HMV, the music, DVD and books retailer, has reported a narrowing in first half operating losses, driven by strong demand for computer and video games and said it is well set up for the crucial Christmas trading period.
For the 26 weeks to October 27th the group made an operating loss before exceptional items (from continuing operations) of £21.5 million sterling (€29.9 million) versus a loss of £24.8 million in the same period last year.
The retailer makes all its annual trading profit in the second half, the majority in the run-up to Christmas.
The group recorded a total profit after tax of £25.9 million compared to a loss of £26.1 million last time, including profit after tax on disposal of HMV Japan of £49.2 million, giving total basic earnings per share of 6.5 pence versus a loss per share of 6.5 pence.
Total sales were £790.2 million, up from £767.2 million.
Total sales from continuing operations were up 9.5 per cent, while like-for-like sales, which strip out the impact of new and closed space, were up 5 per cent.
Within this like-for-like sales were up 9.2 per cent at HMV UK & Ireland and up 1.4 per cent at Waterstone's.
During the period net debt was cut by £89.3 million to £46.4 million. The interim dividend was maintained at 1.8 pence.