Electronics Boutique reports revenues, income up in Q2

Major US videogames retailer Electronics Boutique has announced its results for the quarter ended July 31, revealing a rise in revenue of almost 20 per cent and a profit figure which more than doubled over last year.

Total revenue for the three month period was $362 million, up 19.8 per cent over the same quarter last year - and, notably, $ 16 million higher than the revenue figure announced by EB's closest US rival, GameStop, earlier this week.

Net profit, meanwhile, was $3.9 million, which is more than twice the $1.7 million figure reported in the same period last year. While revenues were driven by the massive success of titles such as NCAA Football 2005 and Spider-Man 2, the profits figure was also assisted significantly by an improved gross margin - which rose from 27 per cent to 29.5 per cent.

That better margin was largely down to the company's increased sales of second hand games, which carry a better margin than new titles for retailers, and the firm hopes to build its presence in this market in future as part of a strategic plan which also includes domestic and international expansion.

For the current quarter, which runs through to the end of October, EB Games expects even better performance, with comparable store sales expected to rise by some 4 to 6 per cent - compared with a 2.2 per cent decline during Q2.

"We anticipate strong industry trends based on a growing installed base and several major software launches that will take place in the coming months," according to Electronics Boutique CEO Jeffrey Griffiths. "As such, we feel very positive about our prospects for the balance of the year."