14 Aug 2014 07:00
14 August 2014
Year End Trading Update
GAME DELIVERS A STRONG PERFORMANCE
GAME Digital plc ("GAME" or the "Group"), the specialist video games retailer, is today pleased to announce its year end trading update for the 52 weeks ended 26 July 2014. The period includes six weeks during which GAME traded as a publicly listed company, following its Admission to the Official List of the London Stock Exchange on 11 June 2014.
Following a solid second half performance, total sales increased by approximately 30% year on year, with cost discipline maintained throughout the period. The Board expects that underlying operating profit1 for the year ending 26 July 2014 will be in line with market consensus.
The Group ended the year with a net cash position in excess of £80 million driven by improvements in working capital, credit insurance and one off capital structure benefits due to the IPO.
Both GAME's UK and Spanish businesses performed well during the period, with each business gaining market share in their respective territories2, whilst the investment in the Group's digital content platform drove a strong digital market share through in-store and online sales.
The Group continues to invest in its integrated omni-channel offer, improving its in-store experience, website, mobile site and award-winning app, which most recently saw the launch of GAME Wallet, a new payment mechanism designed to significantly improve customer purchasing functionality.
During the period over one million new customers signed up to the Group's reward card programmes3, bringing the total membership across the UK and Spain to over 16 million.
The Board will announce preliminary full year results for the 52 weeks ended 26 July 2014 on 16 October 2014.
Martyn Gibbs, GAME Digital Chief Executive Officer, said:
"Our consistent focus on improving the Group's specialist customer proposition has delivered a strong performance and positions the business well for the future.
"We have great new physical and digital games being launched in the coming months and are working closely with our supplier partners to provide early trials, exclusives, deals and new and exciting ways to pay for all our gaming communities around the UK and Spain.
"On behalf of the Board I would like to thank all of our teams for their continued hard work and dedication and for the support of our customers and suppliers that make our community of gamers so valuable."
Enquiries:
GAME Digital PLC Martyn Gibbs | +44 (0) 1256 784 000 Chief Executive Officer |
Benedict Smith | Chief Financial Officer |
James Staveley | Investor Relations & Corporate Development Director |
Citigate Dewe Rogerson |
+44 (0) 20 7638 9571 |
Tom Baldock Grant Ringshaw
| |
1. Underlying operating profit is defined as pre-exceptional profit before interest, tax and amortisation of intangible brand value ("EBITA"). The median analyst consensus for EBITA for the 52 weeks to 26 July 2014 is £43.7m
2. GfK ChartTrack for the 52 weeks ending 26 July 2014
3. Includes UK Reward Card holders and Spanish Loyalty Programme members
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 through online, in-store, on mobile and its award winning app. With a market-leading reward proposition, incredible exclusive content and great deals, GAME is the number one destination for all gaming needs.
Launched in June 2014, GAME Wallet is a new purchasing mechanic which offer users of the GAME Reward app a simple way to combine and pay with Reward Card points, GAME Gift Card funds and trade-in credit into a single virtual wallet, allowing them to quickly and easily see how much they have to spend.
For more information please visit:
www.game.co.uk
www.gamewallet.co.ukwww.gamedigitalplc.com