Witcher 3, Batman: Arkham Knight DLC Sales Help Boost GameStop Earnings
Retailer's revenue and profit increase compared to last year, thanks in part to "strong" DLC sales for both games.
Video game retailer GameStop on Thursday reported earnings for the quarter ended August 1, revealing overall gains for revenue and profit thanks in part to The Witcher 3: Wild Hunt and Batman: Arkham Knight.
Total sales rose 1.8 percent to $1.76 billion, while profit for the quarter was $33.1 million, an increase of 34.6 percent compared to last year. This figure, however, excludes a one-time charge of $9.1 million related to GameStop's $140 million acquisition of ThinkGeek during the quarter.
GameStop new hardware sales fell 2.2 percent, while new software sales dropped by an even steeper 6 percent. Pre-owned sales, a key area of business for GameStop, rose just .5 percent, with the upswing due in part to an "acceleration" in Xbox One and PlayStation 4 sales.
Sales in the retailer's digital business grew year-over-year, rising 11.1 percent to $199.1 million. Success in this department was attributed in part to "strong sales" of The Witcher 3 and Arkham Knight DLC.
Another non-gaming category that did well for GameStop was its Mobile and Consumer Electronics division, which posted a 26.9 percent gain to $142.2 million in revenue. This was driven by a 62.3 percent increase in GameStop's Technology Brands unit, which includes Spring Mobile and Cricket Wireless.
GameStop's biggest area of growth for the quarter, on a percentage basis, was its "Other" category. Sales in this department rose 37.7 percent thanks to strong sales of collectibles through ThinkGeek. The retailer said previously that it expects to see a boost of $100 million-plus in annual net sales as a result of the buyout.
More GameStop news may come later today, as the retailer will hold an earnings call to discuss these results and more, starting at 2 PM PDT / 5 PM EDT.