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.

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, developing new markets and reducing dependence on the cyclicality of the games market. At pre-close, trading is in line with revised expectations taking into account Nintendo Switch supply shortages flagged in June. Cost savings of £5m have been realised and year-end net cash of £47m beat our forecast of £45m.

Last updated on 03/10/2017

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 1.8 1.3
2016A 822.5 28.0 16.4 8.8 3.9 9.6
2017E 780.3 8.0 (4.0) (1.6) N/A 4.5
2018E 789.9 13.4 0.9 0.4 85.0 4.2

Last updated on 28/09/2017

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 03/10/2017

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
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