Pre-Close Update

HMV Group Pre-Close Update

4 May 2012

Trading update

17 weeks ended 28 April 2012

·; Retail LFL at (12.9%), reflecting a very weak January and gradual improvement in the following months

·; Continued progress in developing technology and games sales and encouraging market share growth in all core categories in recent weeks

52 weeks ended 28 April 2012

·; Year-end Net Debt expected to be approximately £168m, representing an improvement on our previous forecast

·; Group PBT in the region of (£16m) for 2011/12. This is lower than previously expected reflecting a weak new release schedule in CDs and DVDs in the final quarter

Outlook & Strategic Review

·; Looking forward into 2012/13, reflecting the disruption to GAME plc and the changed nature of our relationship with key music and film suppliers, the company is confident that it will return to profitability. At this stage we expect PBT to be at least £10m for 2012/13 (analyst consensus for 2012/13 is a PBT loss of around (£5m)).

·; The strategic review of the Live business is ongoing and further announcements will be made as and when appropriate.

Commenting, Chief Executive Simon Fox said:

"The last year has been a difficult and challenging one for HMV and this will be reflected in our annual results. However we are confident that the actions we have taken will enable us to significantly improve our profit and cash generation in the year ahead."

Notes

1. Like for like sales (decline) growth and total sales (decline) growth are stated at constant exchange rates.

Enquiries

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