GameStop clears all debts, pays investors first dividend

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 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.

Related stories

Ex-GameStop CEO J. Paul Raines passes away

Recently resigned executive lost after recurrence of cancer

By Brendan Sinclair

GameStop fires COO and EVP without cause

Long-serving execs depart retail giant

By Christopher Dring

Latest comments (7)

Jesús Bosque Director for 6 years ago
Probably, this will better position to seize GAME stores in the near future, but who knows
0Sign inorRegisterto rate and reply
Charlie White Software Support Analyst 6 years ago
GAME are you taking notes?
0Sign inorRegisterto rate and reply
William Brown Aspiring Level Designer 6 years ago
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

0Sign inorRegisterto rate and reply
Show all comments (7)
Thomas Dolby Project Manager / Lead Programmer, Ai Solve6 years ago
I know GameStop have a bigger investment in digital services, but it that the only reason they're doing so much better than GAME?
0Sign inorRegisterto rate and reply
Kevin Clark-Patterson Lecturer in Games Development, Lancaster and Morecambe College6 years ago
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...
0Sign inorRegisterto rate and reply
John Donnelly Quality Assurance 6 years ago
Yet Game still have 2 stores in the center of Belfast while Gamestop shutterd their last store.
0Sign inorRegisterto rate and reply
Private VIdeo Games 6 years ago
Just bought myself some shares - don't let me down Gamestop!
0Sign inorRegisterto rate and reply

Sign in to contribute

Need an account? Register now.