HMV profits drop as it shifts towards gadgets and tickets


Entertainment retailer HMV has announced its latest financials, which saw annual profits drop 61% to £28.9 million – which turned into a loss of £121.7 million after tax and non-cash impairments charges. “We continue to operate in a challenging macro environment, and the core retail markets in which HMV trades also remain difficult,” says the company in a statement. “However, we have taken decisive action to restructure the group, and have a clear strategy for transforming HMV into a broad-based entertainment business.” The company’s shares fell again following the announcement, with the company’s market cap now just £48.5 million. The Guardian has more information on HMV’s plans to make more money from gadgets, with plans to devote 25% of floor space in its stores to MP3 players, tablets and headphones. “Consumer electronics companies aren’t making CD players any more. When acts like Lady Gaga and Justin Bieber come into our stores it is to promote their headphones,” says CEO Simon Fox. HMV is also planning to ramp up its ticketing business, including buying more venues. Source: Billboard

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