HMV reports growth in games sales

Entertainment retailer HMV has revealed in its interim results that sales of games have grown by one per cent, in the 26 weeks of 2006, ending October 28th.

The High Street chain is confident of becoming a bigger player in the games retail market, highlighting recent successful partnerships with publishers such as Konami for the launch of Pro Evolution Soccer 6, and Nintendo, for the launch of its Wii console.

It also singled out success with recently released hardware such as the PlayStation Portable, DS and Xbox 360.

Overall however, HMV revealed Group sales of GBP 767.2 million, but an operating loss totalling GBP 31.8 million.

"The markets in which we operate continue to be very difficult," said chief executive Simon Fox.

Over Christmas, Group sales were up 10.3 per cent in the five weeks ended January 6th 2007, with HMV UK and Ireland seeing sales rise by 3.7 per cent, including a like for like growth of 0.7 per cent.

"We delivered an improved performance at Christmas, particularly at HMV UK where we achieved strong gains in market share," added Fox.

Another sector where the company has seen success is online, with sales via hmv.co.uk growing by 200 per cent.

"The actions the Group has taken to improve its competitive position are yielding benefits, but these are not sufficient to offset the profound changes taking place in our markets,â commented Fox. âWe will do more to build upon initiatives taken in 2006 to drive the business forward."

The company has also seen games software and hardware take a 5 per cent portion of sales in its Canadian stores, where games have most recently been introduced.