GameStop reports record Q4 sales, revenue

US videogame retail giant GameStop has released its Q4 and full fiscal year financial report, revealing record earnings of USD 85 million following its merger with former rival Electronics Boutique.

The company's Q4 earnings (which included merger-related expenses of USD 2.3 million) significantly exceeded previous guidance, climbing more than USD 50 million compared to the same period in 2004.

Sales for the quarter reached almost USD 1.7 billion, compared to USD 708.7 million in the same quarter a year prior, showing an increase of 135.2 per cent. The company largely attributes this spike to the addition of Electronics Boutique stores after the October 2005 merger completed.

Richard Fontaine, GameStop chairman and CEO, commented: "2005 was an exceptional year for GameStop and our shareholders. Clearly, our merger with EB Games in October was well received in the market and, I believe, is a reflection of our outstanding position and immense potential in a growing business."

"GameStop's market share has grown every year," he added. "And with the merger completed, we now have a 21 per cent share of all new video game sales in the U.S. according to the NPD Group."

Full year earnings were posted at USD 100.8 million, compared to USD 60.9 million in 2004, and sales increased 67.8 per cent to reach USD 3.1 billion. For the fiscal 2006 period, sales are projected to increase by 14-17 per cent, aided by the anticipated launch of Sony's PS3 and the Nintendo Revolution later in the year.

"We continue to define ourselves as a growth company," Fontaine concluded, confirming that the company plans to open 400 new stores this year, followed by an estimated 1200 additional stores during the following couple of years.