Shares in gaming chain GAME Digital (LON:GMD) have plummeted over 30 percent this morning, after a trading update detailed disappointing performance in the pre-Christmas period.
Total transaction value came in at £466.8 million, down 6.7 percent due to a 20 percent reduction in low margin console sales. However, performance was boosted by growth in GAMEtronics, their pre-owned mobile and tablet range, which was up 91.8 percent on the year.
Overall, the group’s UK gross trading margin was down 4.8 percent at £73.9 million, with the company admitting that trading conditions in the market had been challenging. Martyn Gibbs, GAME Digital’s Chief Executive Officer, said in a statement:
“The switch over from the older gaming formats to PlayStation 4 and Xbox One software has impacted profitability across the UK market.
“Despite the market challenges, GAME has continued to deliver significant growth from new format content and newer categories such as licensed merchandise and preowned mobile phones and tablets, and we continue to prioritise these areas as well as growing our Multiplay business.
“The pre-Christmas period and the winter sale are very important to our customers and with market leading offers we remain well prepared in our stores and online for the remaining peak trading period.”
GAME Digital is currently trading down 38.18 percent at 127.20 pence per share. (1422GMT)