Shares in Game Group were up on the FTSE All Share in afternoon trading after the computer games retailer said it expected full year profits to be within current market expectations, despite a drop in Christmas sales.
In the five weeks to 8 January total group sales declined 4.1 per cent. In Britain and Ireland sales fell by 3.3 per cent, while Game's international store sales dropped 5.5 per cent. Game's online sales declined 2.4 per cent.
The group said it expected pre-tax profit for the full year to be between £37 million and £39 million, within current market expectations.
Looking at the prospects for 2011 Game said that it expected the trading environment to remain challenging following 2010, which the company called a "difficult year for the pc and video games market".
Peter Lewis, Chairman of Game, said, "Customers continued to shop at Game over Christmas despite a difficult pc and video games marketplace and adverse weather."
He added, "Game Group has a strong position in the video games market, but it is well recognised that the market is changing. Next year will see further innovation in existing formats as well as social and mobile gaming, and a growth in digital and online distribution. Given those developments, we recognise that we need to evolve our business and deploy our strengths in new areas if we are to enhance our position as the market leader."
By 14:15 shares in Game were up 15.66 per cent on the FTSE All Share to 72.00 pence per share.