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Game Digital shares recover after financials beat expectations

UK retailer Game Digital saw its share price surge upwards today after the company posted better-than-expected financials for the full-year ended July 29, 2017.

UK retailer Game Digital saw its share price surge upwards today after the company's financials for the full-year ended July 29, 2017, exceeded expectations by showing signs of growth.

As reported by the Telegraph, shares in the company are now selling for 33.12 pence - which is an increase of 34.5 percent.

While that's good news for the retailer, it's worth remembering share prices actually dropped by 30 percent to 23 pence at the end of June

Looking at the firm's financials then, full-year sales rose by 0.1 percent thanks to the performance of the company's Spanish division. Though sales in the UK actually dropped off by 6.8 percent.

Revenue was down by 2.3 percent across the board, despite a 22.7 increase over in Spain. Once again, that's because the UK division -- which saw revenue fall by 12.1 percent -- failed to deliver the goods. 

Still, if you take the second half of the year on its own, things start to look more positive. Over the past six months sales actually increased in both the UK and Spain, driving half-year revenue up by 6.8 percent to £325.4 million ($416.2 million).

The company expects that momentum to continue thanks primarily to the sustained consumer demand for the Nintendo Switch. It also hinted it might try and raise more cash through the sale of assets like its Multiplay Digital division, which offers sever-hosting technology and services to game devs. 

"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," said company CEO, Martyn Gibbs.

"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."

 

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