Increased game sales help HMV more than double profits
HMV has announced its preliminary results for the 2008 financial year, showing growth in its video games sales has helped the company more than double its net profit.
In hard figures, that's a jump from £14.2m to £37.3 in one year.
Games and technology accounted for 21% of HMV's total business across the year, up 14% from last year. This, alongside thesale of HMV Japan has helped the company squash its debt from £130.6m to just £200,000 in 12 months, even offsetting the cost of last year's purchase of book chain Ottaker's.
Total group revenue, which includes the Waterstone's chain and HMV stores internationally, hit GBP 1.87 billion - up 11% on the previous year.
Speaking of its success in a statement, the company pointed its success towards a new focus on games and technology in-store, and also noted that it was looking to sell second-hand games in the next year.
It read: "We also embarked on successful trials of a 'next generation' store format, featuring a social hub providing access to entertainment websites, multi-player games zones and transactional kiosks.
"All product lines in the trial outperformed the rest of the chain, providing a basis in the coming financial year to convert 10-15 stores and open all new stores in the new format.
"We continued to enhance our credibility with customers and suppliers in the fast-growing games console and software market, and are planning to launch a pre-played games offer in 2008/09."