Press releases
“GAME” – Interim Results announcement for the six months ended 31 July 2005
27/09/2005
THE GAME GROUP PLC, Europe’s largest specialist retailer of pc and video games software, today announces interim results for the six months ended 31 July 2005.
FINANCIAL OVERVIEW
| All figures in £’m | Six months ended 31/7/05 |
Six months ended 31/7/04 |
|---|---|---|
| Group Turnover | 220.8 | 213.0 |
| Gross profit margin (%) | 28.9 | 30.3 |
| Operating loss before exceptional costs | 10.3 | 3.6 |
| Loss before tax | 14.7 | 3.5 |
| Basic loss per share before exceptionals (pence) | 2.31 | 0.73 |
| Basic loss per share | 3.19 | 0.73 |
| Interim dividend per share (pence) | 1.15 | 1.00 |
Key points
- Accelerated store opening programme in Continental Europe with over 295 own and franchise stores and 410 stores in the UK expected to be trading for the key Christmas season
- As anticipated like for like turnover in the first half down by 5.4% resulting from the lack of major releases in the first half and the generally tough retail environment
- Increased interim dividend by 15% reflecting the Board’s confidence in the future
- Successful launch of Sony PSP launched on 1 September with demand still exceeding supply albeit subsequent replenishment has been limited
- Improved trading performance with like for like sales down by 4.4% since 1 August 2005 and total Group sales up by 4.3%
Peter Lewis, Chairman, said:
“As I outlined in April and in our trading update in July, 2005 has been and continues to be a transitional year. The significant price deflation as the current generation of consoles reach maturity, the lack of hardware launches and the tough retail environment have resulted in significant first half losses.
We have made strategic investments of £17.2m in the infrastructure of the business through new store openings, store refits and the continued expansion in Europe to cement our market leading position ahead of the next generation console launches. The second half offers better opportunities given the strong launch sales of PSP and the solid Christmas software lineup.
The benefits of our investment will come through beginning in 2006 with a steady supply of the Sony PSP, Microsoft Xbox 360, the first next generation console which launches in December 2005, then the Sony Playstation 3 and Nintendo Revolution set to follow. These new platforms will greatly increase demand for video games and the Board's confidence in the Group's future is reinforced by the decision to increase the interim dividend by 15%.”
Enquiries
| The GAME Group plc | Martin Long Group Chief Executive |
+44 (0)1256 784085 |
|---|---|---|
| David Thomas Group Finance Director |
+44 (0)1256 784085 | |
| Brunswick | Jonathan Glass Wendel Verbeek Ash Spiegelberg |
+44 (0)20 7404 5959 |
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