Live news: GameStop to issue shares despite falling revenue and store closure plan

GameStop said it would issue more shares as the US video game retailer reported falling second-quarter revenue as consumers shunned bricks-and-mortar stores in favour of online purchases.

The company said on Tuesday that proceeds from the issuance of 20mn shares would be used “for general corporate purposes, which may include acquisitions and investments”.

At the closing share price of $23.45, the new sale would bring in $479mn of cash, before fees. That would add to its war chest, which it reported stood at $4.2bn at the end of the second quarter.

GameStop, which was at the centre of the 2021 meme-stock frenzy, said it would rein in costs and close “underperforming stores”.

The company reported revenue of $798.3mn for the second quarter, down from $1.16bn a year earlier. Net income was $14.8mn, compared with a net loss of $2.8mn a year earlier.

GameStop shares were 3.3 per cent lower in after-hours trading.