HMV Group PLC on Tuesday reported that its recovery plan was ahead of schedule as full-year profit increased nearly fivefold, boosted by the sale of its unit in Japan.
For the 52 weeks ending April 26, the music and books retailer reported a net profit of 89 million pounds (US$177 million) compared to 16.1 million pounds in the previous year. That included an exceptional gain of 51.8 million pounds (US$103 million) from the sale of HMV Japan.
Profit from continuing operations was 40.8 million pounds (US$81.3 million) compared to 33.2 million pounds in the previous year. Sales rose 11.3 percent to 1.94 billion pounds (US$3.86 billion). Net debt fell from 130.4 million pounds (US$260 million) to 200,000 pounds in the latest year, the company said.
HMV shares were down 4.8 percent at 123.25 pence (US$2.46) in early trading on the London Stock Exchange.
"The figures are, in themselves, decent enough but the company remains embattled in its field," said Richard Hunter, analyst at Hargreaves Lansdown Stockbrokers.
Hunter said the higher revenue, largely from video game sales, was promising.
"Nonetheless, digital downloads are firmly taking hold and, in any event, the presence of online retailers and the supermarkets is exerting severe pressure on their business model."
Chief Executive Simon Fox said the company was ahead of schedule in its transformation plan.
"We still have much to do, and whilst we are mindful of the challenging economic outlook, the current financial year has started in line with our expectations and I remain confident that we are building a better and stronger business that can prosper in a rapidly changing market," Fox said.
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On the Net: http://www.hmvgroup.com
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