British global entertainment retail chain anticipates getting around £10m of pre tax profit in 2012/13, despite the fact that the majority of analysts predict a loss of about £5m.
Last year company made a huge loss of £16m. HMV says that the main reason of it is quite a weak albums’ and DVDs’ release schedule.
As for year sales at stores, they decreased by 12.9% in the three months to 28 April.
Simon Fox, who is currently CEO of the entertainment chain, asserts that company’s new strategy is expected to give a boost to sales of technology and digital (music and film) content and to result in “encouraging” market share growth.
HMV also makes a bid for capitalization on the disruption to rival Game and hopes in such a way increase its gaming market share. The first attempts in this space have already been accomplished.
Company’s efforts have already started to pay off. According to the latest report published by Kantar Worldpanel, chain’s entertainment market share has risen by 1.7%. In the same time, Amazon Company, which plays the first role, has lost 2.5% of market share.
HMV’s Live business, which comprises music events, venues and festivals, is still in the process of reviewing and can possible be sold.
Simon Fox, HMV’s chief executive, agrees with the fact that last year was a difficult and a challenging one. However, he is absolutely sure that the company has taken right measures, which will result in significant profit improvement in the forthcoming year.
Moreover, HMV has also launched a campaign aimed at marking the Queen’s Diamond Jubilee. The company is planning to realize it by inviting music fans to choose the best British film and album of the last six decades. By the way, the most active participant has a chance to get the Top 60 films and albums.