Lainie Goldstein
Chief Financial Officer at Take-Two Interactive Software
Thanks, Carl, and good afternoon, everyone. We delivered solid 3rd-quarter results led by the power of our diversified business. During the period, our teams brought innovation to our existing franchises, enhanced our relationships with our player communities and made outstanding progress on our eagerly anticipated pipeline.
I'd like to thank our teams for their disciplined execution and continued focus. Turning to our results, we achieved 3rd-quarter net bookings of $1.37 billion, which was within our guidance range of $1.35 billion to $1.4 billion. We delivered outstanding performance in MBA 2K, which helped offset moderation experience in some of our mobile franchises.
Recurring consumer spending rose 9% over last year, which was in-line with our guidance and accounted for 79% of net bookings. MBA 2K grew over 30%, which greatly surpassed our forecast led by new features and innovation in our game modes. Mobile increased 6%, driven by the addition of Match Factory and strength in June Blast, Toy Blast and with. However, this was below our guidance of low double-digit growth, primarily due to underperformance in our hypercasual mobile portfolio and Empires and Puzzles and as anticipated, Grand Theft Auto Online declined.
GAAP net revenue was $1.36 billion and was flat to last year, while cost of revenue declined 13% to $600 million as the prior year included an impairment charge related to acquired intangibles. Operating expenses increased by 10% to $892 million. On a management basis, operating expenses rose 8% year-over-year. This was favorable to our forecast, largely due to a shift in timing of expenses into the 4th-quarter. This shift along with the outperformance of MBA 2K drove operating results that were above the high-end of our guidance range.
Turning to our outlook, I'll begin with our full-fiscal year expectations. As Straus mentioned, we are reiterating our net bookings outlook range of $5.55 billion to $5.65 billion, which represents 5% growth over fiscal 2024. The largest contributors to net bookings are expected to be NBA 2K, the Grand Theft Autos series, Tom Blast, our hypercasual mobile portfolio, Match Factory, Empires and Puzzles, the Red Dead Redemption series, Civilization 7 and Words with Friends.
We are raising our recurrent consumer spending forecast to 5% growth, which represents 78% of net bookings driven by the phenomenal performance we are experiencing in MBA 2K, which we now expect to grow low-double-digits. Mobile is now expected to grow low-single digits as we are factoring in the current business trends and Grand Theft Auto Online is still expected to decline. We project the net bookings breakdown from our labels to be roughly 49% Zynga, 34% 2K and 17% Rockstar Games.
We forecast our geographic net booking split to be about 60% United States and 40% international. Non-GAAP adjusted unrestricted operating cash-flow is expected to be an outflow of $150 million, which is unchanged from our prior forecast, and we remain on-track to deploy approximately $140 million of capital expenditures, primarily for game technology and office build-outs. We continue to expect GAAP net revenue to range from $5.57 billion to $5.67 billion, while we now expect cost of revenue to range $2.41 billion to $2.44 billion.
Total operating expenses are still expected to range from $3.77 billion to $3.79 billion as compared to $5.83 billion last year. On a management basis, we expect operating expense growth of approximately 10% year-over-year, which is unchanged from our prior guidance and is largely due to an increase in ongoing marketing support for Match factory as well as other mobile and immersive core launches planned for the year. The addition of Gearbox and higher personnel costs, partially offset by savings from our cost-reduction program. Excluding incremental marketing and the addition of Gearbox, our operating expenses are expected to grow low-single digits over last year.
As it relates to our operating performance, while our 3rd-quarter results exceeded our expectations, we are maintaining our outlook for the fiscal year as we are factoring several dynamics, including strength in MBA 2K, offset by a continuation of the mobile trends we have been experiencing and the shift of some operating expenses in the 4th-quarter.
Now moving on to our guidance for the fiscal 4th-quarter. We project net bookings to range from $1.48 billion to $1.58 billion compared to $1.35 billion in the prior year. Our release slate for the quarter includes Civilization 7, PGA Tour, 2K25 and WWE 2K25. Largest contributors to net bookings are expected to be MBA 2K, the Grand Theft Auto series, Civilization 7, Tom Blast, Match Factory, our hypercasual mobile portfolio, Empires and Puzzles, WWE 2K25 and Words with friends. We project recurrent consumer spending to increase by approximately 3%, which assumes a high-teens percentage increase for NBA 2K, partly offset by declines in both mobile and Grand Theft Auto Online.
We expect GAAP net revenue to range from $1.52 billion to $1.62 billion. Operating expenses are planned to range from $900 million to $920 million. On a management basis, operating expenses are expected to decline approximately 2% year-over-year, which is primarily driven by a more normalized level of marketing from Match factory as the title has now been in the market for over a year as well as savings from our cost-reduction efforts. In closing, we are forecasting a milestone year ahead of us and we look-forward to showing our fans and the global gaming community how our new titles can take our industry to another level of creativity.
We are also optimistic that the chapter ahead will set us on a path to achieving new financial goals, including reaching a record level of scale, enhancing our profitability and unlocking significant value for our shareholders.
Thank you. I'll now turn the call-back to Strauss.
