Heavy investment led to pre-tax losses for the Irish arm of HMV, despite a growth in revenue.
The 12 months to the end of January 2015 saw the chain open stores in Dublin and Galway. Investing over €600,000, the business also increased its marketing spend and renegotiated terms with its suppliers.
Revenue more than doubled as a result, from €9.67m to €19.66m, though this led to short term losses. HMV’s operating profit declined by 75% from €1.03m to €254,000
Regardless, HMV’s director’s report claimed these figures were in line with yearly targets, emphasising that the firm achieved “significant market share growth in both its core and music markets”.
Recent figures from Kantar Worldpanel revealed that in the 12 weeks to 10 April this year HMV managed to overtake Tesco to become number two for physical entertainment retail, behind Amazon.