• Financial information
• Share information
• Calendar
• Press releases
• Regulatory news
• Reports and presentations
• AGM
• Corporate governance
• Shareholder services
• Contacts and advisors

Interim Results for the six months ended 31 July 2009

23/09/2009

THE GAME GROUP PLC, Europe's leading retailer of pc and video games products, today announces half year results for the six months ended 31 July 2009.

Summary of results

All figures in £'m (unless stated)	Six months ended 31/7/09	Six months ended 31/7/08
Group turnover	690.8	742.6
Gross profit margin (%)	28.9	27.0
Operating profit before non-recurring costs	16.7	38.5
Non-recurring costs	3.7	3.0
Operating profit	13.0	35.5
Profit before tax	10.8	32.8
Profit before non-recurring costs and tax	14.5	35.8
Basic earnings per share before non-recurring costs (pence)	3.29	7.51
Basic earnings per share (pence)	2.23	6.63
Interim dividend per share (pence)	1.88	1.79
Trading store numbers	1,368	1,245
Trading square footage (sq. ft. thousands)	1,417	1,296

Financial highlights

• Total Group sales down 7.0% and like for like ('lfl') sales down by 16.3%
• Strong growth in gross margin, up 190 basis points ('bps')
• First half profit in line with expectations at £14.5m before non-recurring costs and tax (2008: £35.8m)
• Interim dividend up 5.0% to 1.88p
• Total sales in the 33 weeks ended 19 September 2009 down 8.8% and lfl sales down 16.6%

Operational highlights

• Dual brand proposition working well and on track to deliver full year synergies of £16m
• Revenues for preowned increased to £177.3m (2008: £157.8m) representing 25.7% (2008: 21.3%) of first half sales.
• Preowned gross margin up by 290 bps to 41.0%
• Online strategy progressing well, with 12.1% increase in revenues
• Continued focus on costs
• Strong balance sheet with minimal gearing, and refinanced facilities

Revised Guidance

• Gross margin growth guidance for the full year raised to 170 – 220 bps from 150 - 175 bps
  

Peter Lewis, Chairman, said:

"These were solid results for the Group. We have returned to more normal trading patterns where historically we have generated nearly all Group profits in the second half of the year.

We outperformed markets that showed year on year declines following last year's unprecedented sales of hardware and record breaking software launches.

Key elements of our business have shown resilience. We achieved year on year growth in preowned sales, which increased 12.3% and now account for 25.7% (2008: 21.3%) of total sales, and in our online business we increased revenues by 12.1%. Our Reward Card membership has increased by over 1 million customers since the start of the year to more than 13.3m.

We have increased total half year gross margins by 190 bps to 28.9%, with preowned margins up 290 basis points to 41.0%.

In the second half, the installed base of third generation consoles will continue to build. The recent manufacturer price reductions on the Microsoft Xbox 360 Elite and Sony's new model Playstation 3 are helping to stimulate the market for hardware. There is a broad and exciting line up of software and accessory products scheduled for all consoles before Christmas.

The retail environment continues to be tough. In uncertain times, our brand loyalty and our unique specialist proposition have never been more important. This, combined with our strict cost disciplines, the record console installed base and strong software line-up, means we remain optimistic for the key Christmas selling period."

- ends -

Enquiries
The GAME Group plc:	+44 (0)1256 784566
Lisa Morgan, Group Chief Executive
Ben White, Group Finance Director
Simon Soffe, Director of Investor Relations and Group Communications
Brunswick:	+44 (0)20 7404 5959
Jonathan Glass
Nina Coad
Oliver Hughes
www.gamegroup.plc.uk

View the full press release in PDF format.

Back to press releases for 2009

Top of page

Customers