6th Sep 2007 07:01
HMV Group PLC06 September 2007 HMV Group plc Interim Management Statement 6 September 2007 HMV Group plc will today issue the following trading update at its annualgeneral meeting (AGM). Total Group sales were up 12.2% for the 18 weeks ended 1 September 2007, withlike for like sales up 5.8%. This excludes the result of HMV Japan, the disposalof which was completed on 25 August 2007. At HMV UK & Ireland, total sales were up 12.5% over the same 18-week period,including like for like growth of 9.6%. This performance reflected a strongerthan expected DVD market, continuing growth in games and further market sharegains in all formats, driven by an improved retail offer and competitor capacitywithdrawal. The HMV.com website, which has been enhanced by new branding andcustomer communication, continued to grow by over 100% year on year, therebyincreasing its share of the online entertainment market. HMV UK & Ireland hasmade further progress with gross margin management, which is in line withprevious guidance. In Waterstone's, like for like sales were up 2.7% during the 18-week period,reflecting very strong sales of Harry Potter and the Deathly Hallows. Adjustingfor this impact, like for like sales were flat on the prior year. Total saleswere up 16.4% reflecting the impact of the Ottakar's acquisition in July 2006.Waterstones.com continues to show good progress, with registered users up over90% since the beginning of the calendar year. Waterstone's has continued toimprove gross margins, which were up 40bps on last year, before the impact ofHarry Potter and the Deathly Hallows. In HMV's international businesses, which, following the sale of HMV Japan, nowcomprises HMV Canada and seven stores in Hong Kong and Singapore, like for likesales were down by 1.6% in the last 18 weeks. Following the simplification of the Group's operations, resulting from thedisposal of HMV Japan, Simon Fox will continue as Group Chief Executive andManaging Director of HMV UK & Ireland. At the AGM, Carl Symon, HMV Group plc Chairman, will comment: "The Group has made a pleasing start to the current financial year, with goodmomentum in sales, margins and cost management. Solid progress is being made onour strategic plans announced in March, including a successful disposal of HMVJapan for a consideration which the Board believes represents best value for ourshareholders. Furthermore, this week, HMV UK is opening its first 'nextgeneration' store trials and Waterstone's customer loyalty card is beinglaunched nationally. "At this point in our trading calendar we have much work to do, but we expect toapproach the key Christmas period in good operational shape and with excitingoffers for our customers." As required by the Interim Management Statement provisions, we confirm thatthere has been no significant change in the financial position of the Group inthe period since the Preliminary results to the date of the AGM, save for thecompletion and receipt of the cash proceeds from the disposal of HMV Japan. The Group's next trading update will be at the announcement of its Interimresults on 12 December 2007. Enquiries: HMV Group Brunswick LLPSimon Fox, Chief Executive Susan GilchristNeil Bright, Group Finance Director Eilis MurphyPaul Barker, Head of Corporate Communications Alex Tweed01628 818 300 020 7404 5959 Year to Date Trading Update 18 weeks to 1 September 2007 ----------------------------- Like for like Total sales sales growth growth % %------------------------------------------- ----------- -----------HMV UK & Ireland 9.6 12.5HMV International 1 (1.6) 1.3------------------------------------------- ----------- -----------Total HMV 7.5 10.2Waterstone's 2 2.7 16.4------------------------------------------- ----------- -----------HMV Group plc 2 5.8 12.2------------------------------------------- ----------- ----------- Like for like sales growth and total sales growth are stated at constantexchange rates. 1. Total sales growth of HMV International, total HMV and HMV Group plc excludes the trading result for HMV Japan up to 25 August 2007, the date at which the sale of the business was completed. Total sales growth for HMV Group plc for the 18 weeks ended 1 September 2007 inclusive of HMV Japan was 10.0%. 2. Like for like sales growth of Waterstone's and HMV Group plc is adjusted to include in the comparative period the sales of Ottakar's plc, which was acquired on 3 July 2006. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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