for the much-anticipated GTA VI, Zelnick sidestepped inquiries about its price point, which some speculate may exceed $100 upon its release on November 19.
