Business Irish

Wednesday 17 October 2018

GameStop Ireland hit by €2.5m losses

Grand Theft V was a big seller for GameStop – but the firm was still left with losses.
Grand Theft V was a big seller for GameStop – but the firm was still left with losses.

Gordon Deegan

Bumper sales of the latest editions of 'Call of Duty' and 'Grand Theft Auto' were not enough to prevent the Irish arm of GameStop recording pre-tax losses of €2.59m last year.

Accounts filed by Gamestop Ltd with the Companies Office show that the business recorded the 12.5pc increase in losses in spite of revenues going up by 3pc from €49m to €50.46m in the 12 months to the end of January 28th last. The firm recorded a pre-tax loss of €2.59m last year and this followed a pre-tax loss of €2.3m in the prior year.

The company recorded an operating loss of €1.74m last year and interest charges totalling €844,343 added to the losses. According to the directors' report for Gamestop Ltd, "both the level of business and the end-year financial position were considered satisfactory in light of the life-cycle stage of the current generation of computer consoles".

They state: "A focus on cost-saving initiatives particularly in the area of labour and occupancy costs assisted in achieving these results."

The loss takes account of non-cash depreciation costs of €929,593. The amount spent on operating lease rentals increased marginally, going from €3.46m to €3.56m.

Numbers employed by the group last year decreased from 274 to 266 with employment costs increasing from €4.8m to €4.9m. The firm had a shareholders' deficit of €16.45m with its cash pile decreasing from €2.5m to €2.1m.

The company's cost of sales totalled €37.5m.

Irish Independent

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