British gaming retailer GAME (LON:GMD) reported a difficult start to the year, with adjusted pre-tax profit falling 39 percent in the six weeks to January-end.
The high-street gaming retailer revealed in their quarterly results that adjusted pre-tax profit fell to £16.9 million in the 26 weeks to January 28, following continued weakening sales of new games.
Despite witnessing strong growth in its digital and VR technology, CEO Martyn Gibbs conceded that the company’s first half results were somewhat disappointing, saying:
“Our first half saw another tough period for console hardware and physical software sales in the UK, impacted by a weaker line-up of new games launches and the market-wide underperformance of certain key titles.”
Looking forward, Gibbs commented:
“We continue to prioritise our efforts on taking the necessary actions to respond to these challenges, whilst positioning the business to capitalise on major future market opportunities. Across the Group we are working hard to improve operational efficiencies and reduce costs whilst implementing our GAME Changing strategy to reposition and transform the business, and I am encouraged with the progress we are making.”
Moreover, the company remained optimistic of a better performance in the second half of 2017, as it looks towards strong consumer demand for the Nintendo (OTCMKTS:NTDOY) Switch consoles and the Xbox’s Project Scorpio.
Gibbs continued in his statement:
“We have been pleased with the positive trading performance delivered in the first few weeks of the second half. Although we expect industry-wide challenges in our core Xbox and PlayStation categories to continue, we anticipate the overall UK market to remain positive during the rest of 2017, underpinned by the successful launch and continued consumer demand for the Nintendo Switch (TM), the planned launch of Xbox Project Scorpio and a stronger slate of new titles later in the year.”
The retailer remained focused on developing its digital content, preowned tech and PC gaming categories, which had been performing well.
Shares in GAME are currently up 6.31 percent, as of 13.12PM (GMT).