HMV reports 17.7% jump in pre-tax profits, owing to “three pillar” strategy

Entertainment retail chain HMV has reported a jump of 17.7 per cent in pre-tax profits to £74.2 million for the period of one year to April 24.

Total sales climbed 3.1 per cent to settle at £2.02 billion, thanks to retailer’s “three pillar” strategy of new products, live music and reviving the Waterstone’s book chain.

However, retailer has seen slowdown in trading due to the football world Cup. Like-for-like sales dropped at Waterstone's by around 6 per cent during the past one year period, but the retailer hit an optimistic note on technology-related book products.

HMV stores, which are now offering mobile phones and Blu-Ray discs, are focusing on local customer demand.

Speaking on the topic, HMV Group's CEO Simon Fox said, "As expected the World Cup has been a negative impact on our business. It does keep footfall away from stores and our suppliers don't tend to release big new products over the period."

HMV has been established as a major player in the live market after it acquired venue owner MAMA Group for £46 million. MAMA brought it festivals such as Lovebox and venues like London’s Hammersmith Apollo.

Shares in HMV Group jumped 10.5 per cent to 63p-a-share.