Video Game Sales Boost HMV Profits

Officials from UK based retailer HMV have revealed details of the company’s full year financial results, in which profits rose more the fivefold. The sharp increase was attributed directly to video games revenues, as well as the sale of its Japanese outlets. Net income rose to £89 million ($177.3m) in the year ended April 26th, following the sale of the company’s Japanese business for £51.8 million ($103.3m) to Daiwa Securities Group. Sales of video games also rose by 18 percent, as stores began to dedicate more space to console and PC titles. The company indicated that video game and technology sales now accounted for 21 percent of all revenues in the UK and Ireland, up from 14 percent the previous year. Overall revenue growth rose to 10 percent in the fourth quarter, with same store sales up by 9.4 percent. Christmas sales were the strongest since the firm’s initial public offering in 2002. Sales in refurbished “next generation” stores increased by 25 percent, with the retailer now planning to revamp between ten and fifteen more in a similar manner – as well as opening five new stores. “One year into our transformation plan, group profits are up by 25 percent and we are ahead of where we expected to be,” said CEO Simon Fox. “We still have much to do, and whilst we are mindful of the challenging economic outlook, the current financial year has started in line with our expectations and I remain confident that we are building a better and stronger business that can prosper in a rapidly-changing market.”