Game profits slip during first half
Updated on 02 July 2009
Retail group Game said half-year profits will be as much as 64% lower after figures last year were boosted by blockbuster releases.
In an update on first half trading, Game said like-for-like sales in the 21 weeks to Saturday were down by 15.8% in the UK.
It said this performance was in line with expectations after very strong sales in the comparative period a year ago, when sales were boosted by demand for games such as Mario Kart, Wii Fit and Grand Theft Auto IV.
The company expects profits for the half year of between £13 million and £16 million, compared with £36.4 million a year earlier.
However, it said it was looking forward to a "very encouraging" line-up of software releases in the second half, including Wii Fit Plus, DJ Hero and annual sequels to best-sellers such as Pro Evolution Soccer.
The company said it planned to open 50 to 60 additional stores before Christmas, mostly in its international business. It currently has 1,367 outlets, including 698 in the UK and Ireland.
While Game said it remained confident in the outlook for the year to January 31, shares fell more than 10% as analysts worried that Game had left itself with much to do over the second half of the year.
Singer Capital Markets said: "Against our full year assumptions for full-year profits of £121 million the performance in the second half is now looking quite stretched, and assumes a significant pick up in like-for-like trends and sales transfer from failed competition such as Woolies and Zavvi.
"There is now little room for disappointment," Singer added.
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