15 Sep 2014 14:59
15 September 2014
GAME Digital to take on portfolio of Spanish stores from GameStop
Strengthening its position as the leading specialist retailer of video games in the UK and Spain, GAME Digital plc ("GAME" or "the Group") is pleased to announce that following the strategic decision taken by GameStop Corp ("GameStop") to exit the Spanish market, it has reached agreement in principle with GameStop for the transfer to GAME's ownership of a portfolio of GameStop stores located in Spain.
On completion of the transaction, GAME will assume the leases, staff and inventory associated with each store transferred as well as all remaining inventory held by GameStop in Spain. The stores will be converted to GAME branded stores and customers of the closed stores will be directed to their nearest GAME outlet.
In order to ensure continuous support for the gaming community in Spain, GAME will fulfil all customer pre-orders placed with GameStop in Spain and, in addition, all reward card points and gift vouchers held by GameStop's customers will be redeemable exclusively at GAME stores. GameStop currently has over 470,000 PowerUp rewards members in Spain.
GameStop's Spanish website will close and customers will be redirected to GAME's Spanish website (www.game.es).
The proposed transaction is subject to approval by the competition authorities in Spain, which is expected to be completed by the end of October. The terms of the transaction are undisclosed.
The transaction is expected to be broadly neutral to the Group's earnings in the current financial year. Once the integration of operations have been fully implemented, the transaction is expected to have a modest beneficial effect on earnings in the following years.
Commenting, Pablo Crespo, Director General of GAME Spain, said:
"We have worked closely with GameStop to help facilitate their exit from the Spanish market whilst ensuring continued support for their customers and the Spanish gaming community as a whole.
"The stores we are seeking to take on will help us to serve and engage with even more gamers and gaming communities across the country."
Martyn Gibbs, CEO, said:
"We have a clear strategy to grow our business profitably in the UK and Spain. This transaction is an attractive opportunity for us, strengthening our position as the leading specialist retailer of video games in Spain as we continue to build the most valuable community of gamers."
Enquiries:
GAME Digital plc +44 (0) 1256 784000
James Staveley, Investor Relations and Corporate Development Director
Citigate Dewe Rogerson +44 (0) 20 7638 9571
Grant Ringshaw
Jos Bieneman
Notes to editors:
GAME Digital plc is the leading specialist omni-channel retailer of video games and gaming-related products in the UK and Spain. GAME is committed to delivering for the gaming communities of the UK and Spain online, in-store, on mobile and through its award winning app. GAME has over 16 million reward card holders in the UK and Spain. In June 2014, GAME completed a successful listing on the main market of the London Stock Exchange.
GAME currently has 321 stores in the UK and 235 stores in Spain, where the brand has been present since 2001. For the 12 months ended 31 January 2014, GAME's Spanish business recorded revenues of £205.2 million and EBITDA of £6.7 million.