Zumba Fitness developer Majesco completes move into online gaming

15th October 2013 9:20 am GMT

Games developer Majesco Entertainment, famous for developing the successful Zumba Fitness game for Nintendo Wii, has secured its move into the online gaming and social casino sector following its acquisition of Orid Media and Pariplay.

Majesco had stated its aim of pursuing an online casino games strategy earlier this year by acquiring a 50 per cent interest in GMS Entertainment, a company which had already agreed to acquire the “operations and certain assets” of Orid Media and Pariplay.

Orid Media develops online and mobile content for real-money games, social casino apps and lottery systems, while Pariplay is licensed by the Isle of Man Gambling Supervision Commission and offers a range of slots, bingo and instant win games such as Tiki Madness, Tokyo Nights and Pharoah’s Gold.

In a statement Monday, Mejesco confirmed that GMS had now completed the acquisitions of both Orid Media and Pariplay.

Majesco CEO Jesse Sutton said he was pleased that Pariplay received the requisite regulatory approvals to allow the company to complete its investment in the newly formed venture.

“The iGaming, iLottery and social gaming segments of the online gaming market are growing rapidly, and looking ahead, additional jurisdictions are expected to legalize real money online gaming and lottery, which will fuel further market expansion and opportunity for GMS Entertainment,” said Sutton.

Majesco’s move into the online gaming and social casino space will supplement its existing console gaming business, which has struggled this year with the company recently warning that it expects full year revenues to be “significantly below” last year’s levels, resulting in a net loss for the full year.

In its most recent financial results released last month, Majesco’s revenues for the nine month period ended July 31st had slumped 65 per cent to $37.2m compared to the same period last year, with third quarter revenues down 56 per cent year-on-year. Net loss for the period was $8.1m, compared to a net income of $7.3m a year ago.

Sutton said that the company’s results reflected the “ongoing industry transition to next generation console gaming.”

“In light of the current market transition, we’re finding innovative ways to leverage Majesco’s core competencies including our industry relationships, distribution reach and sales and marketing prowess,” said Sutton.

As well as its new online casino games strategy, the company has also formed a new division to focus on the growing independent games market by offering services and support to independent game developers for digital distribution platforms.

“We are excited about the growth prospects of these two new focus areas for Majesco,” added Sutton. “With over $18m in cash and no debt on our balance sheet, we continue to have the financial flexibility necessary to invest in growth areas of the gaming market.”

Majesco’s immediate focus will be on releasing several high-profile branded games, based on Phineas and Ferb, Agent P Doofendash, Barbie and others. The company will also continue to evolve its popular Zumba franchise with the upcoming Zumba Kids and Zumba Fitness World Party releases, as well as the already launched Zumba Dance, which it claims is the first ever motion-based fitness experience for mobile tablets.

Shares in Majesco Entertainment Company (Co. Data) (NASDAQ:COOL) closed yesterday at $0.5972 per share in New York yesterday following the announcement.

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