“GAME widens loss in H1
UK-based Game Group has reported results for the six months ended 31 July and described 2011 as “a very tough year for the video games industry”. Group turnover declined 10.6% to GBP558.8 million (USD907.02 million) and like-for-like sales fell 9.9%, which the company said reflected difficult market conditions. In the UK and Ireland, sales fell by 13.3% and by 11.2% on a like-for-like basis. The company more than doubled its pre-tax loss to GBP51.5 million (USD 83.59 million) from GBP21.5 million (USD34.89 million) during the first six months of 2010. Its operating loss widened to GBP48 million (USD77.91 million) from GBP18.8 million (USD30.51 million).
The company said that it had increased market share in a difficult climate as it focused on delivering on its revised strategy. However, in the longer term the company recognised the need to “enhance its position” and anticipated that new ways of playing games including digital, online and cloud-based gaming would increase in significance. Game partly blamed the lack of major software releases during the period for the decline and said that sales of the Nintendo 3DS console fell below expectations. The company recognised that the next 10 weeks would be a critical period as the Christmas season accounts for around 40% of annual sales. Game Group has closed 26 stores since the start of 2011.”
Fonte: Planet Retail