MusicMagpie swings to interim loss

27th Jul 2022 09:43

(Sharecast News) - MusicMagpie said on Wednesday that it swung to an interim loss after revenue in the disc media and books segment fell as the pandemic boost faded.

In the six months to the end of May, the company swung to an adjusted pre-tax loss of £0.7m from a profit of £4m in the same period a year earlier, while revenues dipped to £71.3m from £72.8m. The group said growth in the consumer technology division largely offset the expected post-pandemic reduction in the disc media and book unit.

Consumer technology revenue, which makes up about 65% of group revenues, rose 15.9% to £46m. Meanwhile, disc media and books revenue declined 23.6% to £25.3m, with the prior year having benefitted from lockdowns.

MusicMagpie hailed "strong" progress from its device rental subscription service, which saw active subscriptions rise to 24,000 from 7,500 a year earlier.

Chief executive Steve Oliver said: "I am pleased that the business has delivered a strong performance in our strategically important consumer technology division, which now represents two-thirds of our total revenue.

"Notwithstanding the challenges presented by the current macroeconomic uncertainty, we expect consumers will continue to seek ways to raise cash and save money and as a result, we are confident that the business is well positioned for future growth in H2 2022 and beyond."

At 0950 BST, the shares were down 9% at 45.50p.