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HMV has reported a 200 per cent growth in online sales during the last half-year.

Releasing its interim results for the 26 weeks ending October 28th 2006 and the Christmas trading period, the music and DVD retailer announced strong festive sales growth but an overall operating loss.

Christmas sales for the group were up by 10.3 per cent, with its book division, Waterstone's, showing a total sales growth of 39.2 per cent.

Despite the strong online and Christmas sales, the interim results reported an overall operating loss of £31.8 million and an overall life-for-like sales decline of 5.5 per cent, a fall that was offset by the acquisition of Ottakar's during the period.

"The markets in which we operate continue to be very difficult. However, we delivered an improved performance at Christmas, particularly at HMV UK where we achieved strong gains in market share," said chief executive Simon Fox.

"The actions the group has taken to improve its competitive position are yielding benefits, but these are not sufficient to offset the profound changes taking place in our markets. We will do more to build upon the initiatives taken in 2006 to drive the business forward, and we will be updating the market with those plans in March."

The group also announced a change in management to take effect from the end of this month. Steve Knott will be standing down from his position as managing director of HMV UK and Ireland. He was appointed to the position in May 2003.

He will also be stepping down from the group's board of directors; a replacement has not yet been announced.