GAME Profits Hit Record High In Full Year Results

Officials from UK based retailer GAME Group have released details of the company’s preliminary full year financial results, for the period ended January 31st, 2008. During this time, record pre-tax profits were recorded of £75.5 million ($149.0m) – an increase of 156 percent on the previous year. Total sales growth for the year rose by 86 percent to £1.49 billion ($2.94bn), with like for like sales up by 41 percent. The company’s expanding eCommerce business saw turnover increase by 147 percent, with operating profits up 61 percent. Continued expansion outside of the UK also saw significant results with international operating profits doubling from £6.1 million ($12.0m) to £13.2 million ($26.1m). A net total of 116 new stores were also opened, for a new total of 512 international stores - including franchises. Looking forwards, the company predicts that strong sales will continue on all formats, with supply issues improving for the Wii. The integration of recently acquired rival Gamestation into the company’s business is expected to result in revenue and cost synergies of around £7 million ($13.8m). The acquisition of Gamestation added 217 stores to GAME’s UK total of 649, with the focus for the 100 new store opens planned in the current financial year being in France, Spain and Australia. "This is a record set of results and clearly demonstrates that we've taken the right steps to expand the scale and geographic reach of our specialist offer to benefit from the broadening appeal of PC and video games products,” said chairman Peter Lewis. “This performance marks a transformational year with a significant improvement in a number of core business operations, further enhanced by the acquisition of Gamestation in the UK. In addition, we more than doubled international operating profits and increased eCommerce operating profits by over 60%, both of which continue to be a focus for growth.” “The unprecedented range of popular products has broadened the demographic appeal to new customers of all generations. It has also favourably altered the short and medium term outlook for our industry. With a large and growing installed base of hardware in the market, a strong line-up of new software launches and the benefits of full year ownership of Gamestation in prospect, the Board remains very confident in the outlook for the 53 weeks to 31 January 2009," he concluded.