Game Digital (GMD)

Business description

Game Digital is the leading omni-channel specialist retailer of video games in the UK and Spain, with 299 stores in the UK, 267 stores in Spain and over 30% market share.

Investment summary

Game Digital (GMD) is executing a major strategy change, moving to gaming experiences while reducing dependence on the traditional product-related cycle. Under a February 2018 collaboration agreement with Sports Direct (SD) it plans to roll out its BELONG gaming arena concept to c 100 arenas in three years. At the interim, EBITDA was down 9% on mix issues, although the strong market augurs well for future periods. We reduced our FY18e EBITDA from £12.3m to £10.8m, mainly on the re-specification of the BELONG model ahead of the roll-out plan.

Last updated on 06/04/2018

Y/E Jul Revenue (£m) EBITDA (£m) PBT (£m) EPS (fd) (p) P/E (x) P/CF (x)
2016A 821.9 26.4 14.8 8.0 4.3 1.3
2017A 782.9 8.0 (4.3) (3.8) N/A 19.5
2018E 821.0 10.8 (1.4) (0.6) N/A 6.6
2019E 840.8 15.1 0.8 0.4 86.3 3.0

Last updated on 24/04/2018

Latest video

Bitesize Briefing - Game Digital

Industry outlook

The UK and Spanish console markets are worth c £0.4bn and €0.3bn, respectively, and the content markets c £1.6m and €0.4m, respectively. The traditional cycle that has peaked every six years since 2000 seems to be moving to shorter intervals. This could signal structural changes analogous to the mobile and PC markets. In addition, the global esports market, currently US$0.7bn, is forecast to grow to US$1.5bn by 2020.

Last updated on 06/04/2018

Key management

John E. Jackson, Chairman
Martyn Gibbs, CEO

Company address

Unity House
Telford Road, Basingstoke
RG21 6YJ
United Kingdom
+44 (0)1256 784000
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