Game Digital (GMD)

Business description

Game Digital is the leading omni-channel specialist retailer of video games in the UK and Spain, with 311 stores in the UK, 270 stores in Spain and over 30% market share.

Stock data

Market cap.£41.4m
Last close24.25p
High / Low (52 weeks)77.0p / 19.2p
Stock market listingLN
Forecast net cash (£m)39
Forecast gearing ratio (%)N/A
TeamConsumer
SectorFood & Drink

Price performance

%1m3m12m
Actual(14.9)(43.9)(66.6)
Relative *(15.2)(43.5)(68.8)

* % Relative to local index

Other companies in sector Show

Investment summary

Game Digital is a market leader in video gaming in the UK and Spain with 32% average share. It is executing a major change of strategy to retain its position as the number one destination for gamers, while expanding live and online gaming services and developing new markets. The strategy should bring reduced dependence on the cyclicality of the games market over the next few years. In the short term, UK supply shortages for the successful Nintendo Switch console will have an impact on H2 results. We downgraded our FY18e revenue by 4% and EBITDA by 53%.

Last updated on 03/08/2017

Y/E Jul Revenue (£m) EBITDA (£m) PBT (£m) EPS (fd) (p) P/E (x) P/CF (x)
2015A 866.6 46.9 38.0 18.5 1.3 N/A
2016A 822.5 28.0 16.4 8.8 2.8 0.9
2017E 780.3 8.4 (3.6) (1.6) N/A 6.8
2018E 789.9 13.4 0.8 0.4 60.6 3.8

Last updated on 24/07/2017

Latest research

Not a game changer

Update | Food & Drink | 04/07/2017

Switch supply impacts short term results

Flash note | Food & Drink | 30/06/2017

The long game

Initiation | Food & Drink | 19/04/2017

Latest video

Bitesize Briefing - Game Digital

Industry outlook

The UK and Spanish console markets are worth c £0.8bn and €0.3bn respectively, and the content markets c £1.6m and €0.5m respectively. Console releases from Microsoft and Sony drive demand that has peaked every six years since 2000 and drives content over subsequent years. However, an apparent move to shorter release intervals could signal structural changes to the traditional cycle, emulating the mobile and PC markets.

Last updated on 03/08/2017

Key management

John E. Jackson, Chairman
Martyn Gibbs, CEO
Mark Gifford, CFO
Pablo Crespo, Director: General of Spain
Lesley Watkins, Non-Executive Director
Caspar Woolley, Non-Executive Director
James Staveley, IR Director

Company address

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