GameStop can't build on Minecraft success as pre-tax losses rise
Sales of bestselling gaming titles Minecraft, Call of Duty, Grand Theft Auto and FIFA 2015 were not enough to prevent pre-tax losses increasing four-fold to €1.43m at the Irish arm of GameStop last year.
New figures show that GameStop recorded the increased pre-tax losses after revenues decreased by 10pc to €49.6m in the 12 months to the end of January 31 last.
According to the directors' report, "both the level of business and the end year financial position were considered satisfactory in light of the current global economic downturn and the lifecycle stage of the current generation of computer consoles.
"A focus on cost saving initiatives particularly in the area of labour and occupancy costs assisted in achieving these results."
The directors state that "in 2015/2016, the company will continue to review the performance of its stores.
"We will open new stores where we can identify a profitable opportunity and we will consider closing any stores that are not performing to expectations." Gamestop Ireland has close to 50 outlets and has also established an online presence.
The firm recorded an operating loss of €690,627 following an operating profit of €527,502 in the prior year.
The loss takes account of non-cash depreciation costs of €741,535. Numbers employed increased by six to 281 with staff costs of €4.6m.