Game’s half-year profits have taken a hit thanks to declines in its core retail operations.
According to the retailer’s interim results for the 26 weeks to January 27, profit before tax plummeted 25.5 per cent year-on-year from £16.5 million to £12.3 million.
This was driven by a steep 56.1 per cent drop in the profitability of its retail arm, plunging from £22.1 million to £9.7 million year-on-year.
Game said its core UK retail performance was adversely impacted by margin decline resulting from the change in its product offer, but added that this had been mitigated by £5 million saved in “further operational efficiencies”.
Game’s gross profit also declined 3.1 per cent year-on-year from £127.1 million to £123.1 million.
Despite the losing profits, the retailer booked a 3.9 per cent uptick in revenue during the half-year period to £517.4 million.
Its gross transaction value for its events and esports division excluding digital also surged by 31 per cent to £7.1 million.
During the period, Game sold off its Multiplay Digital operation for £19 million and entered into an agreement with Sports Direct which saw the sporting goods retailer take a 50 per cent stake in the Game’s Belong business.
This will lead to the roll out of its gaming arenas to 100 locations over the next three years to drive profitability.
