Updates

Game Digital - Price competition triggers warning

February 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.

Game shocked the market by announcing that EBITDA for 2014 will now be similar to the £51.3m achieved in 2013, significantly below forecasts. The bugbear was a highly competitive “Black Friday” and Christmas trading period, which forced Game into higher levels of promotional activity including offering attractive bundling of consoles and games.Broker Liberum has downgraded EBITDA forecasts by 21% to £51m for year to end July ’15 with new eps of 18p, rising to 22.7p in ’16. Liberum believes the rapid growth of console sales bodes well for future content sales and on balance it’s worth holding onto the shares for that. ...

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