GAME Digital Suspends Interim Dividend On BELONG Investment Plan

27th Mar 2018 10:51

LONDON (Alliance News) - GAME Digital PLC on Tuesday said it will not pay interim dividend, as it plans further investments in revenue accelerating BELONG segment.

The video games and consoles retailer posted pretax profit of GBP12.3 million for the 26 weeks to January 27, down 26% from GBP16.5 million for the same period in 2016.

Revenue rose 3.9% to GBP517.4 million from GBP498.1 million the prior year, after group improved its sales performance in the UK and Spanish businesses.

GAME Digital said it delivered a "pleasing" improvement in the sales performance from the UK, including Events, Esports & Digital devision and Spanish business.

Revenue in Spain retail grew 11% to GBP188.5 million from GBP170.2 million in 2016.

UK Retail saw minor revenue decline by 0.1% to GBP320.0 million from GBP320.2 million, but this was more than offset by revenue increase in Events, Esports & Digital division.

In December, the company launched BELONG in seven of its stores, which driven Events, Esports & Digital sales up 16% to GBP8.9 million from GBP7.7 million the year earlier.

GAME Digital said it will not pay interim dividend, as it plans to increase investment in its BELONG concept. The year before, the group declared interim dividend of 1.0 pence.

The company also highlighted that it saved GBP5.0 million across its UK Retail operations, as it reduced in store payroll ans property related costs by GBP1.6 million each. GAME Digital also said it saved GBP1.6 million on another cost reductions.

The group also cut the total number of operating stores to 566, from 581 it had the prior year.

GAME Digital Chief Executive Martyn Gibbs said: "We continue to negotiate property savings and, where appropriate, close stores, rationalise retail working hours and deliver further operational and procurement benefits as well as focus on our core retail opportunities including a large array of new software releases particularly during the final quarter of the 2018 calendar year."

The stock was up 2.5% at 24.60 pence per share on Tuesday.

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