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Game Digital (GMD)

Business description

Game Digital is the leading omni-channel specialist retailer of video games in the UK and Spain, with 277 stores in the UK, 265 stores in Spain and over 30% market share.

Investment summary

In a challenging market Game Digital (GMD) continues to make ground, meeting our 26% EBITDA growth forecast after achieving planned cost savings, despite the intensified swing to digital. In FY19 we expect the roll-out of BELONG to gather pace, as well as a continued fightback backed by the console industry. The value in our 67p valuation, other than cash of 33p, is in the BELONG roll-out, where continued momentum is crucial.

Last updated on 08/11/2018

Y/E Jul Revenue (£m) EBITDA (£m) PBT (£m) EPS (fd) (p) P/E (x) P/CF (x)
2017A 782.9 8.0 (4.3) (3.7) N/A 1.2
2018A 782.3 10.1 (3.5) (3.7) N/A 17.6
2019E 778.4 12.2 (2.2) (2.8) N/A 6.0
2020E 813.8 16.6 (1.2) (2.1) N/A 6.7

Last updated on 08/11/2018

Latest video

Bitesize Briefing - Game Digital

Industry outlook

The UK and Spanish console markets (hardware, software, accessories and console digital) are worth c US$2.2bn and US$1.2bn, 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 26/10/2018

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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