HMV revenues fall by 40 per cent
Half-year results show impact of restructuring and tough market conditions
The HMV Group has reported a 40 per cent decline in revenue in its half-year financial results.
For the 26-week period ended 29 October 2011, HMV posted £443.3 million in revenues, a 40.8 per cent drop over the same period last year.
The company made a net loss of £40.6 million, up from last year's loss of £37.8 million. It now has underlying debt of £163.7 million.
The drop in revenues is partly due to the sale of Waterstones and HMV Canada, but the report also warns of "material uncertainties" created by the current economic environment that, "may cast significant doubt on the Group's ability to continue as a going concern in the future."
During the 26-week period, HMV also restructured its 144 retail stores to focus more on technology and portable digital products.
"This has been a challenging start to the year. However, we have taken decisive action to restructure the business and are now seeing the benefits of this, particularly in our Technology products business," said CEO Simon Fox in a statement.
"Like all consumer-facing companies we are facing tough trading conditions but we continue to push forwards through this period. We remain well prepared for the key trading days ahead."