Game Digital has posted a 16 per cent fall in first-half adjusted core profit and said chief financial officer Benedict Smith would step down later this year.

Shares of the company fell seven per cent in morning trade on Tuesday on the London Stock Exchange.

Mr Smith, who has spent just over two years at the video games retailer, is moving to a private equity-backed business, Game Digital said on Tuesday.

Mr Smith will remain with Game Digital until July and the company has started the search for a replacement.

Game Digital, which went public in 2014, said its adjusted earnings before interest, tax, depreciation and amortisation, fell to £43 million in the 26-weeks ended January 24, from £51.3m a year earlier.

Sales fell marginally to £582.1m.

Analysts at Liberum said, "2015 to date has been slower for the games market with few blockbuster releases and while this should pick up over Easter and beyond we are more cautious for the balance of the year."

The brokerage trimmed its full-year EBITDA forecast for the company to £48.3m from £51m, while maintaining a "hold" rating on the stock.

The company had issued a profit warning in January, citing heavy competition over holiday periods and bundling of games with consoles.

Game Digital declared a maiden interim dividend of 7.35 pence per share and a special dividend of 14.7 pence.