GameStop Corp (NYSE:GME) has reported a bigger-than-expected loss and quarterly revenue that missed estimates as the videogames retailer was hurt by a lack of new hit releases and a pullback in consumer spending.
GameStop posted revenue of $1.19 billion in the third quarter, missing estimates of $1.36 billion, according to Refinitiv IBES data. On an adjusted basis, the company lost 31 cents per share, compared with analysts' estimates of a loss of 28 cents per share.
GameStop's expenses as a percentage of revenue was 32.7% in the quarter, down from 34.1% in the second quarter, as the company tried to cut costs by reducing its workforce and shutting down stores.
READ: GameStop and FTX US form partnership amid deepening losses for video game retailer
"We anticipate capital expenditure will remain at similar or reduced levels now that the company has largely completed its period of heavy investment," GameStop chief executive Matt Furlong said in the earnings statement.
Earlier this year, GameStop launched a digital wallet to enable transactions in a marketplace it is building for gamers and others to buy, sell and trade non-fungible tokens, or NFTs. However, with the collapse of crypto platform partner FTX, GameStop's digital wallet ambitions look to have a tough future.
A meme favourite, GameStop shares were up about 1% to in after-market New York trading.
Contact the author at jon.hopkins@proactiveinvestors.com