BRITISH video games retailer Game Digital yesterday cited tough competition as the reason for its decline in sales over the Christmas period.
The company said sales dropped 6.7 per cent in the 11 weeks ending 10 January. It announced the results after the market closed yesterday.
It stated that “promotional activity” across the market had inflated hardware sales, such as games consoles, but at a lower average selling price and margin.
The firm forecast flat full-year earnings, adding that underlying earnings would be broadly in line with last total of £51.3m – far below the £63.7m that analysts had expected.
Game chief executive Martyn Gibbs said that despite the fall in sales, the company was now “well placed” to capitalise on hardware sales. “We now have a huge customer base... to sell both mint and pre-owned physical and digital content accessories to over the long term,” he added.
Game relisted on the London Stock Exchange last year, two years after it had fallen into administration.