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Retail

GameStop clears all debts, pays investors first dividend

Thu 09 Feb 2012 9:13am GMT / 4:13am EST / 1:13am PST
Retail

US retailer in strong position for 2012 say analysts

US retailer GameStop has paid its first ever dividend to investors, having cleared the last of its debts with a successful holiday period at the end of 2011.

The chain raised $3 billion in sales from that quarter, enabling the board to reward shareholders for their faith with a dividend of 15 cents per share, payable on March 12, 2012.

"We have achieved our goal of eliminating debt and are pleased to return excess cash to our shareholders," said GameStop's executive chairman, Dan DeMatteo.

"The board's decision to initiate a dividend reflects GameStop's strong capital position and demonstrates our confidence in the long term viability of our business."

The group cleared its last debts on December 16, 2011 and shows continued growth across its businesses, which include game portal Kongregate.com and Game Informer magazine alongside its 6,627 stores worldwide.

GameStop's fair fortunes are a stark contrast to those of UK retailer the GAME Group, which has been forced to seek a buyer for its foreign holdings in an attempt to stabilise finances.

7 Comments

Jesús Bosque
Director for OnGames.com

1 0 0.0
Probably, this will better position to seize GAME stores in the near future, but who knows

Posted:2 years ago

#1

Charlie White
Software Support Analyst

15 6 0.4
GAME are you taking notes?

Posted:2 years ago

#2

William Brown
Aspiring Level Designer

20 0 0.0
Given the recent rise of on-demand gaming and digital distribution since the possibility of GameStop aquiring GAME Stores Group a good few years back I believe it goes without saying that GameStop would be crazy to own more brick-and-mortar outlets in a marketplace where the phyisical distribution paradigm is shifting towards digital distribution.

Edited 1 times. Last edit by William Brown on 9th February 2012 1:02pm

Posted:2 years ago

#3

Thomas Dolby
Project Manager / Lead Programmer

331 279 0.8
I know GameStop have a bigger investment in digital services, but it that the only reason they're doing so much better than GAME?

Posted:2 years ago

#4

Kevin Clark-Patterson
Lecturer in Games Development

291 23 0.1
Gamestop 1 - 0 GAME

Last time I bought from GAME: September 2012.
Last time I bought from Gamestop: November 2012.

Have been back to Gamestop since, GAME I haven't...

Posted:2 years ago

#5

John Donnelly
Quality Assurance

313 38 0.1
Yet Game still have 2 stores in the center of Belfast while Gamestop shutterd their last store.

Posted:2 years ago

#6

Private
VIdeo Games

103 14 0.1
Just bought myself some shares - don't let me down Gamestop!

Posted:2 years ago

#7

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