HMV Profits Surge On Video Game Demand

UK based music and entertainment retailer HMV has attributed a rise in first half profits to a surge in demand for video game products in its latest financial results, which show a profit of £25.9 million ($53.0m) in the six months ended October 27th. The results compare to a loss of £26.1 million ($53.4m) at the same time last year, while overall sales rose by 3 percent to £790.2 million ($1.62bn). Apart from the sale of its Japanese unit in July for ¥17 billion ($152.6m), the company has indicated that demand for video games and console has been the primary catalyst for the improvement. Games related sales generated 15 percent of revenue at the company’s UK and Irish chains, with same-store sales increasing by 9.2 percent in the face of a declining music market in the two countries. Noting that the Wii is in “extremely short supply,” CEO Simon Fox also spoke of the company’s current plans to roll out “next generation” stores with download terminals for music content. The company also recently opened an in-store gaming centre in its flagship London store, with more than 70 PCs used for promotional events and tournaments, as well as a similar set-up for consoles in its main Edinburgh store.