GAME Digital (LON:GMD) reported its half-year results on Thursday morning, causing shares to bounce.
The company reported a pre-tax profit of £14.8 million for the period, an increase of 20.3% compared to a year ago.
Meanwhile, revenues fell 4.7% to £492.9 million during the six-month period.
GAME’s gross transaction value (GTV) fell by 1.4% to £578.4 million.
However, gross profit rate had remained steady at 21% of GTV.
Adjusted earnings before interest, tax, amortisation and depreciation increased 21.7% to £25.8 million.
Martin Gibbs, chief executive, commented on the interim results:
“…Despite the market backdrop, the Group delivered a solid GTV performance and maintained its gross profit rate. Exclusives on new game releases, sales growth in higher margin categories and focusing on our multichannel and specialist customer offerings helped to offset a weaker console hardware market and the continued structural decline of the preowned market.”
“During the period the UK Retail business delivered further efficiency improvements and achieved considerable cost savings across all areas including store operating and fixed costs, distribution and head office costs. Our flexible lease profile gives us a unique opportunity to work closely with landlords to manage our store portfolio and we continue to deliver, and anticipate ongoing, rent reductions.”
Shares in GAME digital are currently -2.26% as of 11:14AM (GMT).
