Majesco’s Entertaining Spree is About to Begin
Himanshu is a member of The Motley Fool Blog Network -- entries represent the personal opinion of the blogger and are not formally edited.
Among millions of gaming applications available on the internet these days, Farmville and Cityville are the ones that engage people the most. These games are available on Facebook (NASDAQ: FB) and attract millions of players making Zynga (NASDAQ: ZNGA), the provider of these games, the gaming leader on the largest social networking site. But there needs to be continuous innovation in order to keep the customers from losing interest in the website.
To overcome this, a new gaming application, called Mini Putt Park, has been recently launched on Facebook. This game, where players build mini golf courses, is provided by Majesco Entertainment (NASDAQ: COOL). Though the company does not have a presence as significant as Zynga, it has been trying to make its presence felt in the gaming market. Let’s take a closer look at the company.
There have been a number of initiatives taken by the company recently. It has launched a number of games in the last quarter and has plans to introduce many more in the months to come.
A Bird Eye View of the Launches
In addition to launching the social game called Mini Putt Park on Facebook in Beta version last month, it had launched Zumba Fitness Rush in February. This fitness title, which uses Indian songs for a workout, was released for Xbox 360 and is now among the best selling Kinect titles. Following up in the success of Zumba Fitness, the video game provider is on the verge of introducing another fitness title called Zumba Fitness Core. This fitness game, to be launched for Xbox 360, is supposed to be the first of its kind where it is designed to help gain an entire body workout and helps tightening and toning abs for its customers.
Moving into the recent quarter results…
Majesco witnessed a decrease in revenue for its second quarter of 5% over last year. This drop was mainly attributed to an early release of its Zumba sequel compared to 2011. The adjusted earnings plummeted by 38% reaching 7 cents per share for the quarter. The company had fallen prey to higher marketing expenses for the release of Zumba Rush. But the products launched recently are expected to go a long way to help the video game provider push its profits higher.
Some Positives
Though total revenue had fallen, revenue contribution from international sales have doubled for the quarter. It now constitutes 21% of the total revenue of the company.
Another positive move made by the company is that it has started selling its products through a distribution agreement in Europe instead of licensing it to the local manufacturers in the country. Though it negatively affected revenue this time it might help them boost its top line by expanding its direct market presence.
Another positive factor which will be working for Majesco in the next few quarters is the introduction of new and innovative games. The company has a stellar lineup for the holiday season, including the likes of NBA Baller Beats - a basketball video game, Zumba Fitness Core, Double Dragon Neon and Mama’s Combo Pack. These games belong to different categories and thus, would be playable by a larger audience. Further, Majesco is looking to move beyond the social networking giant and plans to launch its games on the iPad and the iPhone.
My Takeaway
The innovative game provider, though a small player compared to peer Zynga, looks like an upcoming entertainer trying to make its presence wider and stronger. Also, even after a dim quarterly result, the company is on its way to brighten up its future with its number of new products lined up to be launched in the coming months. On the whole, the company seems to have much influence on the gamer’s mind and a great future ahead.
justhimanshu has no positions in the stocks mentioned above. The Motley Fool owns shares of Facebook. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.If you have questions about this post or the Fool’s blog network, click here for information.
