SouthPeak Doubles Sales in Q1, Acquires TNA Wrestling Assets

SouthPeak Interactive has released its first-quarter fiscal results for the period ended September 30. Following a fiscal year that saw the company lose $12 million (in part thanks to costs related to the Gamecock acquisition), SouthPeak today said its net revenues in Q1 grew 100% to $16.7 million, and the quarter also yielded net income of $687,000 compared to a net loss of $2.7 million a year ago.

“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.”

Importantly, SouthPeak also revealed that it's acquired the assets in bankruptcy from Midway relating to the TNA iMPACT wrestling brand, so we'll no doubt be seeing some TNA games in the future.

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.”