15th Oct 2015 07:01
LONDON (Alliance News) - GAME Digital PLC Thursday reported a huge rise in pretax profit in its recently-ended financial year as it recovered from the costs associated with its IPO last year and it achieved growth in sales of higher margin products.
The video game and console retailer said its pretax profit in the year ended July 25 grew to GBP25.8 million from GBP7.3 million the year before, as revenue rose 0.6% to GBP866.6 million from GBP861.8 million.
The large boost in profit was down to the fact that the prior year was hit by its IPO and related exceptional costs of GBP8.4 million. Sales, meanwhile, were driven by the growing installed base of Xbox One and PlayStation 4 console owners, a strong exclusive product offering and the continued diversification of its product range, as it grew sales of higher margin products.
GAME added that trading so far in the current year has been in line with expectations, with the UK business outperforming the market, although it did say that the market on the whole is currently down on the prior year due to lower hardware sales.
The group's Spanish business is also performing strongly and ahead of the market.
GAME said it will pay a final dividend of 7.35 pence, having not paid one the year before, giving a total of 29.4p for the year.
"Looking forward, with the growth opportunities available, particularly in Multiplay, we are committed to growing our businesses and increasing our investment in both capital projects and our operating cost base. We believe we are well prepared for Black Friday and the peak Christmas season, with a strong, specialist customer offer across all product categories," Chief Executive Martyn Gibbs said in a statement.
By Karolina Kaminska; [email protected] @KarolinaAllNews
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