HMV shares plummet as freezing weather hits sales
Business digest: Music retailer slashes dividend by half as losses increase
HMV has blamed the freezing weather for poor sales in the peak Christmas season as it slashed its dividend. Shares in the group, which owns Waterstones, fell sharply.
Revealing that its losses for the six months up to October increased to £31.3m - up from £17.8m last year - the entertainment retailer cut its dividend by 50 per cent to 0.9 pence per share.
The news was met with a sell-off today, with HMV shares falling 21 per cent to 34.75p in early trading - a level not seen since the company floated on the stock market.
HMV said it was reducing its dividend "in light of the continuing weak entertainment markets, the uncertain consumer outlook and the consequent impact on the earnings profile of the group".
HMV has been diversifying into live music and loyalty cards in a bid to offset falling retail sales.
Read a full report at Business Week. ·
Comments are now closed on this article