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GAME Group Sees Record First Half Profits
by David Jenkins [PC, Console/PC, Mobile Console]
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September 30, 2008
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UK based retailer GAME has reported £36.4 million ($65.7m) in profits for the first half of the year, up from £2.7 million ($4.9m) the previous year.
Total sales growth for the six months ending July 31st came to 54.1 percent, up 22.2 percent year-over-year. The company’s international sales also saw a significant rise, up 64.2 percent or 17.4 percent year-over-year.
The company says the integration of previous UK rival Gamestation is going "better than anticipated", with £9 million ($16m) of synergies expected in the current year - £2 million more than previously expected. GAME Group also recently acquired a chain of 19 specialist retailers in the Czech Republic, bringing its total worldwide stores to 1,300.
The company also says all console hardware is currently in good supply and that the installed base for new generation consoles now stands at over 17.2 million in the UK.
As GAME points out, this level of console ownership has been achieved in just three years, compared to seven years for the previous generation.
The positive results have led the company to raise its full year guidance for same-store sales increases to 8 to 12 percent, up from 5 to 10 percent. "The business has performed extremely well with both turnover and profit growth throughout the Group," says chairman Peter Lewis.
"We recognize the extraordinarily challenging and uncertain market conditions in which we are operating today, and we cannot be immune to wider economic uncertainties."
Lewis adds, "However, we continue to be encouraged by the ongoing demand for third-generation hardware and software, which is in part being driven by the broadening demographic appeal. In addition, playing games provides a more affordable alternative to many other family leisure activities and we remain committed to delivering our customers the widest choice and value for money."
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