Gamestop losses narrow to €3m

LOSSES at the Irish arm of the world’s largest video game and entertainment software retailer, Gamestop, narrowed by 29% to €3 million last year.

Documents just filed with the Companies Registration Office show that Gamestop Group Ltd recorded the €3m loss in the 12 months to the end of January 29 of this year after recording losses of €4.3m the previous year.

Gamestop Ireland has 50 outlets in Ireland and seven in Britain and the filings show that group recorded the loss last year after revenues declined by 8.8% from €67.9m to €61.9m.

The sales of games, Call of Duty: Black Ops; FIFA 11; Halo: Reach; Just Dance 2 and Wii Sports Resort contributed to last year’s revenues.

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 global economic downturn and the lifecycle stage of the current generation of computer consoles”.

Numbers employed by the group last year declined marginally from 428 to 419 with employment costs down 7.7% from €8.54m to €7.89m. The figures show that the group’s pre-tax losses last year increased by 8% from €3m to €3.3m. However, the group’s receiving a tax credit of €304,405 last year, compared with paying corporate tax of €1.2m in 2009, contributed to the smaller loss last year.

A note attached to the accounts states that “the gaming business moves in cycles in line with the launch of new consoles to the market. We are near the bottom of a current cycle and independent analysts (IDG) see a recovery in the market over the medium term”.

The figures show the group’s operating loss last year was €2m compared with €1.64m in 2009. The loss took account of €1m in non-cash depreciation costs.

At the end of last year, the group had €7.7m in accumulated losses.