Game Group sees record profits

Sales of consoles such as Xbox 360s have helped Game Group's profits

UK video games retailer Game Group has reported record first half profits and raised its full-year sales forecast.

First half profit before tax hit £36.4m for the six months to 31 July, up from £2.7m in the same period last year. Group sales rose 54.1% to £743.4m.

The firm raised its like-for-like sales forecast for the year to 31 January 2009 from 5%-10% growth to 8-12%.

Formats such as Playstation3 and Xbox 360 as well as games such as Mario Kart and Wii Fit helped boost the results.

"The board remain confident in our outlook for Christmas and the full year," said Game Group chief executive Lisa Morgan.

Stock and purchasing efficiencies and the sale of more expensive software is expected to help the firm reach its target.

Game Group's positive outlook is particularly unusual as several other retailers are struggling because of consumers cutting down on non-essential spending.

But Ms Morgan said game-playing provided good value for money.

"There are not many products that are available for around £30 that can give the family... hours and hours of entertainment," she said.