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Trading statements

GAME encouraged by recent growth

23 August 2017 07:42

GAME Digital is encouraged by recent growth in both the UK and Spanish markets but said revenues on a statutory basis for the 52 weeks ended 29 July were expected to be approximately £780m compared with £822.5m in the 53 weeks ended 30 July 2016.

An update said: "As reported in the group's trading update on 30 June 2017, following the launch of the Nintendo Switch console in March 2017, both the UK and Spanish video games markets have experienced growth, with total mint market sales in the second half up 8.8% and 15.7% respectively in the UK and Spain, in local currencies.

"Adjusting for the impact of a weaker pound, the Spanish market rose 26.4% in sterling terms.

"Against this backdrop, the group's total gross transaction value rose 6.8% in the second half, to £325.4 million (H2 2016: £304.6 million) which resulted in total GTV for the full year to 29 July 2017 of £891.7 million (2016: £912.6 million)."

The group said it had continued to maintain a highly-disciplined approach to both working capital and cash management and given the recent improved sales performance expects to report an increased year end cash position (net of overdrafts) of approximately £47 million (2016: £43.1 million). I

n addition to this positive net cash balance, as at the year end the group had access to combined facilities across the UK and Spain of over £77 million.

Chief executive Martyn Gibbs said: "GAME has made further progress in the second half of the year as we continue to focus on developing our strategic initiatives whilst creating a new cost base for our UK retail business to address the challenges in the UK console market.

"We have been encouraged by the recent growth in both the UK and Spanish markets overall and we expect that this momentum will continue into peak trading driven by the benefits of continued customer demand for the Nintendo Switch, the launch of Microsoft's Xbox One X and a strong line up of new games releases.

"GAME has now opened 18 BELONG arenas, and we have seen encouraging early performance. We have reviewed our operations and are now accelerating development plans as we seek to fully capitalise on the strong growth potential in our exciting and growing esports activities."

Story provided by StockMarketWire.com

Related Company: GMD

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