Game has posted an increase in profits at the half-year mark despite falling sales, in what boss Martyn Gibbs described as “a challenging retail environment”.
The specialist retailer posted a 20.3% increase in pre-tax profit year on year to £14.8m in the 26 weeks to January 26, with adjusted group EBITDA up 22% to £25.8m.
The retailer’s revenue declined 4.7% to £493m during the period.
Game’s UK division recorded a 49.5% spike in adjusted EBITDA to £14.8m during the period bolstered by £4.9m in operational efficiencies and cost savings.
The retailer said its cost savings programme is driven by its “rent negotiation programme, store payroll efficiencies and other store, head office and distribution savings.”
The specialist retailer’s events and esports division, which includes its Belong gaming arenas, recorded a decline in revenue due to a reduced number of events held during the year.
The retailer’s Spanish division recorded a small increase in gross transaction values, with EBITDA broadly flat year on year.
Chief executive Martyn Gibbs said: “Our core retail businesses are facing a challenging retail environment that continues to evolve at pace, but we have set ourselves up well with our transformation programme and continued focus on costs and efficiencies.
“During the period the UK Retail business delivered further efficiency improvements and achieved considerable cost savings across all areas including store operating and fixed costs, distribution and head office costs.
“The improved group profitability in the half and strong cash position means that we are well placed to advance our strategic priorities in the coming months whilst managing our business closely in the current challenging retail environment.”
Game ramps up arena expansion in transformation plan
- Currently reading
Game profits increase driven by cost-cutting programme