Video game retailer GameStop posted another loss in its most recent annual report. The management has drawn a number of further conclusions from this.
A few days ago we reported on another wave of layoffs at the video game retailer GameStop. Now the company has provided the latest annual report, which provides a glimpse of the financial achievements in the third fiscal quarter of 2022.
Still a losing proposition
Accordingly, one could generate a turnover of 1.186 billion US dollars. This is a decrease of $111 million from the same period last year ($1.297 billion). The net loss was $94.7 million. Even if these red numbers do not promise anything positive, this is an improvement compared to the previous year. There you had to post a loss of 105.4 million US dollars.
It was also announced that it had cash and marketable securities of $1.042 billion. These were in same period last year still at 1.413 billion US dollars. Hardware and accessories accounted for the bulk of sales at $627 million (52.8 percent), followed by software ($352.1 million) and collectibles ($207.3 million).
As part of the earnings announcement, CEO Matt Furlong confirmed the recent wave of layoffs, although he says some employees have left of their own volition. Going forward, they want to focus on three main areas – gaming, collectibles and used items.
This also means that it is halting investments in the crypto space, having previously made inroads in the field. GameStop is also said to no longer own any crypto tokens, which is why shareholders should not expect crypto to be dedicated again in the near future. It “will not risk significant shareholder capital in this area,” Furlong said.
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In fact, in the future, spending will be handled “very sensibly” and only acquisitions that make sense will be considered. Accordingly, it remains to be seen. whether GameStop can slip back into the black in the future.
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