Game Digital (GMD)

Business description

Game Digital is the leading omni-channel specialist retailer of video games in the UK and Spain, with 304 stores in the UK, 268 stores in Spain and over 30% market share.

Investment summary

Game Digital is market leader in video gaming in the UK and Spain with c 30% market share. It is executing a major strategy change to retain its position as the top destination for gamers, while expanding live and online gaming services, developing new markets and reducing dependence on the cyclical product market. H2 saw strong trading recovery, led by the easing of the Nintendo Switch supply bottleneck. EBITDA met our £8.0m forecast. Led by strong unit sales of Switch and, recently, the XBOX One X, total retail sales are up 5.4% for the first 15 weeks of FY18.

Last updated on 13/12/2017

Y/E Jul Revenue (£m) EBITDA (£m) PBT (£m) EPS (p) P/E (x) P/CF (x)
2016A 821.9 26.4 14.8 10.7 4.9 29.6
2017A 782.9 8.0 (4.3) (3.7) N/A 9.9
2018E 793.2 12.3 0.2 0.1 526.3 7.5
2019E 796.3 15.0 1.9 0.9 58.5 5.3

Last updated on 12/12/2017

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 13/12/2017

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

Company address

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