Strategic Update (3039B)

TIDMGMG

RNS Number : 3039B

Game Group PLC

16 February 2011

The GAME Group plc

Strategic Update

The GAME Group plc ("GAME"), Europe's leading retailer of pc and video games, will host a strategic update for analysts today in London, outlining the initiatives for further business development. The presentation will be hosted by Ian Shepherd, Group Chief Executive and Ben White, Group Finance Director.

During the presentation GAME will unveil strategic goals which will result in the following:

-- Delivery of a step change in GAME's online revenues

-- Achieving seamless multichannel integration

-- Driving increased footfall conversion rates

-- Maximising new revenue streams and providing new payment options

-- CRM initiatives to deliver material revenue upside

Ian Shepherd, Group Chief Executive commented:

'Today is an important day for GAME as we set out our strategic direction for the business. Importantly we will set out how we will invest behind our strategy and give clarity about how we will track delivery of our plans.

Over the next three years we are confident that the delivery of our strategic goals will be profit enhancing. The activities announced today will increase our revenues from new and existing channels, which will improve overall profitability. The gross margin percentage will decrease as online and digital revenues become a larger part of our sales mix. In 2011/12 we anticipate there will be a margin impact of around 100 bps as we reposition our business to be truly multichannel.

Across the three year period we expect our operating cost base and capital expenditure to be broadly in line with 2010/11. In the short term, we have chosen to invest nearly all of the GBP15m of cost savings we expected to achieve in 2011/12 to deliver on our strategic goals.'

-ends-

Enquiries:

 
GAME Group   Simon Soffe, Communications & Investor 
 plc          Relations Director                      +44 1256 784566 
 
             Jonathan Glass 
             Wendel Verbeek 
Brunswick     Natalia Marisova                        +44 207 404 5959

This information is provided by RNS

The company news service from the London Stock Exchange

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