EMG fell about 10% in premarket trading Friday, March 18, less than a day after the company announced its fourth quarter and fiscal year 2021 results, which were highlighted by growth of 32% year-over-year from its subscription-based membership program, PowerUp Rewards Pro, in the fourth quarter.
GameStop, which has seen its shares fall around 55% in the past six months, trumpeted PowerUp Rewards Pro’s year-over-year growth to 5.8 million members for the three-month period. ended on January 29, according to a company Press release Thursday (March 17).
PowerUp Rewards Pro members pay $14.99 for an annual subscription and get an instant $10 reward that can be used the next time they purchase games and accessories; $5 monthly rewards; 2% rewards on every dollar spent (double what non-Pro members get); early access on console versions; graphics cards, collectibles and more; and a subscription to Game Informer magazine.
Also as part of its FY21 quarterly and annual earnings call, GameStop announced that it will launch a market for non-fungible tokens (NFTs) by the end of July to close out the first half of the fiscal year. 2022.
In fiscal 21 Q4, GameStop generated net sales of $2.254 billion, compared to $2.122 billion in the fourth quarter of 2020 and $2.194 billion in the fourth quarter of 2019. For the full fiscal year, GameStop achieved net sales of $6.011 billion, down from $5.090. billion in fiscal year 2020.
GameStop has also partnered with PC gaming companies Alienware, Corsair and Lenovo and Australian blockchain startup Immutable X which will be the backbone of its NFT marketplace and is expected to generate up to $150 million in IMX tokens when it will materialize.
Earlier in the fiscal year, GameStop opened new offices in Seattle and Boston.
Related: Is GameStop’s New NFT Market Diversification or Distraction?
As part of its collaboration with GameStop, Immutable X will become a Tier 2 partner and platform for GameStop and its NFT Marketplace, which is expected to launch later this year.
GameStop has hired more than 20 people to run its new NFT and cryptocurrency-related division. Activist investor Ryan Cohen, who was named chairman of GameStop in June, said the company needed to become more tech-centric and pledged to make it happen.
Immutable debuted in late 2017. It has 152 employees, co-founder and chairman Robbie Ferguson told The Wall Street Journal earlier this year, adding that the company had raised about $85 million in funding.