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GAME Digital PLC (GMD)

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Wednesday 13 January, 2016

GAME Digital PLC

AGM Statement and Trading Update

RNS Number : 6624L
GAME Digital PLC
13 January 2016
 

13 January 2016

 

GAME Digital PLC

 

AGM Statement and Trading Update

 

GAME Digital plc (the "Group"), the specialist video games retailer, is today providing an update on its trading performance ahead of the Group's Annual General Meeting to be held at 10.00 a.m. today.

 

The Group's Gross Transaction Values1 ("GTV") for the 3 and 24 week periods ended 9 January 2016 are as follows:

 


3 weeks from 20 December 2015 to 9 January 2016

24 weeks from 26 July 2015 to 9 January 2016


GTV Growth, %

GTV Growth, %

Group

-0.4

-5.5

UK Retail

-5.9

-10.5

Spain (in £ sterling)

+10.6

+8.8

 

Sales trends improved over the important Christmas trading period with the Group's GTV down 0.4% in the 3 week period ended 9 January 2016.  The Board reconfirms the Adjusted EBITDA2 guidance previously provided for the 26 week period ending 23 January 2016 of around £30 million. The Group will announce its half year results on 23 March 2016.

 

Commenting, Martyn Gibbs, GAME Digital Chief Executive Officer, said:

 

"On behalf of the Group, I would like to thank the GAME and Multiplay teams across the UK and Spain who have once again worked exceptionally hard serving our customers and gaming communities over the busiest period of the year. We also recognise the valuable and ongoing support from our supplier partners in delivering our competitive proposition.

 

"As outlined in our previous trading update, recent trading conditions in the UK video games market have been challenging, impacting GAME UK's peak trading performance. However, we have seen a better market and an improved sales trend over the last three weeks. The strong performance in Spain in the first 21 weeks of the year has also continued over our most recent trading period.

 

"We are committed to taking appropriate actions to respond to the market challenges that we face in the UK market. Alongside pursuing commercial developments we are focused on driving further operational efficiencies and the Group has already begun to implement a series of initiatives to deliver an improvement in the profitability of our UK business.

 

"Looking forward, we see a solid schedule of new games releases planned during the second half of our financial year.  We also anticipate that new technology releases this year, in particular the launch of Virtual Reality devices, will lead to increased consumer interest which will benefit GAME as customers seek expert advice and specialist service. We believe that these factors, together with the continued move towards high margin new format3 mint and preowned software and accessories and a growing contribution from the Group's newer categories and businesses, including GAMEtronics and Multiplay, will support margin growth in our second half and beyond."

 

 

Enquiries:




GAME Digital plc

+44 (0) 1256 784 000

Martyn Gibbs

Chief Executive Officer

Mark Gifford

Chief Financial Officer

James Staveley

Investor Relations & Corporate Development Director



Citigate Dewe Rogerson


Grant Ringshaw

+44 (0) 207 282 2851

Jos Bieneman

+44 (0) 207 282 1053

 

 

Notes

1 Gross Transaction Value ("GTV")

GTV is a non-IFRS measure defined as total retail receipts and all other Group revenue excluding VAT and before the deduction of revenue deferral relating to reward points.  GTV reflects the full sales value of digital sales, agency sales (including sales by business partners on GAME's Marketplace website), warranties and other similar arrangements and thereby includes the publishers' and sellers' shares of those transactions.

2 Adjusted EBITDA

Operating profit before net finance charges, taxation, depreciation, amortisation, exceptional and adjusting items.

3 New format - Xbox One and PlayStation 4 ("Xbox1 and PS4").

4 UK Retail - GAME Retail Limited, excludes Multiplay

 

Forward Looking Statements

This announcement contains certain forward-looking statements which have been made by the Directors in good faith using information available up until the date they approved the announcement.  Forward-looking statements should be regarded with caution as by their nature such statements involve risk and uncertainties relating to events and circumstances that may occur in the future.  Actual results may differ from those expressed in such statements, depending on the outcome of these uncertain future events.

 

 


This information is provided by RNS
The company news service from the London Stock Exchange
 
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