THE RETAIL BULLETIN - The home of retail news
Lest we forget
HOME
RETAIL NEWS
RETAIL EVENTS
Fashion
Department Stores
Shopping Centres & Retail Parks
Home & DIY
Electricals
Health & Beauty
General Merchandise
Entertainment
Sports & Leisure
Retail Solutions
Food & Drink
Interviews
RETAIL INSIGHTS
RETAIL SOLUTIONS
ABOUT US
CONTACT US
SUBSCRIBE FOR FREE
GAME enjoys 'robust' second half trading

GAME has said it enjoyed “robust” trading in the second half of its financial year with a “good” uplift in gross margin and a positive EBITDA contribution.

GENERAL MERCHANDISE

GAME enjoys 'robust' second half trading

GAME has said it enjoyed “robust” trading in the second half of its financial year with a “good” uplift in gross margin and a positive EBITDA contribution.

In a year-end trading update, the specialist games retailer said revenues excluding hardware were up over 7% in the period as the company benefited from a 16% increase digital sales. Preowned and other non-hardware sales also put in a good performance.

Hardware revenues fell by 19% mainly due to lower average selling prices.

Given the higher mix of higher margin product sales, lower mix of lower margin hardware sales and the overall improvement in margin rate in both categories, overall margins were up over 200 basis points on last year, driving a 9% increase in gross profit in the second half.

GAME said over 550,000 customers have registered with its GAME Wallet e-payment platform and there are now over 1.5 million registered GAME app users in the UK and Spain. In March GAME launched GAME Marketplace, which to date has added over 100,000 gaming-related products to the range.

GAME's Spanish business grew its revenues 25% on a constant currency basis during the second half.

Looking ahead, GAME expects the overall UK video games market to grow slightly over the next twelve months and said it remains confident that the company will achieve growth in sales and profits in the full year.

Martyn Gibbs, GAME chief executive, said: "We are confident that our strategy of focusing on the recruitment and retention of Xbox One and PlayStation 4 owners across our two major territories provides a solid foundation from which to drive growth over the medium term.

"We have made good progress on our customer and community engagement and strategic priorities over the year. Our ambition to broaden our offer beyond purely retail, to the places and ways in which our customers play games is moving forward at pace, with continued support from our supplier partners.

"Our preparations for this year's peak trading season are already well advanced. The line-up of new physical and digital games launches in the coming months looks very strong and our pre-order rates on the major titles are encouraging, supported by our excellent range of exclusives."

 

Email this article to a friend

You need to be logged in to use this feature.

Please log in here

SELECT COUNT(`id`) FROM `news` WHERE `id` <> 25996 AND ()
You have an error in your SQL syntax; check the manual that corresponds to your MySQL server version for the right syntax to use near ')' at line 1

TAGS

Subscribe For Retail News

RETAIL EVENTS

The Retail Design Seminar 2018
The Retail Design Seminar 2018
14 November 2018
The Cavendish Conference Centre
The Retail Design Seminar 2018
Omnichannel Futures Conference 2019
Omnichannel Futures Conference 2019
6 February 2019
Cavendish Conference Centre, London WG1 9DT
A truly omnichannel offering requires an understanding of customer behaviour across all shopping channels and how this should impact your overall business strategy
Customer Engagement Conference 2019
Customer Engagement Conference 2019
5 June 2019
Cavendish Conference Centre, London W1
The 10th Annual Retail Customer Engagement Summit
AI in Retail Conference 2019
AI in Retail Conference 2019
18 September 2019
Cavendish Conference Center, 22 Duchess Mews, London W1G 9DT
Retail marketing is changing pace rapidly by making communication across all platforms personalised, relevant, efficient, and helpful. AI not only helps shoppers find a perfect product but also pre-empts the shopping behaviour and speeds up payment.
The HR Summit 2019
The HR Summit 2019
Tuesday 8 October 2019
The Cavendish Conference Centre, London W1
The 11th HR Summit 2019, The Cavendish Conference Centre, London W1, 8 October 2019
Fix The Dinosaur Roundtable 2018
Fix The Dinosaur Roundtable 2018
19 October 2018
The Euston Suite, The Hallam, 44 Hallam St, London W1W 6JJ
A Masterclass in IBMi Legacy Issues