GAME Digital posts sharp fall in pre-tax profits
Video games retailer GAME Digital has seen a sharp fall in its full year pre-tax profits after the business was impacted by a challenging console market in the UK.
In the year to 23 July, pre-tax profit declined from £25.8 million to £4.1 million.
Sales also fell, dropping from £866.6 million to £813.1 million as the company continues to reposition and transform its business.
GAME chief executive Martyn Gibbs said: "Market dynamics in the UK have undoubtedly been tough in the past year. The management team responded quickly to these new market conditions and have made significant progress with its action plan since January.
“This has included improving supplier arrangements and terms, implementing efficiency and cost saving initiatives across the business; completing an organisation redesign and other process improvements. This programme of activity is ongoing and has started to help to improve our financial performance.”
GAME said it is continuing to make further progress in driving its retail diversification plans, including strong performances in digital content, higher margin accessories, and preowned phones and tablets. In addition, it said it has made “significant” progress across its strategic growth initiatives, including esports, events, live gaming activities and digital services.
Gibbs added: “We recognise that we need to continue to reposition and transform the business. We have a clear vision to build a company that combines multichannel retail, live gaming and digital services to deliver a highly compelling and unique combination of products and services for gamers.
"Looking forward, we are encouraged by the strong line-up of highly anticipated new consoles, virtual reality headsets and games scheduled for launch over the next 12 months that will drive new growth and impetus to the market and our business together with the wider growth opportunities for the group.”
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