UK-based specialty retailer GAME has announced record sales of £1.97 billion ($2.88bn), with operating profits up by 68.3 percent, also revealing that pre-owned games make up almost 18 percent of total sales.
UK-based retailer GAME has announced record sales for the financial year ended January 31st, with operating profits up by 68.3 percent to £126.5 million ($185m). Revenues for the group were up by 32.2 percent to £1.97 billion ($2.88bn) and like-for-like sales rose by 8.8 percent. UK operating profits (not including non-recurring items from the acquisition of Gamestation) were up 63 percent to £112.7 million ($165m), with international profits up 54 percent to £20.4 million ($30m). Particular gains were seen in online sales, which rose by 85 percent during the year, on a profit rise of 109 percent. In a video interview, group chief executive Lisa Morgan also revealed data for pre-owned sales for the first time. Describing them as a “vital part of our business”, Morgan added that “it represents nearly 18 percent of our total sales and this is growing.” She did not reveal the percentage of profit pre-owned generated, though -- likely to be significantly more than 18%, due to the higher margins on used games. Although current trading conditions were described as “slightly better than expected”, Morgan also indicated that the group is reducing overall capital expenditure – despite plans to open around 70 to 80 new stores this year. In addition, recent data revealed a definite slowdown in growth compared to last year - for the 11 weeks to April 18th, total revenue was up by 1.0%, with like for like sales down, "against very strong comparatives", by 6.3%. Nonetheless: “These were exceptional results for the group,” said chairman Peter Lewis in a separate statement. “The principal drivers have been third generation formats with many products now having a wider demographic appeal, the further development of our specialist credentials, successful international expansion and the many benefits arising from our acquisition of Gamestation.” “The Board is confident in the outlook for the year to 31 January 2010,” he added. The company’s share price has jumped as much 13 percent following the results.
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