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    GameStop is a multichannel video game, consumer electronics and wireless services retailer offering the most popular games, hardware, and accessories. Key financials include annual revenue of $9.1 billion, gross profit margin of 31%, and EBITDA margin of 9%. The company operates over 6,000 stores globally and generates the majority of its sales and gross profit from new and pre-owned video game products. While digital video game sales are growing, physical games are still expected to drive industry revenue due to benefits like trading in used games.

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    GameStop is a multichannel video game, consumer electronics and wireless services retailer offering the most popular games, hardware, and accessories. Key financials include annual revenue of $9.1 billion, gross profit margin of 31%, and EBITDA margin of 9%. The company operates over 6,000 stores globally and generates the majority of its sales and gross profit from new and pre-owned video game products. While digital video game sales are growing, physical games are still expected to drive industry revenue due to benefits like trading in used games.

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    10 views3 pages

    GME Company & Industry Overview

    Uploaded by

    Anonymous HaTJgXgKHu
    GameStop is a multichannel video game, consumer electronics and wireless services retailer offering the most popular games, hardware, and accessories. Key financials include annual revenue of $9.1 billion, gross profit margin of 31%, and EBITDA margin of 9%. The company operates over 6,000 stores globally and generates the majority of its sales and gross profit from new and pre-owned video game products. While digital video game sales are growing, physical games are still expected to drive industry revenue due to benefits like trading in used games.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as pptx, pdf, or txt
    of 3

    Company Overview

    Business overview

    Key Financials

    Multichannel video game, consumer electronics and


    wireless services retailer, offering customers the most
    popular games, hardware, and game accessories for
    next generation video games systems and the PC
    Significant products: New video game hardware,
    New video game software, Pre-owned and value
    video game products, Video game accessories,
    Digital, Mobile and Consumer electronics, and other

    LTM Revenue: $9,145 mm


    LTM Gross Profit: $2,828 mm (30.92% Margin)
    LTM EBITDA: $811.9 mm (8.87% Margin)
    Market Cap: $2.44B
    EV/EBITDA(ttm): 3.50x
    Products and Segments

    Net Sales By Significant Product FY2016 ($9,364 mm in total)


    6%
    7%

    New video game hardware


    New video game software

    21%

    2%
    8%

    Sells various digital products including


    downloadable content, network points cards, and
    digitally downloadable software

    Pre-owned and value video game products


    Video game accessories
    Digital
    Mobile and consumer electronics

    GameStop sells both new and used video game


    hardware, physical and digital video game software,
    accessories, and new and used consumer electronics

    25%

    31%

    Other

    Company

    Industry

    Four Video Game Brands segments: United States


    (4,013 out of 6,081 stores), Canada, Australia and
    Europe, Technology Brands.

    Thesis

    Valuation

    Risks

    Gross Profit by Product


    Gross Profit by Product Segment FY2016 ($2,918 mm in Gross Profit)

    6%

    7%

    11%
    New video game hardware

    New video game software


    24%
    5%

    Pre-owned and value video game products

    Video game accessories

    Digital

    Mobile and consumer electronics

    9%

    Other

    38%

    Pre-owned and value video game products contributes 25% to net sales but
    comprises 38% of gross profit

    Industry Overview
    Increasing Digital Video Games Sales

    Global video games revenue expected to reach


    $92.3 billion in 2019
    Digital video games sales rise 11% YoY in
    August 2016
    4 straight months of double digit growth
    Physical console market still expected to drive
    revenues
    The ability to trade in physical games,
    frequently higher digital pricing and a
    lack of network infrastructure will keep
    physical distribution relevant (Source:
    PWC)
    Growth in digital download market unlikely to
    replace physical distribution, but rather
    complement it
    Company

    Industry

    Thesis

    Valuation

    Risks

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