HMV looks to electronics and tickets as profits drop


Business digest: Chain sees huge losses as it struggles to stay afloat

LAST UPDATED AT 17:35 ON Thu 30 Jun 2011

HMV is hoping to turn around its fortunes by focussing on live music and ticket sales, after its pre-tax profits dropped 61 per cent to £28.9m in the last year.

The entertainment chain saw like-for-like sales fall by 11 per cent. Further, it is saddled with large debts, which grew from £67.6m last year to £170.7m this year.

However, HMV has made £53m from its recent sale of book chain Waterstones, and a further £2m from its Canadian stores. This money will go towards reducing its debt.

Its new strategy will also involve stocking more electronic good, such as iPods and tablet computers.

Read a full report at the Financial Times (subscription).

For further concise, balanced comment and analysis on the week's news, try The Week magazine. Subscribe today and get 6 issues completely free.

Read more about:

Read next

Rupert Murdoch
Business: Sky deal