GAME Profits Soar As New Stores Planned

[Tan]

From Gamasutra:


Officials from predominant British specialty video game retailer GAME have announced preliminary results for the company's full financial year, with profits up more than four-fold to £33 million ($66.1 million), and more than eighty new UK and international stores planned to continue the company's growth.

For the financial year ended January 31st, 2007 the company has revealed an overall operating profit of £33.0m ($66.1 million), up significantly from 2006's £8.2m ($16.4 million), with international operating profits of £6.1 million ($12.2m), up from £1.6 million ($3.2m) the previous year.

Sales for the company, which operates 834 stores in 9 countries, rose from £645.1 million ($1.29bn) to £801.3 million ($1.61bn), with like-for-like sales almost quadrupling from £4.2 million ($8.4m) to £16.2 million ($32.5m).

The retailer attributed the strong figures to the launch of the PlayStation 3 and a move into the Australian, Norwegian and Portuguese markets. A further eighty new stores are planned for the new year, alongside a further focus on growing the company's online sales.

Chairman Peter Lewis commented of the results: “During the year, the transition from mature technologies gathered pace - the Microsoft Xbox 360 and Sony PSP moved into free supply and we experienced the successful launch of the Nintendo DS Lite and the Nintendo Wii. The Christmas trading period was very pleasing, with strong like for like sales growth of 16% and a total sales increase of 21%."

"We have seen a strong start to the year, in what is traditionally a quiet sales period for GAME, thanks to the PS3 launch and hope to continue to build on our success throughout the year," added Lewis.
POSTED: 05.29AM PST, 04/25/07 - David Jenkins

[James]

But GAME sucks hard boiled eggs! Their new Xbox 360 games are £50, used are £35-40. You could get pretty much anything they sell for half the price online.

[The Metamorphosing Leon]

That's true of everything.

[Alabama-Shrimp]

they might be a bit expensive but they have a giant stock and its not full of pikeys or stink like all the Gamestation shops do

[James]

European retailer GAME has acquired its nearest High Street competitor Gamestation for GBP 74 million (EUR 108m).

The market leader now adds Gamestation's 217 stores to its group, and intends to keep the branding of both outlets separate.

"We are delighted to bring Gamestation into our portfolio and believe it has a strong future within the group," said GAME chairman Peter Lewis.

"The Gamestation business is one we have long admired and is complementary to our existing business in terms of both store portfolio and target customers."

"By investing in both brands we will further enhance the group's retail strategy while continuing to deliver and broaden our consumer reach. I am confident that this transaction will add considerable value to GAME and its shareholders over the coming years," added Lewis.

GAME lists Gamestation's standing amongst the more hardcore gamer as a key reason for the acquisition, compared to GAME's more mainstream offering.

GAME has unconditionally acquired the entire share capital of Gamestation for GBP 74 million, on a debt, cash and tax free basis.

For the year ended December 31, Gamestation reported revenues of GBP 203.5 million (EUR 298.7m) and profit of GBP 2.1 million (EUR 3.08m).

http://www.gamesindustry....ontent_page.php?aid=24681