HMV expected to ring up dismal figures

By Aita Ighodaro

Published: 25 June 2007 Indie online edition

 

Investors are braced for one of the worst sets of numbers in years from HMV Group on Thursday, confirming dismal analyst forecasts. Initiatives put in place by the retailer to reduce costs, revitalise its core business, and grow revenue, as announced on 13 March, are likely to be too late to improve figures for the last year.

 

Proposed operational improvements include the rollout of electrical products to 20 stores in March and the launch of "store of the future" trials in the West Midlands and Tunbridge Wells this summer.

 

Although sales for HMV.co.uk were reported to have grown by 150 per cent over the 16-week period prior to the announcement, its share of the online market is not comparable in size to organisations such as Amazon and iTunes.

 

While there has been the inevitable rumour mill surrounding a private equity- backed buyout of HMV, most sector observers believe that the traditional music and film retail industry is in terminal decline. Permira's 210p-per-share offer last February seems like an awfully long time ago and there is unlikely to be a large queue of buyers waiting to have a crack at turning the company around. Pre-tax profits of £48m are forecast, less than 50 per cent of last year's figure

Maybe if they weren't so expensive?

HMV are rip off merchants, the more money they lose the better ^_^