‘We are pursuing growth opportunities in the cryptocurrency, NFT, and Web 3 gaming verticals, all of which we expect to be increasingly relevant for gamers of the future,” said CEO Matt Furlong.
GameStop (GME) – Get GameStop Corp. Class A Report shares edged lower Thursday after the video game retailer and meme stock favorite posted a wider-than-expected first quarter loss but noted solid gains from online sales.
GameStop, which is hoping to transition from a reliance on brick-and-mortar sales to a larger and more dynamic presence online, said revenues for the three months ending in April rose 8.1% from last year to $1.38 billion, with around half of that total coming from its digital channels.
The group still posted a loss of $2.08 per share, however, and decline to take questions from analysts — as has been the case for several quarters — on its regular post-earnings conference call.
GameStop also repeated it plans to launch a market for so-called NFTs, or non-fungible tokens, related to its video game products, following a tie-up earlier this year with Australian blockchain startup ImmutableX. GameStop said it booked $76.9 million in digital asset sales from the IMX partnership.
“During the first quarter, we specifically focused on two main areas: continuing to rebuild and strengthen our commerce business after years of underinvestment and pursuing growth opportunities in the cryptocurrency, NFT, and Web 3 gaming verticals, all of which we expect to be increasingly relevant for gamers of the future,” said CEO Matt Furlong.
“Change is continuing to be embraced across our stores, fulfillment centers, and offices. A constant emphasis on the customer is taking hold up and down the organization,” Furlong added. “This will remain key as we pursue sustained sales growth, establish broader offerings in consumer electronics, and launch new products aligned to the long-term future of gaming.”
GameStop shares were marked 0.33% lower in premarket trading to indicate an opening bell price of $121.00 each, a move that would leave the stock with a year-to-date decline of around 22%.
Short interest in the shares remains elevated, as well, with data from Ortex showing just under $2.6 billion in bets against the group, a figure that represents around 17.55 million shares, or 28% of the stock’s outstanding float.
Last month, Electronic Arts (EA) – Get Electronic Arts Inc. Report said current quarter sales would likely slide to around $1.44 billion as gamers spend few hours in front of their consoles in a post-pandemic world.
The forecast was also complicated by the loss of its three-decade long agreement with FIFA, the governing body for world football, that was reportedly worth around $150 million a year.
In April, Activision Blizzard (ATVI) – Get Activision Blizzard, Inc. Report posted weaker-than-expected first quarter earnings amid softer demand for its latest Call of Duty franchise.
The video game maker, which is in the process of being bought by tech giant Microsoft (MSFT) – Get Microsoft Corporation Report for around $69 billion, said monthly active users fell 14.5% from last year to 372 million, taking in-game billings down 24.6% to $1.01 billion amid weaker-than-expected demand for its Call of Duty: Vanguard release.