GameStop shares jump on smaller-than-expected loss, deal with crypto marketplace FTX

(Reuters) -GameStop Corp on Wednesday reported a smaller-than-expected quarterly loss and a partnership with crypto marketplace FTX US, sending the video game retailer’s shares up 13% after the bell.

GameStop launched a digital wallet earlier this year that it said would enable transactions in a marketplace it is building for gamers and others to buy, sell and trade non-fungible tokens, or NFTs.

The company will start selling FTX gift cards at some of its stores as part of the FTX deal, financial terms of which were not disclosed.

Last year, GameStop was at the center of a social media-fueled trading frenzy that sent its shares soaring.

The company overhauled its management in an effort to reverse years of languishing sales and has been bolstering its e-commerce capabilities as online shopping accelerated during the pandemic.

However, GameStop’s results come at a time when gaming companies are facing a slowdown in demand for video games from pandemic highs, raising doubts about their ability to weather an economic downturn.

GameStop’s revenue in the second quarter fell 4% to $1.14 billion.

On an adjusted basis, the company lost 35 cents per share, compared with estimates of a loss of 38 cents, according to Refinitiv data.

GameStop’s shares closed at $24 on Wednesday and were trading at $27.35 after the bell.

(Reporting by Eva Mathews in Bengaluru; Editing by Shounak Dasgupta)

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