Game for a laugh as computer buffs help to drive up sales

Published on Tuesday 30 September 2008 22:02

A "STUNNING" set of results from computer games retailer Game brought a rare ray of sunshine to the high street yesterday.

In the six months to the end of July, the company's pre-tax profits jumped to 36.4 million from 2.7m, helped by its Gamestation acquisition last year and a like-for-like sales improvement of 22.2 per cent.

Buoyed by the launch of Nintendo's Wii Fit and Grand Theft Auto IV, Game said its products were being seen as a "more affordable alternative" to many other family leisure activities.

For the full year, Game has raised its guidance for like-for-like sales growth to between 8 per cent and 12 per cent, from the 5 per cent to 10 per cent previously estimated.

Game said it expected its store portfolio to top 1,300 by Christmas, compared to 1,150 at the same time a year ago.

It has also announced an agreement with book store chain Borders to open up to 33 concessions within its shops.

The deal follows a trial in six stores and mirrors other concessions within retailers such as Debenhams, Selfridges, Hamleys and Fenwick. A further 14 will be opened by Christmas.

Game's share price has fallen in recent months as the company faces up to competition from the likes of a resurgent HMV, which is looking to grab a bigger slice of the lucrative games market.

But Game said overall demand remained strong, with the number of current generation consoles in the UK now standing at more than 17.3 million.

Numis Securities described the results as "stunning" and raised full-year forecasts to 125m from 113.5m.