(Reuters) - GameStop reported a nearly 22% rise in second-quarter revenue on Tuesday, as the videogame retailer's efforts to revive its struggling business began to pay off, sending its shares up about 3% in extended trading.

The company's revenue increased to $972.2 million during the period, compared with $798.3 million a year ago.

Once a dominant force in physical retail, GameStop has seen its market share erode over the years due to its slow shift toward digital purchases, while e-commerce giants such as Amazon have become go-to destinations for gaming and general merchandise.

Still, the company's collectibles business has shown resilience, with revenue surging 63% in the second quarter, as a strong merchandising strategy centered on pop culture attracted a diverse consumer base.

(Reporting by Zaheer Kachwala in Bengaluru; Editing by Shilpi Majumdar)