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Gamefly files $50m IPO

US game rental firm files for initial public offering to appear on NASDAQ

The US-based games rental company Gamefly has filed a $50 million initial public offering with the Securities and Exchange Commission to be listed on NASDAQ as 'GFLY'.

According to Business Insider, the company currently boasts subscriber numbers of 334,000 and it reported sales of $46.4m for the six months ending September 30 2009, up from $38.4m the previous year.

Net income in the same period was $3m, down from $5.4m the year prior and operating income was $6m, up from $2.5m. For the fiscal year ending March 31, $84.7m was made in net revenue.

Gamefly also runs a network of game sites that draw 4.4 million unique users, most of whom are not subscribers.

Just a tiny portion of the videogames market - around 1 per cent - has so far been tapped into by the company, it says, leaving room for future growth. It added that money raised from the IPO will go towards general corporate purposes.

Gamefly purchased news website Shacknews in February of last year in a deal which included related sites such as FileShack.

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