HMV Group plc : Interim Management Statement

Interim Management Statement

21 September 2012

HMV Group plc, the UK's leading retailer of entertainment products, today announces its interim management statement for the 20 weeks ended 15 September 2012.

Trends in HMV Retail were broadly unchanged during the period under review, with a like for like sales decline of 11.6%.  Sales of portable digital technology devices, products and services continue to grow strongly, driven by the programme of store refits and the continuing evolution and development of our in-store service proposition.  As anticipated the summer has seen a very quiet new release schedule in the Group's core music, visual and games markets and, whilst the Group has increased share in these markets, it has continued to experience significant market value declines.  Including the impact of previously announced store closures, total Group sales declined by 14.8%.

The Group completed the disposal of the Hammersmith Apollo for £32m, which enabled it to successfully amend the terms of the existing £220m Bank Facility with the existing lenders and extend the Facility by a further year to September 2014.  The strategic review of the remaining HMV Live business is ongoing.

Trevor Moore, Chief Executive, said: "These numbers reflect the challenging markets in which we operate. However, the like for like decline was less marked towards the end of the period and we should be helped in the remainder of the year by a strong pipeline of new releases in the music, DVD and games markets ahead of Christmas."

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Notes

1.     HMV Retail comprises the results of HMV UK, Ireland, Hong Kong and Singapore.

2.     Like for like sales (decline) growth and total sales (decline) growth are stated at constant exchange rates.