Game chief executive quits as profits fall by more than a quarter
Thursday 22 April 2010
Lisa Morgan stepped down as chief executive of Game yesterday after the video game retailer reported a 28 per cent slump in full-year profits.
The news prompted a 12 per cent fall in Game shares, which closed down 12.1p at 89.3p. It also weighed on other computer game retailers, with the books and DVD seller HMV tumbling by 5.2 per cent, or 4.4p, to 80.6p and DSGi, the owner of Currys and PC World, down by 2.2 per cent.
Game said that Ms Morgan, who has been at the retailer for 14 years and has been Game's chief executive since 2006, had indicated her desire to step down earlier this year to "pursue other opportunities". She is leaving with immediate effect.
Terry Scicluna, the UK chief operating officer, is also stepping down but he will remain with the business through a handover period.
Game has appointed one of its non-executive directors, Chris Bell, who was previously the chief executive of the bookmaker Ladbrokes, as its interim chief executive while it searches for a replacement for Ms Morgan.
The departures follow a troubled year for the group that has included two profit warnings as the pipeline of blockbuster games has slowed down.
The retailer also announced plans yesterday to shut more than 100 of its 677 UK stores by the end of 2013 to save money.
For the year to 31 January, pre-tax profits at Game tumbled by 28 per cent to £84.1m, on group sales down by 10 per cent to £1.78bn. The retailer's group like-for-like sales on stores open more than one year plummeted by 15 per cent.
Given the migration of Game's revenues online, industry experts have expressed long-term concerns over the size of Game's high street presence. It has 703 stores outside the UK and currently gains 94 per cent of its revenues from its store base. But the retailer is also being squeezed by the supermarket muscling in on its categories.
In the UK and Ireland, underlying sales fell by 17.3 per cent, but this downward trend has accelerated since its year end. In the 11 weeks to 17 April, Game's UK and Ireland total and like-for-like sales tumbled by 20.8 per cent and 20.1 per cent, respectively.
However, Peter Lewis, the chairman of Game, pointed out that its pre-tax profits, before non-recurring costs, of £90.4m were the "second best trading performance in its history".
He said: "Our results were delivered against the backdrop of a very difficult trading environment, which saw the global PC and video games market decline by over 20 per cent. We outperformed the market."
- 1 Autism 'caused by genetics', study suggests
- 2 What happens to your body when you give up sugar?
- 3 Why you should never make assumptions about people with autism
- 4 Tourist films plane's descent just metres above packed Caribbean beach
- 5 Have sex with your iPad thanks to the new sex toy no-one asked for
Tourist films plane's descent just metres above packed Caribbean beach
Bali nine: Welcome to 'Execution Island' – the Indonesian holiday resort where foreigners are sent to die
How Homer Simpson discovered the Higgs boson over a decade before scientists
The 'sex selfie stick' lets you FaceTime the inside of a vagina
Harrison Ford plane crash: Star Wars actor 'seriously injured' after light aircraft crash lands
Durham Free School: 'Creationism taught at' free school facing closure
Nearly 100,000 of Britain's poorest children go hungry after parents' benefits are cut
End of the licence fee: BBC to back radical overhaul of how it is funded
Elif Shafak: Turkish author warns against rise of British nationalism
Ex-head of MI6: 'We shouldn't kid ourselves that Russia is on a path to democracy'
Most people think legal tax avoidance is just as wrong as illegal tax evasion, poll suggests
iJobs Money & Business
£13000 per annum: Recruitment Genius: This is an exciting opportunity to join ...
£25000 - £30000 per annum + benefits: Ashdown Group: A global leader operating...
£8 per hour: Recruitment Genius: This Pension Specialist was established early...
£30 - 35k + Bonus & Benefits: Guru Careers: We are seeking an Executive Assist...