11th Aug 2015 06:35
LONDON (Alliance News) - GAME Digital PLC Tuesday said it achieved "robust trading" in the second half of its financial year and said that is expects to deliver adjusted earnings before interest, tax, depreciation and amortisation in line with market consensus for the full year.
The video game and console retailer said it made a good uplift in gross margin and a positive Ebitda contribution in line with expectations in the half year ended July 25, ahead of the breakeven Ebitda reported in the second half of the prior year.
Revenue excluding hardware grew 7% in the period, with gross margin on content sales up by over 300 basis points, boosted by a significant increase in digital sales. Hardware revenue, however, declined 19% due to lower average selling prices following an initial surge in sales after the launches of Xbox One and PlayStation 4.
Overall margin was up over 200 basis points in the period given the higher mix of higher margin product sales and lower mix of lower margin hardware sales, GAME said.
"Our preparations for this year's peak trading season are already well advanced. The line-up of new physical and digital games launches in the coming months looks very strong and our pre-order rates on the major titles are encouraging, supported by our excellent range of exclusives," Chief Executive Martyn Gibbs said in a statement.
By Karolina Kaminska; [email protected] @KarolinaAllNews
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