Icy weather affects HMV peak season

9 Dec 2010

HMV Group, the music, DVD and gaming retailer, saw its first-half loss widen in the UK and Ireland and said the severe weather conditions have affected the peak Christmas season.

According to Bloomberg, because of the snow and ice, shoppers in the UK and Ireland have avoided venturing out, meaning HMV’s business has been “undermined” in the last two weeks.

The group’s shares were down by 21pc, the lowest intraday drop since its IPO. It will add loyalty cards and move into live music venues and festivals in order to boost sales.

HMV also noted its first-half loss has widened due to weaker demand, cutting its dividend by 50pc as a result.

The net loss for this half, ending in 23 October, was stg£31.3m, up from ST£17.8m the previous year.

Revenue fell by 6pc to stg£749.4m, seeing sales from HMV retreating 15pc.