HMV lifted by strong DVD sales
LONDON, England -- HMV, the UK music and book retailer group, says its annual earnings jumped 22 percent last year due strong growth in DVD sales despite growing online competition.
The group, which owns HMV and Waterstone's, said Wednesday that pre-tax profit was £117.6 million ($214 million) for the year to April 24. Analysts surveyed by Reuters had estimated earnings of between £114-117 million.
There was also a 5 percent rise in turnover -- to £1.79 billion -- led by DVD sales, one of HMV's more profitable products.
HMV said year-end net debt fell to £57.8 million and the group said it would decide in the next few months how to best use the anticipated increase in future cash.
"The options under consideration include strategic investments in the emerging market for digital downloading and a program of on-market share buybacks,'' the company said in a statement.
"The group expects to comment further in the next few months.''
HMV said it was determined to become "a major force'' in legal digital downloading but will select its investments with considerable care.
Sales for the eight weeks to June 19 were up 3.9 percent including like-for-like growth of 1.4 percent which compared with 1.8 percent growth for the year just ended.
"We look forward with confidence to the important autumn and Christmas trading periods,'' said Chief Executive Alan Giles said in a statement.
