Game Digital (GMD)
GAME Digital's Christmas trading slips
GAME Digital's gross transaction value fell by 6.3% in the 23 weeks to 7 January and by 1.6% in the three week Christmas period.
The group said that excluding lower margin hardware, group GTV rose 2.0% in the key three week Christmas trading period, with GTV up 0.7% over the 23 week period.
It said strong growth was achieved in the group's new retail categories (including digital content, PC gaming accessories and virtual reality headsets), with GTV up 31% in the 23 week period.
Chief executive Martyn Gibbs said: "Trading conditions in the UK video games market remain tough, with lower console sales, and we continue to take appropriate actions to respond to these market dynamics and to reposition and transform the business.
"Overall demand for new games released in the period was lower than expected but we were pleased with the Group's performance over the peak weeks of Black Friday and Christmas, with GTV excluding lower margin hardware sales up 2% year on year.
"Furthermore, over the period we continued to deliver significant operational efficiencies and cost savings whilst achieving strong growth in our new retail categories and new businesses.
"We remain focused on achieving further progress against these key strategic priorities in the year ahead.
"We have been pleased with the customer reaction and initial performance of our new in-store gaming arenas, under our new BELONGTM brand.
"We have also continued to see the broadening of our partner base and growing support for this strategic initiative.
"As a result, we have taken the decision to extend the roll out of this exciting new proposition, ensuring that we can bring the opportunity to play, experience and compete through us, both in store and online, to as many gaming fans as possible.
"Looking ahead, we are encouraged by the strong consumer anticipation which is building for the launch of the Nintendo Switch console in March this year, and beyond that to the launch of Xbox's Project Scorpio later in the year.
"We expect these new consoles to drive interest and activity in our core console markets, as well as open up new growth opportunities for our business."
At 3:32pm: (LON:GMD) Game Digital share price was -1.75p at 58.25p
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|Last Update: 17:35:54 (23/02/18)|