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SouthPeak: $12.1 Million Loss Due To Year Of Investment In Growth
by Leigh Alexander [PC, Console/PC]
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October 14, 2009
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Publisher Southpeak netted $47.4 million in revenues in its fiscal 2009, $7.2 million and one million units more than last year -- but it opened up a loss, too, reporting $12.1 million in losses as compared to a $1.5 million profit last year.
But the company says the hit to its profits was all money and attention well-spent, as it aims to grow, globalize, explore new platforms like the DSi, and position itself overall to develop as a larger global publisher.
Part of the loss was expenses related to its acquisition of Gamecock, including write-downs on software values and the purchase of sequel rights. The company also spent $4 million on marketing, and in brand-building for its My Baby franchise.
The company also invested in new hires, core infrastructure and international expansion, such as its new Leicester marketing office from which it hopes to reach European and Asian territories. More significantly, SouthPeak says it's spent time and resources building the the capacity for simultaneous worldwide next-gen launches, and increasing the flexibility of its development pipeline.
"This past year SouthPeak achieved several impressive metrics and made investments in its groundwork and foundation for our further sales growth," says SouthPeak CEO Melanie Mroz.
"Although 2009 proved to be a challenging year, SouthPeak’s overall game sales increased by over one million units compared to fiscal year 2008, as we continue to take advantage of strong consumer demand for games on portable devices."
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