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Interim Results

GAME Digital pre-tax profits fall

29 March 2017 07:54

GAME Digital's statutory pre-tax profits fell to £16.5m in the 26 weeks to 28 January - down from £22.5m last time.

Revenues were 9.1% down at £499.0m and gross profits of £123.4m were 5.6% lower.

Group gross transaction value of £566.3 million was down 6.9% and adjusted EBITDA fell by 29.6% to £23.3m.

Chief executive Martyn Gibbs said: "We delivered a strong performance in digital and new VR technology, however our first half saw another tough period for console hardware and physical software sales in the UK, impacted by a weaker line-up of new games launches and the market-wide under-performance of certain key titles.

"Together, these dynamics resulted in a disappointing performance from our UK retail operations, however our Spanish operations and new business areas delivered further growth. "We continue to prioritise our efforts on taking the necessary actions to respond to these challenges, whilst positioning the business to capitalise on major future market opportunities.

"Across the Group we are working hard to improve operational efficiencies and reduce costs whilst implementing our GAME Changing strategy to reposition and transform the business, and I am encouraged with the progress we are making.

"We delivered another positive performance across our focus retail categories in the half, including digital content, preowned tech, and PC gaming.

"We also made significant progress developing our live in-store gaming proposition under our new BELONGTM brand, with encouraging results from the first seven arenas, and as a result we are accelerating our investment and implementation of this initiative.

"Overall we more than doubled sales from our growing Events, Esports and Digital activities.

"We have been pleased with the positive trading performance delivered in the first few weeks of the second half.

"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."

Story provided by StockMarketWire.com

Related Company: GMD

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