Defiant CEO insists Game Group will survive
Ian Shepherd, CEO of Game Group, the UK's largest specialist videogame retailer, has insisted the company will survive despite its lowered earnings forecasts and plummeting share price.
Speaking to MCV, Shepherd said: "It is very easy to look at any retailer on the high street and write an apocalyptic headline. Our market share is high and growing. Game is very important to the overall health of the videogame industry."
Last week the company revised its earnings forecasts, predicting revenue for the full year would fall by at least seven per cent. Analysts then predicted Game would be hit with an annual loss of £10.7 million, and its share price fell by 57 per cent in five days of trading.
"We are also a strongly cash generative business," Shepherd said. "Even with the guidance we have given now, where industry analysts are concluding that we will probably make a loss this year. Even in that circumstance we will still generate operating cashflow. And cash is king.
"If you come into this business, you will see a whole bunch of people working incredibly hard to grow new revenue streams. To do all of the strategic things that we have done in and around our stores has been an immense amount of change for this business. Our performance in the market I will hold up against anybody else."