DVD sales and rentals of ‘Mrs Brown’s Boys D’Movie’ are largely driving profits at the newly combind Xtravision/HMV business this year, the company has said.
Managing director of the combined business in Ireland, Larry Howard said yesterday that the Brendan O’Carroll movie has become the fastest selling DVD in Xtra-vision’s history.
Almost 25,000 DVD copies of the movie have been sold by all retailers in Ireland this week, according to Mr Howard, who added that the title had the biggest selling opening weekend in Xtravision’s history, including such historically popular movies like Titanic.
Mr Howard said that “queues were out to the door in our stores with people looking to rent out the DVD. It is a testament to the franchise’s sheer popularity.”
He added that the Mrs Brown’s Boys, along with Game of Thrones and Love/Hate DVDs will help deliver an operating profit at Xtravision/HMV in 2014.
Mr Howard was commenting on new accounts filed by the holding firm for the two businesses, Oxtermount Ltd, which show an operating profit of €3.1m on revenues of €48.8m in the seven months to the end of December last.
Turnaround specialist, HILCO Capital Ireland purchased the two brands and Mr Howard – the company’s managing director - said that the operating profit “is a very good start”.
HILCO is now operating 110 stores with nine stand-alone HMV stores; 51 Xtra-vision/HMV outlets with the remainder Xtravision.
The group now employs 1,100 people. Mr Howard said that September was a very poor month, but the businesses have “rebounded very strongly in the last two weeks”.
A breakdown of revenues show that E42.6m was generated in the Republic with E6m generated in Northern Ireland.
Staff costs last year totalled €9.1m with directors’ remuneration totalling €175,000.
Mr Howard said that HILCO has invested E10m in the two businesses. According to the directors’ report “during the period, the business has grown significantly with substantial increases in market share in its core film retail and music categories”.
It further stated: “The group also negotiated its property leases with lower annual rents and shorter lease terms.”
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