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Second time lucky for Game Digital?

Game Digital has come back to market with tech-driven retailing initiatives in place of high-street stores
October 17, 2014

Game Digital (GAME) seems a very different beast to the one that went bust in March 2012. It's a company "reborn out of the ashes", according to management: considerably sleeker, with a smaller store base, well-invested technical infrastructure and, thanks to the IPO in June, a healthy balance sheet.

IC TIP: Buy at 277p

Game is putting digital innovation at the heart of its operations. An e-payment system called Game Wallet - developed in-house - was launched in June and already has 200,000 users. The pre-owned business, which accounted for more than 30 per cent of gross profit last year, has a new platform called Gametronics, allowing consumers to buy and sell used mobile phones and tablets in-store. Game is also set to unveil Game Marketplace, an Amazon-style platform facilitating trading between third parties and customers. Chief executive Martyn Gibbs is counting on these various initiatives to diversify the business and secure long-term growth.

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