HMV sees profits near top of range

HMV Group said it was confident full-year profits would be towards the upper end of market expectations, driven by strong demand for games, boosting its shares by more than six per cent.

"HMV has clearly benefited from a strong games market. However we continue to outpace this fast-growing market," chief executive officer Simon Fox told reporters on a conference call yesterday.

"It's a good market and we're certainly expecting double-digit sales growth from games in the year ahead".

HMV, which owns bookseller Waterstone's as well as music shops under its own name, said group like-for-like sales grew by 10.1 per cent in the 16 weeks to April 26, and by 7.3 per cent for the full year.

Like-for-like sales at HMV UK and Ireland grew 13.8 per cent in the last 16 weeks of the year to April 26 and by 11.4 per cent for the year as a whole.

Mr Fox said that stripping computer games out of the numbers, HMV UK's like-for-like sales growth was more than eight per cent in the 16 weeks, reflecting "accelerating market-share gains" in music and DVDs.

Like-for-like sales at Waterstone's climbed 6.6 per cent in the last 16 weeks and by 3.3 per cent for the year.