A year ago we titled our initiation note ‘The long game’. But growth is now more closely tied to the transformative expansion of BELONG, as well as retail formats under the recent collaboration agreement with Sports Direct (LON:SPD). These plans represent a direct path to GAME Digital plc (LON:GMDG)’s future identity as a service-based business providing gaming experiences.
A transformative moment
Having signed the collaboration agreement with Sports Direct (SD) in February, Game Digital (GMD) is now accelerating its key strategy of widening its reach into experiential areas and engaging with customers more fully. It is planning the roll-out of its BELONG gaming arena concept, where customers experience the latest hardware and game releases, as well as relevant retail operations. It is According to its plans, GMD should be able to roll out 4,000 playing stations in 111 units in the three years to FY21, and 5,000 stations in c 135 units by FY22. That should result in steady state EBITDA of £20m by FY22 at a total capital cost of c £45m.
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