logo-loader
viewGame Digital PLC

Game Digital's first half profits fall as it expands e-sports offering and closes stores

Game Digital said its Belong gaming arenas will lead to a more successful performance in fiscal year 2019 and beyond

Game Digital
Game Digital's revenues were lifted by retail sales growth in Spain and in e-sports

Game Digital PLC (LON:GMD) posted a 25.5% decrease in first half pre-tax profit as the company expanded its e-sports offering and closed down stores.

Pre-tax profit fell to £12.3mln in the six months to January 27 from £16.5mln the same period a year ago.

Revenue increased 3.9% to £517.4mln from £498.1mln as a decline in UK retail sales was mitigated by growth in Spain and in the events, e-sports and digital division.

The company has been expanding its e-sports offering with its Belong in-store gaming arenas, which allow consumers to pay to play games on PCs and the latest consoles.

Game Digital has entered into a deal with Sports Direct to roll-out Belong gaming across a number of stores. Sports Direct has agreed to pay £3.2mln in cash for 50% of Belong's intellectual property and 50% of profits from new and existing locations.

READ: Game Digital to put retail outlets, gaming areas into Sports Direct stores

Game Digital said Belong will lead to a more successful performance in fiscal year 2019 and beyond.

The company has also been repositioning the business in response to a growing shift away from buying video games in store to making purchases online.  It closed 12 stores in the UK and three in Spain during the first half. 

Quick facts: Game Digital PLC

Price: - -

LSE:GMD
Market: LSE
Market Cap: -
Follow

Add related topics to MyProactive

Create your account: sign up and get ahead on news and events

NO INVESTMENT ADVICE

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...

FOR OUR FULL DISCLAIMER CLICK HERE

Watch

Full interview: Eckoh PLC doubles its US revenues with 'more to come', says...

Eckoh PLC's (LON:ECK) Nik Philpot talks Proactive through their results for the six months to September 2019. The group enjoyed significant commercial traction in the US, where revenues doubled and, since period end, they've landed a deal with an unnamed Fortune 100 retailer. For the group...

9 hours, 59 minutes ago

2 min read