Game Group says ‘£70 million profits’ will beat market expectations

Source: Exec Digital UK

Date :31/12/2007 14:09:34

Shares in Game Group were boosted as Europe’s biggest specialist games retailer revealed that it expected pre-tax profit before costs to be ahead of market forecasts.

In an unscheduled trading statement this morning, the company said it had enjoyed a "continued strong sales performance" over the last three weeks, with a surge in customers before Christmas proving beneficial.

Game Group said that profits would be “not less than £70 million” for the year to January 31. The market consensus prior to today’s announcement was £62.2 million.

Nintendo

Nintendo's Wii and DS platforms were particularly popular, despite supply problems that meant stocks of Wii consoles and games ran out across the sector.

The market for Nintendo games and consoles has boosted the popularity of family-oriented games, which have expanded the market outside its traditional audience of teenage boys.

The company’s plans to buy smaller rival GameStation for £74 million were announced in May, but Game was forced to operate the two businesses separately while the competition watchdog examined the deal. The purchase was provisionally cleared earlier this month.

Game will report on Christmas trading on January 15.

Shares in the company rose by nearly 8 percent in early trading, gaining 18p to 250p.

They have now risen by nearly 120 percent since the start of 2007.

December 31, 2007