MusicMagpie earnings in line with expectations in H1

MusicMagpie has revealed that first half EBITDA increased 7.7%, a figure that is in line with board expectations, for the unaudited period ended 31 May. 

The news comes after a “challenging” start to the year, with postal strikes and low consumer confidence impacting December and January sales. 

However, the group’s trading performance strengthened from February onwards, driving a “strong” second quarter that delivered EBITDA of £2m – a 42% increase on the same period last year. 

According to the group, it focussed on cost control and increasing gross margins during the period rather than growing revenues on lower margin products. 

As a result, consumer technology revenue for the first half was £41.2m, comprising two thirds of total revenue compared with £46m in the same period last year. 

Meanwhile, sales of disc media and books continued their “anticipated” decline, falling to £20.8m compared with £25.3m in the same period last year.

In addition, the group has announced that it has extended its £30m revolving credit facility by one year to provide committed facilities through to July 2026, as net debt on 31 May stood at £13.7m. 

The board said it is confident in the group achieving its full year expectations, whilst remaining cognisant of the current tough consumer market.

Steve Oliver, CEO and co-founder of MusicMagpie, said: “We are pleased with our performance in what is always the seasonally quieter half of the year for musicMagpie. It is especially gratifying to see that our profit improvement has been driven by an increased margin. 

“While we remain very mindful of the current tough consumer environment, the momentum in our business as we head into H2 means that we are confident of achieving our full year expectations.”