Game Group shares slump after revenue drop
Shares in Game Group fell by over 36 per cent yesterday after the UK's largest specialist game retailer reported a drop in Christmas sales.
When trading began yesterday, a share in Game cost 5.99p; by the end of the day, after Game had revealed that sales in the final five weeks of the year were down 14.7 per cent, its stock price had fallen to 3.8p – a drop of 36.6 per cent.
It's no great surprise, of course, but further evidence of Game's decline. Yesterday it admitted it was in danger of failing to meet its EBITDA targets, which are used to gauge a company's ability to cover its debts.
At least it's an improvement on November, when the retailer's stock tumbled 57 per cent in just five days. It seems unthinkable now, but Game's share price a year ago today was 65.5p; the year before it was 105.9p. The company's stock has fallen a further ten per cent today, with its share price at the time of writing just 3.4p.