HMV earnings helped by demise of rivals

Music and games group HMV today said the demise of rivals and benefits from its turnaround plan had boosted profits in a “difficult” retail climate.

The collapse of Woolworths and rival Zavvi late last year has helped HMV grow market share and it is “confident” over the current year.

The retailer has also upped the roll-out of its “next-generation” revamped stores, lifted online sales and is moving into the fast-growing live music market through a joint venture with venue operator MAMA Group.

HMV’s pre-tax profits for the year to April 25 were 11.5% ahead at £63m (€74.5m), slightly ahead of consensus forecasts.

“We are working hard to maximise both the market share opportunity that has arisen from the withdrawal of competitors, and the investments that have been made over the last two years to improve performance,” HMV said.