Game’s first half profits down 26.7%
Game Digital has reported a fall in first half revenue and profit but said trading in the first few weeks of the second half of the financial year has been “positive”.
In the six months to 28 January, pre-tax profit declined to £16.5 million from £22.5 million in the previous year as group revenue fell by 9.1% to £499 million.
Game said it delivered a strong performance in digital and new VR technology sales but that the first half of the year had been a “tough” period for console hardware and physical software sales in the UK. This was due to a weaker line-up of new games launches and the market-wide underperformance of certain key titles.
The company is working to improve its performance in the UK through organisational efficiencies and cost saving measures which include a review of Game’s store footprint and reducing property costs. It is also exploring opportunities to open new concession locations.
Game said it is pleased with the positive trading performance delivered in the first few weeks of the second half.
The company’s chief executive Martyn Gibbs added:”Although we expect industry-wide challenges in our core Xbox and PlayStation categories to continue, we anticipate the overall UK market to remain positive during the rest of 2017, underpinned by the successful launch and continued consumer demand for the Nintendo Switch, the planned launch of Xbox Project Scorpio and a stronger slate of new titles later in the year.”
