GameStop beats quarterly revenue estimates, turns profit

(Reuters) – GameStop Corp (NYSE:) surpassed fourth-quarter revenue expectations and posted a profit as the videogame retailer trimmed costs and reduced headcount, sending its shares more than 30% higher in extended trading.

The company has been shoring up its online sales capabilities in a bid to transform itself into a digital behemoth from its current mainstay of brick-and-mortar stores.

Net profit for the quarter ended Jan. 31 was $48.2 million, compared with a loss of $147.50 million a year earlier.

The company reported quarterly revenue of $2.23 billion, compared with analysts’ average estimates of $2.18 billion, according to Refinitiv.