GameStop sees rise in revenue for past quarter

Erik Johnson
GameStop sees rise in revenue for past quarter

GameStop has reported better-than-expected quarterly results for the period concluded at the beginning of May.

Total revenue for the three-month stretch was up 3.2 per cent to $2.06bn, while net income jumped 8.5 per cent to $73.8m.

The American retail chain also boasted a 17 per cent increase in operating income ($123.9m) and a 15 per cent rise in earnings per share ($0.68).

GameStop attributed the positive results to new software sales – up 9.6 per cent during the quarter.

"The company captured significant market share of the key quarterly title releases, leading to record first quarter new software market share of 45 per cent,” the report states.

The firm's digital proved beneficial as well, with Non-GAAP digital receipts rising17.2 per cent to $222.2m thanks to DLC for titles such as Evolve and Mortal Kombat X. Increases in Steam currency and mobile game downloads were highlighted as well.

Speaking of mobile: GameStop's mobile and consumer electronics category spiked 33.9 per cent to $136.8m, with its acquisition Spring Mobile having become AT&T's second largest authorized US reseller in the process.

"Our first quarter results exceeded expectations, displaying our market leadership and our ability to drive and leverage our core video game business and expand our diversified businesses to deliver healthy profits and solid top-line growth,”GameStop CEO Paul Raines said.

This performance confirms that our effort to transform GameStop into a family of specialty brands is the right strategy to drive durable revenues and shareholder value."

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