Music Magpie first-half revenue down slightly in ‘challenging economic environment’

Electronics and entertainment retailer Pie Music said middle incomes contracted only slightly in the six months to May 31 despite “a difficult economic environment”.

Music Magpie said total revenue for the period was £71.3m, which was slightly lower than the £72.8m reported a year earlier. As part of this, sales of the company’s consumer technology products division increased by 15.9% to £46.0 million, while sales of disc media and books fell by 23.6%. % to £25.3million as she said the previous year had benefited from increased sales during Covid-19. blockages.

The AIM-listed group noted that year-over-year growth in outright product sales in its consumer technology division had been “intentionally tempered” by the promotion of its subscription service. monthly rental under contract – this line of business expected to generate higher revenues. and the underlying profits over the lifetime of a device, as opposed to a single sale.

“Margin performance for the first half of consumer technology was in line with management’s revised expectations as set forth in the March 2, 2022 full-year results. This, combined with the normalization of media sales record and books, resulted in an unaudited adjusted EBITDA for the first six months of the year of £2.6m (2021: £6.2m),” Music Magpie said.

“While acknowledging the current uncertain economic environment faced by all consumer companies, the Board is confident to achieve its full year expectations with a much stronger second half earnings performance. thanks to an increased contribution from growing rental subscribers alongside continued revenue growth expected from the recent expansion of marketplace sales channels, including Back Market, which the group recently launched with hit.”

At 09:05 BST, shares of Music Magpie were up 2.50% at 51.25p.

Reporting by Iain Gilbert on Sharecast.com