Profits ahead of expectations at Game Group

Shares in Game Group, the computer games retailer, increased by 8% earlier this week as profits for the year exceeded City expectations.

The company said profits for the year would be ‘not less than £70 million’ for the 12 months to end January, the market consensus was £62.2 million.

Retailers have struggled to meet demand for the popular Nintendo DS and Wii and other consoles which have been flying off the shelves during the festive period. The market has grown outside the tradition of teenagers as family-oriented games such as Brain Training and High School Musical increase in popularity.

The group, based in Basingstoke, purchased rival High Street chain Gamestation in December last year and said sales were up 44% on a like-for-like basis during the 45 weeks to December 8, while they rose by 89% once the Gamestation figures were included.

During 2007, the company added over 300 new outlets to its portfolio including 217 acquired through its takeover of Gamestation, bringing its total number of stores to 1,150.

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