UK retailer HMV has posted financial results for the last fiscal year, with a notable decline in revenue and significant losses, although the results signify an improvement over previous forecasts.
The company is one of the leading video game, music and video retailers in the UK, and currently operates over 250 stores across four countries. It has seen profits from video game sales underperform in recent years, and earlier this year was saved from going under
by an amended waiver from its banking syndicate for its existing borrowings, that allowed it to continue trading.
In a statement, HMV said that the disruption to rival retailer Game
earlier this year, alongside the "changed nature" of its relationship with suppliers, means that the company is confident that it will return to profitability in the current fiscal year.
It also stated that it is seeing "continued progress in developing technology and games sales and encouraging market share growth in all core categories in recent weeks."
For the fiscal year ended 28 April 2012, HMV posted a year-over-year overall decline in revenue of 18.3 percent, with a decline of 19.4 percent for retail in particular. It posted losses of approximately £168 million ($271.6 million).
The company's chief executive Simon Fox noted, "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."