Press releases
Interim Results for the six months ended 31 July 2011
27/09/2011
THE GAME GROUP PLC, Europe's leading retailer of pc and video games products, today announces Interim Results for the 26 weeks ended 31 July 2011.
Commenting on the results, CEO Ian Shepherd said:
"2011 has been a very tough year for the video games industry. A combination of a cyclical low point in the industry itself and unprecedented macro-economic conditions have led to significant market revenue declines.
GAME Group has increased market share in this difficult climate as we have focussed on delivering our strategy. Nonetheless, the impact of the wider market can be seen on our first half results.
Like many other retailers, we believe that trading conditions will remain tough for the remainder of the year, and have set our plans accordingly. We are determined to again outperform a difficult market this Christmas, by using our unique specialist position to give customers the very best choice and value.
For the future, we are investing for a different video games market, with new games consoles coming to market and customers exploring new ways of playing games, including digital; online; and cloud-based gaming. The Group, through its Dedicated to Gaming strategy initiatives, is taking a leading role in these developments in order to benefit from market recovery in the coming years."
Key points
Financial:
- Group lfl down 9.9%, reflecting tough market conditions
- Increased market share in period
- Focus on generating cash and strong balance sheet in second half
- Interim dividend maintained
- Store closures on track
Operations
- Strategic progress, including accelerating digital sales and robust preowned business
- High quality Christmas software line-up
- Prepared for key Christmas selling period
| Financial Overview All figures in £'m (unless stated) | 26 Weeks ended 31 July 2011 | 26 weeks ended 31 July 2010 |
|---|---|---|
| Group turnover | 558.8 | 624.6 |
| Gross profit margin (%) | 24.3 | 26.0 |
| Operating loss before non-recurring costs | (45.0) | (16.1) |
| Non-recurring costs* | (3.0) | (2.7) |
| Operating loss | (48.0) | (18.8) |
| Loss before non-recurring costs and tax | (48.5) | (18.8) |
| Loss before tax | (51.5) | (21.5) |
| Basic earnings per share before non-recurring costs (pence) | (9.86) | (3.66) |
| Basic earnings per share (pence) | (10.72) | (4.44) |
| Interim dividend per share (pence) | 1.88 | 1.88 |
| Trading store numbers (including franchises) | 1,287 | 1,338 |
| Trading square footage (sq. ft. thousands) | 1,344 | 1,394 |
| H1 sales analysis | 26 weeks to 31 July 2011 | |
|---|---|---|
| Total sales (%) | Lfl sales (%) | |
| Group | (10.5) | (9.9) |
| UK & Ireland stores | (12.0) | (10.0) |
| International stores | (10.2) | (11.4) |
| Group Online | 2.3 | |
*Non-recurring costs relate to strategic store change programme
| Current trading sales analysis | 34 weeks to 24 September 2011 | |
|---|---|---|
| Total sales (%) | Lfl sales (%) | |
| Group | (11.4) | (10.4) |
| UK & Ireland stores | (13.3) | (11.2) |
| International stores | (10.1) | (10.8) |
| Group Online | 0.4 | |
Enquiries:
| The GAME Group plc: | +44 (0)1256 784566 |
| Ian Shepherd, Group Chief Executive | |
| Ben White, Group Finance Director | |
| Simon Soffe, Investor Relations and Group Communications Director | |
| Brunswick: | +44 (0)20 7404 5959 |
| Jonathan Glass, James Olley, Natalia Marisova |
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