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Finance

Third quarter sales and profits up for SouthPeak

Fri 27 May 2011 10:08am GMT / 6:08am EDT / 3:08am PDT
FinancePublishing

Two Worlds II helps results as publisher plans for Xbox Live downloads

Publisher SouthPeak has announced its financial results for the third quarter ending March 31, with the company reporting a notable rise in both revenues and profits.

Net sales stood at $16.1 million (11.3m/9.8m), up from $7.5 million (5.3m/4.6m) at the same time in 2010. Average net revenue per unit sold also increased by 109 per cent. Net profit was $3.2 million (2.3m/1.9m), compared to just $0.2 million last year.

The increases were attributed to the successful launch of Xbox 360 and PlayStation 3 product Two Worlds II and "regained momentum" for the My Baby franchise.

Total operating expenses for the three months were down by 17 per cent to $3.3 million (2.3m/2.0m), excluding one-time gains. The drop was primarily due to a 49 per cent reduction in general and administrative expenses, but offset by increased sales and marketing costs for Two Worlds II.

"During the quarter we continued to make great progress on our digital strategy, including the launch of our first title with our partner Nvidia, Monster Madness, one of the first games to fully utilize the Nvidia Tegra 2 chip and developed on the Epic Unreal 3 Engine," said CEO Melanie Mroz.

"In addition to launching future titles with Nvidia, we will look to advance our digital initiative with publishing some of our most successful boxed product titles on the Xbox Live online entertainment network Games on Demand service for the Xbox 360," she added.

"During the quarter we experienced success with the release of Two Worlds II, and have seen enthusiastic anticipation for the upcoming Stronghold 3 release," said chairman Terry Phillips.

"This validates our approach of focusing on titles with strong brand recognition and awareness. We are also excited by the continued interest in our catalogue titles, and believe our catalogue to be a stable base of business which complements our new releases."

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