Business News HMV Timeline Retail

HMV losses widen

By | Published on Thursday 9 December 2010

HMV’s figures for the first half of the current financial year were released this morning, and while the City expected them to be a bit disappointing, the firm’s share price still took a hit on the news that losses were higher than expected and dividend pay outs would be cut.

CEO Simon Fox also admitted that recent bad weather had impacted on the retailer’s all important Christmas sales period, which is so vital to a company like HMV that it’s always the second half of the financial year – containing, as it does, the Christmas shopping period – during which HMV makes any real profits.

Despite diversifying the product range in its stores, HMV still faces increased competition from the supermarkets, mail-order websites and, with regards its traditional product areas of music, DVD and games, digital content platforms.

The wider HMV Group has, of course, diversified even further by taking a stake in digital music service provider 7Digital and ownership of the MAMA Group of venues, festivals, talent management agencies and brand partnership businesses. Some speculate that those acquisitions actually make HMV’s long term future more secure than most City types realise, possibly making the company – with its slumping share price – a possible takeover target.



READ MORE ABOUT: | |

SIGN UP GO PREMIUM CMU NEWS CMU DAILY CMU DIGEST CMU TRENDS SETLIST