The popularity of Grand Theft Auto IV has helped put GAME Group on track for half-year profits of £33m.

Strong demand for games like Grand Theft Auto IV, Wii Fit and Mario Kart, have helped to push half-year sales up 54% at GAME Group.

The Group said it now expects profit before tax for the 6 months to 31 July 2008 to be “not less than £33 million.”

For the 22 weeks ending 28 June, like-for-like sales – including revenues from its video game stores Gamestation – were up 28.1%.

The results are ahead of the group’s expectations, and show that video game retailing has so far escaped the high street downturn suffered by many other traders.

Sales were particularly strong in the UK and Ireland, rising 58.2% – with like-for-like sales up 28.1%. Internationally, total and like-for-like sales increased 43.9% and 16.9% respectively. GAME attributed the slightly lower international performance to an “insufficient supply of Nintendo products, particularly in Spain.”

Focusing on its Gamestation chain, the Group said it plans to further strengthen its business with the addition of 60 – predominantly international – new stores ready for the Christmas period. The openings will bring its total portfolio to 1,229 stores.

Looking forward, GAME Chairman, Peter Lewis, said: “Whilst sales are driven mostly by demand for consoles and the quality of new software releases, we recognise the challenges of the wider economic environment. In response, we will work hard on delivering competitive consumer offers and promoting the value associated with our successful preowned offer.

“We look forward to the second half of the year and, although the quality of the first half release schedule is unprecedented, we remain confident about the key Christmas trading season.”

For more information, visit: www.gamegroup.plc.uk

By Natasha Piscitelli