LONDON, Oct 3 (Reuters) - Britain's growth-hungry online games retailer Gameplay.com Plc (LSE: GAM.L - news) said on Tuesday it had bought computer and video games publisher Pixel Broadband Studios from U.S. group Take-Two Interactive Software Inc for 34.1 million pounds ($50 million) in shares.
Chairman Mark Strachan told Reuters that the purchase was a keystone in Gameplay's long-term strategy of having users both play and buy games through any broadband technology channel, from third generation mobile phones to standard games consoles.
Pixel Broadband suppplies streaming technology which allows games to be downloaded directly to computers.
"It is a unique technology that allows you to play a computer game on mutliple formats. It talks across formats," Strachan said.
Gameplay on Tuesday reported a slightly higher than expected loss in its first full-year results, but said its customer base had risen to 1.2 million people. Of these, 300,000 had bought a product or a service during the year.
Gameplay reported an operating loss before goodwill and depreciation of 22.8 million pounds, with revenues for the year to July 31 were 23.2 million. Gross profits were also a bit higher than expected at 4.0 million pounds, giving a gross margin of 17 percent.
Gameplay, which has plummeted with most of the tech sector from a high of more than 11 pounds earlier this year, added 1-1/2 pence to 230p in early trade. But it is underperforming London's techMARK index by 50 percent this year.
"If you look at our share price graph, it looks like the Matterhorn, but at least it doesn't look like a slope," Strachan said, noting the stock had debuted last August at 135 pence.
Gameplay now operates in eight European countries, following a year which saw several acquisitions. Strachan said the year ahead would be more focussed on stitching the group together.... |
