British music and books retailer HMV Group forecast full-year profit at the top end of market hopes, boosted by market share gains following the demise of Woolworths and Zavvi.
The 88-year-old firm also announced today a concession partnership with France Telecom's Orange to offer mobile phones and services, and a deal with Curzon Cinemas to trial digital cinemas.
These developments, along with a plan to enter the live music market announced in January, continue to reposition the HMV brand away from its traditional music base into a broad entertainment retailer.
"Our vision is getting customers closer to the content that they love," chief executive Simon Fox told reporters.
He said group profit before tax and exceptional items for the year to April 25th would be towards the upper end of market expectations.
Prior to today's update these were pitched at between £50.3 million and £63.7 million ($74 million-$94 million). In 2007-08, HMV made £56.6 million.
Shares in HMV have increased in value by 18 per cent over the past year, outperforming the UK's general retail index by 31 per cent.
HMV, which runs music, DVD and video games shops under its own name as well as Waterstone's bookstores, said underlying sales in the 16 weeks to April 25th were flat year-on-year, ahead of analyst forecasts for a fall of about 1.5 per cent.
Sales at HMV UK and Ireland shops open at least a year were up 4.3 per cent, reflecting "double-digit" volume growth in music and DVDs, as well as continued growth in video gaming despite a softening of this market since Christmas.
"We're working hard to take advantage of the opportunities arising from the changes to our competitive landscape that have taken place since Christmas," said Mr Fox.
Reuters