HMV posts annual loss as sales decline

HMV logo HMV has struggled with competition from online music downloads

Troubled music, films and games retailer HMV has posted an annual loss due to falling sales and restructuring costs.

It posted a pre-tax loss of £38.6m in the 12 months ending in April, compared with a flat figure a year earlier.

HMV's like-for-like sales were down 12.1%, as it continues to be hit by increased competition, particularly from music downloads.

Its restructuring costs totalled £11.1m, which included job cuts.

The company, which closed a head office, also restructured its European operation.

'Challenging'

The release of its annual results came a week after HMV announced that its chief executive Simon Fox will be stepping down in September after six years in the role.

He is being replaced by Trevor Moore, a former boss of camera retailer Jessops.

During the financial year HMV closed stores and sold its Waterstones book chain, as well as the entertainment venue Hammersmith Apollo.

It is also selling HMV Live, which owns 13 live music venues and operates five music festivals in the UK.

HMV said it expects to return to profitability in the next financial year.

Mr Fox said: "The last year has been a difficult and challenging one for HMV... However, we are confident that the actions we have taken will enable us to significantly improve cash generation and make profits of at least £10m in the year ahead."

More on This Story

Music Retailing

The BBC is not responsible for the content of external Internet sites

More Business stories

RSS

Features & Analysis

Elsewhere on BBC News

  • bikeWheels of change

    Ten new bikes that are reinventing the humble two-wheeler for the 21st Century

Programmes

  • A bird of prey in a Tokyo animal cafeThe Travel Show Watch

    From cats to rabbits and birds of prey – Tokyo’s flourishing animal cafe scene

BBC © 2014 The BBC is not responsible for the content of external sites. Read more.

This page is best viewed in an up-to-date web browser with style sheets (CSS) enabled. While you will be able to view the content of this page in your current browser, you will not be able to get the full visual experience. Please consider upgrading your browser software or enabling style sheets (CSS) if you are able to do so.