HMV losses narrow as sales rise

HMV has reported financial results for the first half of its fiscal year - the 26 weeks to October 24, 2009 - noting that losses narrowed from GBP 19.8 million last year to GBP 17.8 million this year.

At the same time total sales were up by 5.6 per cent to GBP 797 million, while HMV UK & Ireland sales jumped 12.8 per cent.

During that time the company acquired 32 stores from former High Street rival Zavvi - which later reinvented itself as an online-only presence - while it also purchased a 50 per cent stake in 7digital, a digital media delivery company.

"In a tough consumer environment, the Group's performance during the first half was solid, with good trading in HMV UK & Ireland offsetting weaker trading in HMV International and Waterstone's," read a statement.

"We have continued to make good progress on the initiatives that comprise the Group's strategic and operational review, which was announced on 13 March 2007, whilst further extending the reach of HMV into live and digital, where we believe there are attractive opportunities to create significant growth for the long term."

With respect to videogames the retailer noted a 2.2 per cent increase in its market share, aided by its pre-owned titles scheme, despite a 32 per cent value decline in the market overall.

HMV shares opened down slightly this morning, but quickly jumped to stand at 2 per cent up for the day on 108.6 pence at the time of writing.