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business/news//The Star
GameStop posts 14% rise in quarterly revenue, buoyed by strong collectibles demand.
GameStop posted a 14% rise in quarterly revenue, reaching $835.3 million for the first quarter.
KEY POINTS
GameStop's board approved a new $2 billion share repurchase program through June 2, 2029.
GameStop increased its stake in eBay to 6.6% while pursuing a rejected $56 billion acquisition offer.
First quarter net income surged to $389.6 million, up from $44.8 million last year.
June 2 (Reuters) - Videogame retailer GameStop posted a 14% rise in quarterly revenue on Tuesday, buoyed by strong collectibles demand, and said its board approved a new $2 billion share repurchase program.
The company has shifted focus from traditional hardware sales toward trading cards and collectibles as gamers move toward digital downloads and online purchases. Its shares jumped 7.4% in extended trading.
For the first quarter ended May 2, GameStop's net sales came in at $835.3 million, compared with $732.4 million a year ago.
The results come as the company presses ahead with its bid to acquire eBay after the e-commerce company rejected its unsolicited $56 billion offer last month.
GameStop increased its stake in eBay to about 6.6% from around 5%, while the videogame retailer's CEO Ryan Cohen said he remained committed to acquiring the company and could take the offer directly to shareholders if needed.
EBay, which is roughly five times as large as GameStop, called the proposal "neither credible nor attractive."
Cohen has argued that by combining GameStop and eBay he could cut costs and find synergies to create a much bigger enterprise.
GameStop reported net income of $389.6 million for the first quarter, compared with $44.8 million a year ago.
The new share buyback program would run through June 2, 2029, replacing the prior authorization from March 2019.
(Reporting by Harshita Mary Varghese in Bengaluru; Editing by Shilpi Majumdar)