Game profits up 20.3% despite challenging trading conditions
Game has seen its half year pre-tax profit rise by 20.3% to £14.8 million despite a “challenging” retail environment.
Revenue was down 4.7% to £492.9 million in the six months to 26 January. On a like-for-like basis the company’s gross transaction value was broadly flat on the same period in the previous year.
Meanwhile, group adjusted EBITDA was up 21.7% to £25.8 million.
During the period, Game continued to make cost savings through its rent negotiation programme, store payroll efficiencies and other store, head office and distribution savings.
It also made further progress in repositioning the company and with “right sizing” its retail business in the UK.
Martyn Gibbs, chief executive of Game, said:: “We are pleased with our performance in the first half delivering a 22% growth in adjusted EBITDA and a material improvement in cash and liquidity during the period.
“Our core retail businesses are facing a challenging retail environment that continues to evolve at pace, but we have set ourselves up well with our transformation programme and continued focus on costs and efficiencies.”
The company said it is contuing to focus on a strategy to move it from a seller of physical products to providing gaming experiences and services.
Gibbs said: “We believe there will be ongoing economic uncertainty and market headwinds which are expected to affect the performance of the group in the near term, however we remain confident in the longer term growth prospects of the group.”
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