Gamestop records loss of €3m

 

THE IRISH arm of the world’s largest video game and entertainment software retailer, Gamestop, went into the red last year recording pretax losses of €3 million due in part to the lack of any new generation of games consoles.

According to documents just filed with the Companies Office, Gamestop Group Ltd recorded the €3 million pretax loss in the 12 months to January 30th of this year compared to pretax profits of €2.86 million the previous year.

The Dublin-based group has 55 outlets across the State, and recently announced it was seeking to hire 125 part-time sales assistants in the run-up to Christmas.

The filings show that revenues at US-owned Gamestop Group Ltd dipped by 16 per cent to €67.9 million from €81.3 million.

The group sustained a loss after tax of €4.3 million after paying tax of €1.2 million.

According to the directors’ report, “both the level of business and the year-end financial position were considered satisfactory in the light of the current economic downturn and the life cycle stage of the current generation of computer consoles”.

The directors add that “the key business risks and uncertainties affecting the group are considered to be related to product availability and supply and the life cycle status of game formats”.

On the company’s future development, the directors state that “in 2010 the company plans to expand its product offering to the consumer beyond the exclusive sphere of gaming. Such new products will be complementary and will extend more value and choice to our customers.”

The group, which also operates a small number of stores in the UK, reported a €1.1 million rise in administrative expenses to €17.5 million.

The accounts show that the group recorded an operating loss of €1.64 million last year after recording an operating profit of €4.5 million in 2008.

Gamestop employed 430 people last year, an increase of 29. Employment costs rose 5 per cent to €8.5 million. Directors’ remuneration and other emoluments were 42 per cent higher at €283,894.