Retail giant, GameStop, embraces cryptocurrency with a shift towards Bitcoins as its Q2 earnings mark a significant increase from last year's loss.
GameStop, the video game retailer, has announced its Q2 results for 2022, showcasing a significant improvement compared to the same period last year. The company's revenue rose quarter-over-quarter and year-over-year, reaching $972.2 million.
One of the key factors contributing to this growth was the increase in sales of hardware and accessories, which accounted for 60.9% of the quarter's sales. Collectibles, another significant category, accounted for 23.4% of the sales. Software sales made up 15.7% of the total sales.
The company's cost-cutting measures and streamlining of overseas operations in Q2 also played a role in the improved financial performance. Selling, general, and administrative expenses decreased to $218.8 million, down from $270.8 million in the previous quarter.
GameStop's operating income for Q2 was $66.4 million, a stark contrast to the operating loss of $22 million in the same period last year. On an adjusted basis, the operating income was $64.7 million.
Another notable aspect of GameStop's Q2 results was the positive impact of interest income and crypto gains. The company's Bitcoin holdings, which it acquired for $500 million during the quarter, generated an unrealized gain of $28.6 million using Coinbase pricing. The value of these Bitcoin holdings at the end of Q2 was $528.6 million.
However, the identity of the company that acquired 4,710 Bitcoin in the third quarter of 2021 is not explicitly identified in the provided search results.
GameStop's stock has also seen a rise, with a 8.3% increase on the month to $24.93.
In addition to these financial improvements, GameStop completed the divestiture of its Canada operations and classified France as assets held for sale.
An earlier version of this article misstated the quarter's bottom line and revenue trend. GameStop reported a profit, not a loss, in Q2.
These strong Q2 results mark a significant turnaround for GameStop, and the company looks set to continue its positive momentum in the coming quarters.
