Its operating loss before interest and non-recurring costs was GBP5.6 million for the six months ended July 31, compared to a loss of GBP10.3 million last year.
Peter Lewis, chairman, said: The Board remains confident that this year will be better than last and to date our performance has been encouraging. We have worked hard to emphasize our specialist credentials and have been rewarded with a strengthened market position which has driven a significant reduction in first half losses.
Hardware for the Xbox360, PSP, Nintendo DS and PS2 is in free supply and consumer demand remains strong and with around 800 stores trading through the key Christmas trading season, Game is well positioned to benefit. We are looking forward to Christmas 2006 and beyond as the next generation consoles continue to launch with the Nintendo Wii due to launch in December 2006 and Sony Playstation 3 due to launch in March 2007.
In the UK and Ireland, total revenues during the period were GBP198.1 million, up 16.2% from GBP170.5 million last year. This growth was largely attributable to a 13.8% increase in like-for-like sales.
The retailer is currently rolling out a new store format incorporating strong branded visual merchandising with a new product layout for all stores in the UK and Ireland. The cost of this refurbishment program will be GBP2.5 million.
On the international front, total sales for Continental Europe increased by 48.5% for the period with a 12.1% increase in like-for-like sales.
The company also said that its business development plan was still on track, having now entered the Portuguese and Australian markets. Game expects to open 10 stores in Portugal this year and up to 30 stores over the next few years.
Game also highlighted the importance of online retailing and digital distribution of games as important growth areas. The acquisition of the game.co.uk domain in December 2005 helped to increase consumer traffic to its website and online sales have increased by 38.5%. Online sales now account for 2.4% of total group revenues.
