Phil Elliott
09:09 (BST)
01/07/2008
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HMV sees net profit more than double
Music and games retailer HMV has announced its preliminary results for the 2008 financial year, showing that growth in the videogames business has helped the company to more than double its net profit, from GBP 14.2 million to GBP 37.3 million year on year.
Games and technology accounted for 21 per cent of HMV's total business across the year, up from 14 per cent last year, which - along with the sale of HMV Japan - helped the company to bring net debt down from GBP 130.6 million to just GBP 0.2 million in twelve months and offset last year's purchase of book chain Ottaker's.
Total group revenue, which also incorporates the Waterstone's chain as well as HMV stores internationally, hit GBP 1.87 billion, up 11 per cent from last year's GBP 1.68 billion.
In a statement the company pointed to the success of a new focus in-store on games and technology, and noted its intention to sell second-hand games in the coming year.
"We also embarked on successful trials of a 'next generation' store format, featuring a social hub providing access to entertainment websites, multi-player games zones and transactional kiosks.
"All product lines in the trial outperformed the rest of the chain, providing a basis in the coming financial year to convert 10-15 stores and open all new stores in the new format.
"We continued to enhance our credibility with customers and suppliers in the fast-growing games console and software market, and are planning to launch a pre-played games offer in 2008/09."
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