ClickAJob News

Music and books retailer HMV has reported a better-than-expected start to the year, with the company's performance in the UK having been partially driven by stronger DVD sales and continuing growth in the games market.

In a statement today HMV revealed that total group sales were up by 12.2 per cent for the 18 weeks ending September 1st, while like-for-like sales were up 5.8 per cent.

The figures exclude the performance of HMV Japan, the sale of which was completed on August 25th.

In the UK, total sales were up 12.5 per cent over the 18-week period, with like-for-like growth up by 9.6 per cent.

HMV's book chain Waterstone's was boosted by "very strong sales" of the final Harry Potter novel. The popularity of Harry Potter and the Deathly Hallows saw like-for-like sales at Waterstone's jump by 2.7 per cent over the same 18 weeks, while excluding the impact of the book revealed that like-for-like sales remained flat when compared to the prior year.

Total sales at Waterstone's were however up by 16.4 per cent, with HMV attributing the rise to its acquisition of rival bookseller Ottakar's in July 2006.

Ahead of its annual general meeting (AGM), HMV also stressed that it had been able to increase its share of the online entertainment market through its website, HMV.com.

Commenting on the results, HMV group chairman Carl Symon said: "The group has made a pleasing start to the current financial year, with good momentum in sales, margins and cost management."

"At this point in our trading calendar we have much work to do, but we expect to approach the key Christmas period in good operational shape and with exciting offers for our customers," he added.

Today's trading statement is likely to be welcomed by HMV investors, with the company having announced in June that its annual underlying pre-tax profit more than halved to £48.1 million.

HMV has been struggling to maintain its share of the book and music markets amid growing competition from the UK's supermarkets and online retailers.