Xbox 360 Sales Boost Gamestop Quarterly Profit

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Xbox 360 Sales Boost Gamestop Quarterly Profit

May 19th, 2006, 00:06 Posted By: wraggster

Shares of the Grapevine, Texas-based retailer, which gets healthy profits from used game sales, rose as much as 6.7 percent on the results.

GameStop said it had first-quarter net income of $11.7 million, or 15 cents per share. That beat a company per-share forecast of 4 cents to 5 cents issued in March.

In the year-earlier quarter the retailer had net income of $10.3 million, or 19 cents per share. Per-share earnings were higher a year ago because the company had fewer shares prior to its acquisition of Electronics Boutique in October.

Revenue more than doubled to $1.04 billion from $475 million a year earlier. Besides the acquisition, the company attributed the increase to strong sales of Microsoft Corp. Xbox consoles and games such as "Tom Clancy's Ghost Recon: Advanced Warfighter" from UbiSoft and "The Elder Scrolls IV: Oblivion" from Bethesda Softworks and Take-Two Interactive Software Inc.

Via reuters

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