Shares in Game Digital (LON: GMD) increased by four percent on Tuesday morning after the group posted a positive second half trading update.
Investors saw no cause for concern as retail metrics improved by 6.2 percent year-on-year for Game Digital’s UK business. The group’s Spanish unit saw 5.3 percent growth.
The group’s total gross transaction value for the year grew by 1.8 percent to £907.2 million but fell by 1.6 percent in the second half to £320.4 million.
Martyn Gibbs, the group’s chief executive, hinted at cost-cutting in the next year.
“We have made further progress in the second half of the year to right-size the UK retail business by reducing the cost base, whilst capitalising on all market opportunities to address the challenges and changes in the UK retail market,” he said.
“This review of costs will continue into the next financial year.”
Game Digital has teamed up with Sports Direct (LON: SPD) and plans to launch 100 Belong e-sports arenas over the next three years, some these will be set up in Sports Direct stores.
Sports Direct had paid £3.2 million for 50 percent of its Belong business, which provides gaming arenas.
“Opening the first two arenas in collaboration with Sports Direct represents a significant step forward as we implement our strategy to increase the availability and scale of Belong, our experienced-based gaming offer and e-sports activities,” said Gibbs.
“The UK and Spanish mint retail markets continue to show growth and we expect that this momentum will continue into our new financial year and the peak trading period, driven by a strong line-up of new software releases,” he added.
Shares in Game Direct are currently trading up 1.63 percent at 28,00 (1034 GMT).