Europe's leading videogame retailer has reported record first half profit for the six month period ended July 31, 2008.
Operating profit before non-recurring costs and tax hit £36.4 million, up from £2.7 million for the same period last year, as sales grew 54.1 percent, and 22.2 percent on a like-for-like basis.
Group turnover totaled £743.4 million, up from £482.4 during the first half of 2007.
“The business has performed extremely well with both turnover and profit growth throughout the group,” said Game chairman Peter Lewis.
“We deliver a compelling customer experience. Our specialist proposition is centered around customer service, our pre-owned offer, our Reward Card and our online capabilities, all of which have contributed to this success.
“The third generation consoles are all in good supply. Demand has continued to be strong and the installed console base now stands at over 17.3 million in the key UK market. This level of console ownership has been achieved in just three years compared to second generation consoles which took a seven year period from 2000 until 2007 to reach similar levels.”
Lewis also said that he remained upbeat about the company’s prospects in spite of wider economic uncertainty.
“We recognize the extraordinarily challenging and uncertain market conditions in which we are operating today, and we cannot be immune to wider economic uncertainties,” he said.
“However, we continue to be encouraged by the ongoing demand for third generation hardware and software which is in part being driven by the broadening demographic appeal. In addition, playing games provides a more affordable alternative to many other family leisure activities and we remain committed to delivering our customers the widest choice and value for money.”
Lewis’s positive outlook is backed up by recent trading levels – the company has witnessed a sales increase of 14.6 percent, and like-for-like sales increase of 4.9 percent, for the eight weeks to September 20.
The firm also said that acquisitions in the Czech Republic and expansion in the UK will see Game’s store portfolio surpass 1,300 by the Christmas trading season, compared to 1,150 at the same time last year, while its acquisition of Gamestation is expected to generate £9 million during 2008, up from the company’s prior projection of £7 million.
In light of its strong performance Game raised its guidance for full year like-for-like sales from 5-10 percent to 8-12 percent.