Updates

Game Digital

December 2015

Investing in shares may lose you all or some of your money. Past performance is no indication of future performance. Some of the shares recommended here may be small company shares, which can be relatively illiquid and hard to trade and this makes such shares more risky than other investments.

In spite of the recent price weakness, Game’s results were a touch ahead of forecasts with pretax profit falling 5% to £38m on unchanged turnover of £867m. Eps was 18.8p, up 6%, reflecting a lower tax rate of 17%. Net cash was £63m (2014: £83.7m) after interim and special dividends of 7.4p and 14.7p, respectively.Adjusted EBITDA in the UK fell 10% to £36.6m reflecting a 5% reduction in games console (i.e. hardware) prices. In Spain EBITDA fell almost 4% to £10.3m.It’s possible that the worst is over as across the UK & Spain there is now a significantly higher installed base of 4.5m new generation consoles vs 2.5m last year (in UK it’s 3.7m vs 2.4m), which provides a ca ...

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With small companies there is an above average degree of risk compared to buying blue chips. Please be aware that we have not assessed the suitability of any of these investments for you. The newsletter simply states a personal view and diarises the editor’s investment decisions. Please speak to your stockbroker or other qualified individual to ascertain whether any of these companies mentioned would form useful additions to your own portfolios. Past performance is no indication of future success.

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