SouthPeak Interactive's latest financial results revealed that the company us doing fairly well with net revenues double from last year, and moving from a loss in 2008's quarter to $1.3 million of earnings. More importantly Southpeak acquired certain TNA iMPACT assets in Midway's bankruptcy, and reveals it is working on TNA iMPACT: Cross the Line for PSP, PSPgo and NDS.
For the quarter ended September 30, 2009, SouthPeak reported net revenues of $16.7 million compared to $8.3 million in the comparable period in 2008. Earnings before interest, taxes, depreciation and amortization, as adjusted (“Adjusted EBITDA”), was $1.3 million for the period compared to a loss of $1.3 million in the comparable period in 2008. Non-GAAP net income for the period was $843 thousand compared a loss of $1.4 million in the comparable period in 2008. GAAP Net income was $687 thousand or $.01 per diluted share for the period compared to a GAAP net loss of $2.7 million or ($.08) per diluted share in the comparable period in 2008.
“We are pleased with our operational results for the quarter, and continue to see the benefits of our investment in our infrastructure and personnel. In this period, we launched three Xbox 360™ titles, which included the global launch of Section 8™ on Xbox 360 and Games for Windows LIVE,” said Melanie Mroz, CEO of SouthPeak. “We are pleased with our continued revenue growth despite the ongoing challenges in the retail environment and are excited by the hardware price reductions. We expect that the recent price reductions can drive momentum for the industry going into the holiday season.”
Highlights of the Quarter include:
- Quarterly net revenue increase of approximately 100%, to $16.7 million from $8.3 million in the comparable period in 2008.
- Adjusted EBITDA of $1.3 million for the period compared to a loss of $1.3 million in the comparable period in 2008.
- Acquired in bankruptcy certain assets owned by Midway relating to video games based on the TNA iMPACT wrestling brand.
- Continued strong demand for My Baby™ (Nintendo DS™) makes it one of the best-selling life simulation titles on Nintendo DS. Highly anticipated product extensions of this franchise are expected to hit stores this holiday season.
- Upcoming product releases include My Baby: First Steps (Wii™ and Nintendo DS), Horrid Henry (Wii, Nintendo DS and PC), Miniclip™ Sushi Go Round (Wii, Nintendo DSi™ and iPhone™), TNA iMPACT: Cross the Line (PSP, PSPgo and DS), Dementium™ II (Nintendo DS), Fast Food Panic (Wii and Nintendo DS), Sled Shred featuring the Jamaican Bobled Team (Wii), Crime Scene(Nintendo DS) and Montessori Music (Nintendo DS).
Terry Phillips, Chairman of SouthPeak, added, “Our results validate our business strategy, and our unique positioning in the industry is providing us with many exciting product opportunities. Brands around which we will release titles this year include TNA wrestling, Montessori education, Miniclip, Horrid Henry and the Jamaican Bobsled Team. We are excited by the continued success of the My Baby brand, and have recently just released product extensions on both Wii and Nintendo DS.”
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