A slight sigh of relief for high street and online entertainment retailer HMV: in a trading update today ahead of its full-year results the group announced like-for-like sales up 4.8 percent for the 16 weeks to April 25. In the UK and Ireland total sales were up 11.7 percent — a 4.3 percent increase on a like-for-like basis. The company bought another nine stores previously owned by the Zavvi high street chain, which collapsed before Christmas, taking its total to 23. Bookseller Waterstones, also part of the HMV (LSE: HMV) group, saw its sales decline 4.5 percent in the same period. Market expectations according to the company itself and Reuters Knowledge put its year-end pre-tax profits at between £50.3 million and £63.7 million. Release.
A breakdown and look at HMV’s diversification is after the jump.
HMV is busy diversifying its business as much as possible to counteract possible downturns in consumer spending and long-term changes in behaviour. Today the company announces a partnership with mobile operator Orange to offer mobiles and services initially in 15 stores, with the number possibly rising to 100. HMV has invested £1 billion in a live music joint venture that has now seen three venues co-branded with the HMV name, this week plans were announced to open cinemas above HMV stores.
In 2007/8 HMV made 21 percent of its revenue from games and technology