Musicmagpie shares surge following record Black Friday

14th Dec 2023 07:16

(Sharecast News) - Online retailer Musicmagpie said on Thursday that record Black Friday sales had led to a surge in underlying earnings and helped offset a softer first-half performance.

Musicmagpie said full-year revenue was now expected to be £136.6m, with consumer technology revenues up 7.5% year-on-year in the second half. Overall gross margins expanded to 27.7% from 26.2% as it continued to focus on margin expansion as opposed to revenue growth.

The number of active rental subscribers grew by 21% in the year reaching 37,100, with total rental revenues for the period were £8.3m, up 57%.

As a result of the gross margin increase and ongoing tight cost control, as well as the strong end to the year, EBITDA was expected to be up 15.4% at £7.5m.

Musicmagpie added that whilst "challenging consumer environment and inflationary pressures continue", it was "encouraged" by its H2 performance and remains confident in its strategy and medium-term prospects.

Chief executive Steve Oliver said: "We are pleased with the performance of the Group in the second half of the year, and are delighted that our focus on profits and cash has delivered significant EBITDA growth.

"I remain confident in the business and our ability to navigate the difficult external market conditions."

As of 0830 GMT, Musicmagpie shares had shot up 16.43% to 13.39p.

Reporting by Iain Gilbert at Sharecast.com