Retail giant Best Buy has released the results of its third quarter financials, showing a strong gain in its entertainment software division, led by sales of current and next-gen console hardware.
Best Buy reported profits of $150 million for its third quarter, a growth of 24 percent over the previous three quarters to a total of $614 million versus $496 million the prior year. Revenue for the retailer was up 16 percent to $8.5 billion.
However, the company missed estimates, with only a small increase over the $138 million profit in last year's comparable quarter, and Best Buy shares slid over $2 to $51.66 in mid-market trading.
The company attributed 17 percent of its third quarter revenue to its entertainment software group, which saw a double-digit gain in video game sales, albeit offset by a comparable decline in sales of music CDs. This gain, it said was driven by sales of current platforms like the PlayStation 2 and Xbox 360, but also by the recent launches of the PlayStation 3 and Nintendo Wii.