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HMV revenues slashed in half by the pandemic

  • 10/11/202110/11/2021

HMV has issued its financial results for the 12 months to May 30, 2021 – and they make sobering reading.

While the retailer has been open for business again since April in England and Wales, the period covered by its strategic report included several months of closure at HMV.

The entertainment chain, which celebrated its centenary this year, had 106 HMV and Fopp stores in the UK in May this year. Despite the impact of the pandemic, most stores returned to trading.

During the 12-month period, revenues at HMV dived from £187.9 million in 2020 to £90.4 million – a drop of 51.9%. Gross profit decreased by 52.8% year-on-year to £39.7m, while EBITDA was actually up 122.2% to £920,000. 

HMV registered an operating loss of £231,000 (£187,000 in 2020).

“The decline in turnover is primarily down to the government lockdown, which meant stores were closed for the majority of the year,” said HMV’s strategic report.

HMV’s directors remain “confident” about managing any future disruption. The retailer has also invested in its online sales platform.

“Traffic to the UK High Streets has been in decline for a number of years as customers increasingly shop online,” added the report. “Footfall decline risk is being managed by offering products with sufficient exclusivity or collectibility that customers will make specific trips to the HMV stores to shop.”

HMV is likely to benefit from a strong Q4 including albums from ColdplayEd SheeranABBA and Adele.

Subscribers can click here for our HMV centenary feature.

https://www.musicweek.com/labels/read/hmv-revenues-slashed-in-half-by-the-pandemic/084609