Console sales propels Game into the black
Computer games retailer Game returned to profit today as it geared up for the Christmas trading season with an upbeat set of half-year results.
The launch of new consoles, including the much-anticipated PlayStation 3, provided Game with a strong market in the six months to the end of July, with profits of £1.3 million (€1.85m) contrasting with losses of £7.1m (€10.1m) in 2006.
The group, which will trade from 1,120 stores during the festive season, said business had also been strong in the following eight weeks, although it said margins were lower because of a greater proportion of hardware sales.
During the period the group opened or acquired 286 stores, including 217 through the £74m (€105.8m) acquisition of Gamestation. That deal is still the subject of uncertainty after it was referred to the Competition Commission.
The two businesses will be operated separately ahead of the Commission's decision on the case, which is expected in January.
Game said its improved performance, when like-for-like sales rose by 45.6% in the half-year, came despite an increasingly competitive environment in the UK, as many retailers added space for games products and online firms also sought a greater share of the market.
The company said: "The market for the retail of PC and video games products is very strong, driven by the current console technology cycle, and all participants are seeing good sales growth.
"We have worked hard over the last few years to position Game ahead of this new technology cycle by emphasising our specialist credentials including our breadth of range, in store services and loyalty card with millions of members."
Excluding Gamestation, Game operates 410 stores in the UK and Ireland, with another 427 in continental Europe and Australia.
