Transcription:

so in a few days we have take to
interactive’s earnings call but there’s
a few things that you need to know and
footnote I’m still recovering from being
ill so sorry about my voice so take two
Rockstar’s parent company have their
earnings call on the 6th of February
which is just in a couple of days now
these earnings calls are to update
investors with what’s happening with all
of the businesses under the take to
interactive umbrella and of course
there’s a lot but each earnings call
serves a different purpose so in
business the year doesn’t Ru from
January to the end of December it runs
from April until the end of March so
take two have their first earnings call
of the calendar year in May this call is
to give all of their investors
predictions of what’s happening over the
next 12 months and Beyond this usually
comes in the form of a financial
prediction of how much money the
business will gross and net over the
next 12 months alongside this they
release a document which has to
substantiate where they get these
predictions from for example you can’t
just say that we’ll make a100 billion
which which of course would end up
bumping their share price without
actually having anything to substantiate
that this is where agencies like the SEC
come into play to help govern the
publicly trading companies and to make
sure that everything is above board so
what happens after May well before we
get into that I want to thank today’s
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what you bought now let’s get back to
the video so we know what Take 2 will do
in May but what about after well take
two have earnings calls every 3 months
and these are all relatively the same
just reviewing where they’re at with
their previous predictions however their
last earnings call of the fiscal year is
in February now this earnings call is
slightly different this earnings call is
to basically review the holiday period
essentially reviewing how well Christmas
performed for take to interactive now
last year during the February earnings
call take to interactive made a little
mistake well actually legally speaking
it was quite a big mistake now at the
end of these earnings calls they do a
Q&A with some of their larger Investment
Portfolio managers some of these people
are account managers at large Bank Banks
such as JP Morgan Chase and that sort of
thing one of the investors asked for a
prediction of fiscal 25 I.E what they
expect their turnover to be between
April 24 and the end of March
2025 and take 2 nervously answered
around 6 to7 billion which is a good 30%
more than they were currently turning
over at that time this meant at that
particular point in time take 2 probably
had some sort of reason to believe that
they’ll have a huge cash injection into
the business in early 2025 which of
course the only IP that could do that
would be GTA 6 but during this Q&A
segment stra Sonic quickly cut off Laney
from Talking realistically speaking this
could have got them into a lot of
trouble with the SEC because they were
making a prediction based on something
that was not Beyond Reasonable Doubt and
more particularly it wasn’t set in stone
more to the point companies like Take 2
cannot be making predictions until after
they enter the fiscal year itself hence
why they have their first annual
earnings call in May a month after the
fiscal year begins this is when they
update this document to reflect their
predictions which is why this document
went from 2025 for GTA 6 to full 2025
for GTA 6 in May however there’s still a
small chance we could get some GTA 6
News if Rockstar makes an announcement
between now and the earnings call then
take two can reflect that in their
reporting and whilst they won’t be able
to give a prediction for the next fiscal
year they they can at least talk about
GTA 6 which is why Sam Hower announced
trailer 1 was coming 8 hours before a
take to interactive’s earnings call but
what’s more interesting is that Rockstar
have to give us an update before May
otherwise take 2 cannot make accurate
predictions for the following 12 months
now this is really important for t to
interactive because when they make their
beginning of the year predictions this
generally speaking is a road map for how
the business performs over the next 12
months they’ll get an initial cast
injection from new potential investors
throughout may but then also it gives
them the option to substantiate that
throughout the year whether that be more
GTA 6 trailers whether that be more
General hype in the industry and this
makes take to interactive and more
appealing investment for not just me and
you but every major bank and business in
the world now if T to interactive don’t
get anything from RockStar at the start
of May they’ll be going into their
fiscal 26 predictions with basically
nothing and we actually saw this after
the earnings call last year in February
last year when Laney mentioned a 6 to7
billion increase in revenue for t to
interactive then it came around to May
and they revised this prediction back
down to just over $5 billion which is
30% less than they originally stated in
February this CA take to interactive
stock price to actually drop and this is
one of the main reasons that stra zik
cut off Lany from talking because making
a preemptive prediction about what take
to interactive stock price will do prior
to any convincing evidence of why or how
it would do that will negatively affect
the business in the long term so to
conclude if we don’t hear anything from
Rockstar before the earnings call I say
that there’s probably only a 5% chance
of us hearing anything about GTA 6 in
the call at most they’ll probably say
something like rockstars working hard or
the game will be ready when Rockstar say
it’s ready for example however if we
hear from Rockstar before the call I’d
put that up to a 99% chance of them
talking about it if Rockstar announces a
new trailer or even a delay for that
matter of course take to interactive
will’ll have free reign to actually
discuss what this means for take to
interactive however for the earnings
call that’s coming in May in 3 months
time I’d say that there’s pretty much
damn near 100% chance that we hear
something about GTA 6 in some form of
big way whether that is a delay or a
trailer or an official release date who
knows but if we don’t see a trailer 2 or
screenshots or anything before may I
think at that point it’s fair to assume
that the game realistically probably
could be delayed but I’m interested hear
what your thoughts are down below now
for the take to interactives earnings
call I will be streaming it here on the
channel so make sure you subscribe and
tap the Bell icon and throughout the
earnings call we’ll pause and I’ll
discuss what various bits mean hopefully
I can give you some more insight into
what they’re actually talking about
assuming that I actually know what
they’re talking about at the time thank
you so much for watching today’s video
if you did enjoy it like And subscribe
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Watch the video here: https://www.youtube.com/watch?v=YVi4hiQmZFU