GAME Profits soar

5 07 2007

It’s only two months since an 80% fall was reported, but in advance of their AGM, GAME have just announced a 74% rise in sales.

A growing base of current-gen systems has eased things somewhat, nonetheless GAME expect margins to shrink:

As we said in April, the higher volumes of new generation platforms will increase hardware participation in the sales mix for the year to January 2008. The substantially lower margins achieved on hardware compared to software will reduce gross margins. The acquisition of Gamestation will also impact margins, as Gamestation has traditionally operated on lower margins than GAME. Taken together, the Board anticipates that gross margin for the half year will be around 230 basis points lower than the same period last year and for the full year will be around 250 basis points lower than last year.

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