GameStop Revenue, Profit Drop22 Aug, 2013 By: Chris Tribbey
Gaming retailer GameStop Aug. 22 reported second-quarter revenue of $1.38 billion, down nearly 11% year-over-year, and a profit of $10.5 million, down from $21 million from the previous year.
During the quarter, GameStop saw its mobile content sales up 121.4% to $55.1 million, and digital sales grew 17.9% to $158. million. New software sales were down 9.3%, and new hardware sales were down 19.4%. Used game sales were down 6%.
“Through two quarters, the year has played out as expected,” said GameStop CEO Paul Raines. “During this console transition period, our financial results have been supported by the continued growth of our emerging businesses. Of course, excitement continues to build for the upcoming new games and the launch of the PS4 and Xbox One. As the global gaming leader, GameStop is uniquely positioned to capitalize on the new, innovative products coming to market.”
GameStop executives added they expect the company’s combined mobile and digital businesses to exceed $1 billion in revenue by the end of the year.
For the third quarter, GameStop is looking at a better line-up of new-release games, with Grand Theft Auto 5, Battlefield 4 and Assassin's Creed: Black Flag among the biggest releases.
During a conference call with investors, Mike Hogan, EVP of strategic business and brand development for GameStop, said the fact that both the Xbox One and PlayStation 4 will have few restrictions on used games will be a positive for GameStop.
“At one point, there was some concern that console manufactures might attempt to limit consumers' ability to share, trade or resale games, and our research demonstrated that, that would seriously limit purchase interest in the new consoles,” he said. “This has since been clearly resolved in favor of the consumer, which is a significant positive for new console demand.”