Christmas 2011 Trading Statement (3769Z)
January 13 2011 - 2:00AM
UK Regulatory
TIDMGMG
RNS Number : 3769Z
Game Group PLC
13 January 2011
13 January 2011
The GAME Group plc
Christmas 2011 Trading Statement
The GAME Group plc ('GAME' or 'the Group') is today providing an
update on its trading performance over the Christmas period and for
the 49 weeks to 8 January 2011.
Peter Lewis, the Chairman of GAME commented:
"Customers continued to shop at GAME over Christmas despite a
difficult pc and video games marketplace and adverse weather. With
Group like for like (lfl) sales down 2.1% and UK and Eire store lfl
sales down 0.5%, our sales trends have continued to improve:
5 weeks to 8 January 49 weeks to 8 January
2011 2011
------------------ ------------------------ ------------------------
Total sales Lfl sales Total sales Lfl sales
(%) (%) (%) (%)
------------------ ------------ ---------- ------------ ----------
Group -4.1 -2.1 -7.7 -6.6
------------------ ------------ ---------- ------------ ----------
UK & Eire stores -3.3 -0.5 -12.3 -9.7
------------------ ------------ ---------- ------------ ----------
International
stores -5.5 -4.5 -0.4 -2.2
------------------ ------------ ---------- ------------ ----------
Group Online -2.4 -2.4 -0.3 -0.3
------------------ ------------ ---------- ------------ ----------
We expect our profit before tax and exceptional items will be in
the range of GBP37m to GBP39m for the year to 31 January 2011,
which is within current market expectations. Our margin guidance
remains unchanged.
Our specialist proposition, including the strength of our
pre-Christmas deals and post-Christmas Sale offers, provided unique
appeal for customers. The dedication and skill of our teams ensured
that our stores remained open through the severe weather and
customer conversion and market share increased during the key
weeks.
We have maintained strong cost control disciplines over the
period and we will deliver more operational cost savings than the
GBP7m previously outlined. Similarly, our disciplined approach to
working capital will result in the business generating around
GBP80m of cash before paying tax, dividends and loan repayments, a
considerable increase on the previous year's figure of GBP26m.
Outlook
Against the backdrop of a difficult year for the pc and video
games market in 20101, we saw encouraging signs that customers are
still looking for exciting products at reasonable prices.
We expect the trading environment to remain challenging in 2011.
However there will be further innovative launches in the $40bn
global games marketplace including Nintendo's new handheld 3DS,
additional software for Move and Kinect, and an exciting line up of
pc and console titles.
Alongside our commercial developments, we will remain focused on
operational improvements. We made good progress with our businesses
in France and Australia last year and will continue to do so in
2011. In every territory we will maintain our disciplined focus on
cost control, working capital improvement and capital
expenditure.
Strategic Update
GAME Group has a strong position in the video games market, but
it is well recognised that the market is changing. Next year will
see further innovation in existing formats as well as social and
mobile gaming, and a growth in digital and online distribution.
Given those developments, we recognise that we need to evolve our
business and deploy our strengths in new areas if we are to enhance
our position as the market leader.
More details will be provided at a strategic update next month.
Our team led by Ian Shepherd, will give an insight into the
strategic programmes with which we are building a seamless,
customer-centred multi-channel service for gamers in the
future."
The GAME Group plc will present the strategic update on 16
February 2011 and will report preliminary results for the full year
to 31 January 2011 on 27 April 2011.
- ends -
Notes:
1. UK pc and video games entertainment software, console
hardware, console/pc gaming accessories market value (source UKIE /
GfK ChartTrack):
03/01/10 to 04/01/09 to 02/01/10
Difference 01/01/11 (GBPm) (GBPm)
-------------------- ----------- -------------------- ---------------------
Total -11% 2,875 3,218
-------------------- ----------- -------------------- ---------------------
Console Hardware -25% 800 1,059
-------------------- ----------- -------------------- ---------------------
Entertainment
Software -5% 1,530 1,618
-------------------- ----------- -------------------- ---------------------
Gaming Peripherals +1% 545 541
-------------------- ----------- -------------------- ---------------------
2. GAME Group Store portfolio
31 January
8 January 2011 9 January 2010 2010
------------------------------- --------------- --------------- -----------
Number Number Number
------------------------------- --------------- --------------- -----------
Company owned and concessions
------------------------------- --------------- --------------- -----------
UK and Ireland:
- GAME - Stores 382 392 390
- GAME - Concessions 12 33 33
- Gamestation 247 257 254
------------------------------- --------------- --------------- -----------
Total UK and Ireland 641 682 677
------------------------------- --------------- --------------- -----------
France 197 199 199
------------------------------- --------------- --------------- -----------
Iberia 288 286 283
------------------------------- --------------- --------------- -----------
Scandinavia 67 68 68
------------------------------- --------------- --------------- -----------
Czech Republic 31 30 29
------------------------------- --------------- --------------- -----------
Total Continental Europe 583 583 579
------------------------------- --------------- --------------- -----------
Australia 94 118 118
------------------------------- --------------- --------------- -----------
Total International 677 701 697
------------------------------- --------------- --------------- -----------
Total owned and concessions 1,318 1,383 1,374
------------------------------- --------------- --------------- -----------
Franchises
------------------------------- --------------- --------------- -----------
Iberia - 5 5
------------------------------- --------------- --------------- -----------
Australia 1 1 1
------------------------------- --------------- --------------- -----------
Total franchises 1 6 6
------------------------------- --------------- --------------- -----------
Total operational outlets 1,319 1,389 1,380
------------------------------- --------------- --------------- -----------
Enquiries
Ian Shepherd, Chief Executive
Ben White, Group Finance Director
GAME Group Simon Soffe, Communications & Investor
plc Relations Director +44 1256 784566
Brunswick Jonathan Glass +44 207 404
Wendel Verbeek 5959
Oliver Hughes
This information is provided by RNS
The company news service from the London Stock Exchange
END
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