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Game Group Posts Record First Half Profit

Tom Ivan's picture

By Tom Ivan

September 30, 2008

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"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"

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.

M3lm0th's picture
On September 30th M3lm0th said:

Record First half profits based upon...

A top class Pre-owned facility that allow's Game to really give something back to their customers. Buying back games for less than half price before selling them back with a PRE-OWNED sticker for a couple of pound short of full retail. THANKS GAME

A classy price match promise that exludes any retailer that dares to sell games at a price that Game deams a loss leader. Oh and dont forget that even if the competitor retailer isnt excluded you will have to deal with some gems such as "we know that shop has no stock left so you cant get it" even if you were only moments ago in said shop and saw multiple copies. GAME WILL YOU HAVE MY BABIES!?

A fantastic website that shows you these great competitive prices (normally £5 pound more than most) but at no point tells you that these prices do not apply in store. So if your foolish enough to make that trip get ready for the £10 addon.
**NOTE** This feature is particularly great in the "xmas sales" as only 5% of the Game xmas sales advertised on their website is actually available in store. GAME I LOVE YOU!

A Breathtaking Reward card system. You are £2 or £3 short to buy a game but you have that much on your Reward card? Well get that puppy out and be prepared for the classic DENIED I'm afraid you can only use the reward card for a minimum of £5 so get spending that £500 to get your £5. GAME YOU BRING ME TO TEARS WITH LOVE AND HUMANITY

Last but not least a compelling experiance (as Peter Lewis put it) that uses a remarkably small shop space (I would call it a HUT but that may be unkind to alotments around the globe) but still manages to squeeze in more games than you can shake a stick at which always allows for those massive queues as you await your turn at what I like to call the "Spotty geek till of boredom" This is what you encounter after you have made you choice that you want to buy and then join the queue to pay for it. As you stand paitently waiting for 30mins to get to the till (This is normaly due to some immigrant trying to trade in a CareBear for Fireman Sams learning adventure on the Acorn+) You notice that all the staff have an unsual amount of spots and grease, have I somehow ended up in a Mcdonalds queue you ask yourself? But then no you hear them snigger at some warcraft joke and you finally arrive at the till to get ripped off.

GAME I WISH YOU WERE MY FATHER.