Home / Articles / Game Digital plunges 30% on profit warning

Game Digital plunges 30% on profit warning


Shares in Game Digital have plunged by as much as 30% after it was hit by supply issues affecting Nintendo consoles, compounding its difficulties amid a tough consumer environment.

It said it now expected full-year profits to come in “substantially below” expectations.
The group had warned in March of the “challenging” UK retail market but said it hoped the Nintendo Switch console would provide a major boost after a difficult start to the year.
In a trading update it said: “Consumer demand for Nintendo Switch has been, and remains, very strong, however the level of supply to the UK market has been lower than expected.”
It said it still expected to deliver sales growth of 5-6% in the second half of the financial year but that this was below previous expectations.

Image: The retailer said supply of Nintendo Switch consoles to the UK had been lower than expected
The video games retailer added that it was seeing “continued softness” in its core Xbox and Playstation markets.
But it said despite the supply issue, demand for the Nintendo Switch was helping to strengthen the outlook for the next financial year, while strong interest was building for Microsoft’s new Xbox One X console.

The company added that its Spanish business was trading strongly and was on track to achieve record annual sales.
Shares in Game have fallen by more than 50% in the year to date.
In March it reported a 27% fall in first half profits to £16.5m, while UK sales fell 18%.
The company is one of a number of retailers that have warned they face a challenging trading environment – at a time when inflation is rising and wage growth is stuttering.
Game was rescued from administration in 2012.

Source: Sky

About Business Ideas UK

My name is Joel Bissitt. I have been an entrepreneur for 24 years and have run many small businesses across various sectors. For the last 10 years I have worked mainly within online media, franchising and small business start-ups. I am an author of various websites including Franchise UK https://www.franchise-uk.co.uk

Check Also

Another 40 Poundworld stores to close

Forty more Poundworld stores are to close later this month, leading to the loss …

Free Franchise Guide

Free Franchise Guide

 
Interested in buying a franchise? The our FREE Franchise Guide is a must! The guide contains lots of information to help you decide if franchising is right for you.
 

Yes, I'd like to join the Franchise UK mailing list.