Game - poor experience today :(

Hermione_Granger

JReacher1 wrote: »

They made a profit of over £200m last year which isn't that bad!

Their revenue may have been that high last year but their profits certainly weren't, hence the reason for one of their directors resigning not too long ago.

http://www.gamesindustry.biz/articles/2014-12-17-game-digital-posts-full-year-profit

Game Digital posted £24.8 million in operating profit for the year, with a pre-tax net profit of £7.3 million - a real improvement on the £15.4 million net loss in 2013

Pre tax profits of £7.3 million and an overall net income after taxes of only £2.8 million.
http://markets.ft.com/research/Markets/Tearsheets/Financials?s=GMD:LSE&subview=IncomeStatement

JReacher1

Hermione_Granger wrote: »

Their revenue may have been that high last year but their profits certainly weren't, hence the reason for one of their directors resigning not too long ago.

http://www.gamesindustry.biz/articles/2014-12-17-game-digital-posts-full-year-profit



Pre tax profits of £7.3 million and an overall net income after taxes of only £2.8 million.
http://markets.ft.com/research/Markets/Tearsheets/Financials?s=GMD:LSE&subview=IncomeStatement

http://www.gamedigitalplc.com/investor-relations/year-in-review.aspx

Hermione_Granger

JReacher1 wrote: »

http://www.gamedigitalplc.com/investor-relations/year-in-review.aspx

and from that review you can link to the full financial report for 2014
http://www.gamedigitalplc.com/~/media/Files/G/Game-Corp/documents/year-in-review-2014/game-ara-year-in-review-14-v2.pdf
which gives the same figures as I quoted earlier. (see page 54)

Profit before tax
Profit before tax for the year amounted to £7.3m (2013: loss
of £15.4m). This is after taking account of the exceptional items
and costs relating to change in ownership structure described
above and the high level of interest and finance costs associated
with the debt which has been

JReacher1

Hermione_Granger wrote: »

and from that review you can link to the full financial report for 2014
http://www.gamedigitalplc.com/~/media/Files/G/Game-Corp/documents/year-in-review-2014/game-ara-year-in-review-14-v2.pdf
which gives the same figures as I quoted earlier. (see page 54)

Gross profit was over £200m which is what I stated (and you claimed was wrong).

You clearly don't really understand finance.

Hermione_Granger

JReacher1 wrote: »

Gross profit was over £200m which is what I stated (and you claimed was wrong).

You clearly don't really understand finance.

Clearly you don't either as in response to the comment "Barely break even" - if there's anything that sums up Game, that's it."
you stated that their £200 million wasn't too bad.
Surely anyone who knows anything about gross and net profit margins understands that the gross profit figure is meaningless when viewing how well a company is doing.


Break their total net profit of £2.8 million down and it equates to an average profit of about £5000 per store for the entire year.
Personally I think that an operating profit that low clearly shows that they are barely breaking even.

Hermione_Granger

JReacher1 wrote: »

Gross profit was over £200m which is what I stated (and you claimed was wrong).

You clearly don't really understand finance.

Did you really?
The word "gross" seems to have vanished from your post.

ThumbRemote

As Hermione Granger says, gross profit is meaningless. Game don't make a lot of money - 2.8m after tax. (For comparison WHSmith made a 92m profit after tax).

And they are positioned in a market where they have competition from supermarkets and online. They really can't afford to upset their customers.

shaun_from_Africa

Hermione_Granger wrote: »

it equates to an average profit of about £5000 per store for the entire year.

£5000 profit per store for one years trading.
I used to make more than that selling used mobile phones on ebay.

dacouch

shaun_from_Africa wrote: »

£5000 profit per store for one years trading.
I used to make more than that selling used mobile phones on ebay.

To be fair each shop would have made more than £5k if they had not kept having to bank thousands in small change from each store.

#net

ThumbRemote

dacouch wrote: »

To be fair each shop would have made more than £5k if they had not kept having to bank thousands in small change from each store.

#net

Alternatively, since profit isn't going to be shared equally among stores, the sale of that game could have equated to that stores entire profit for that day.