// Music Magpie’s group revenue declines to £71.3 million from £72.8 million in the six months to 21 May
// The business also reported strong progress from its device rental subscription service, increasing to 24,000 active subscriptions from 7,500 the previous year
MusicMagpie has slipped to a pre-tax loss as it battles with “well-documented headwinds in the market and squeezed wallets for consumers”.
Despite this, the ecommerce business said it achieved a strong performance in its strategically important Consumer Technology division, which now represents two thirds of its total revenue.
The Stockport-based company’s revenue declined to £71.3 million from £72.8 million in the six months to 21 May, however during the period, consumer technology revenue jumped by 15.9% to £46 million from a year earlier, while disc media and books revenue dropped by 23.6% to £25.3 million.
- MusicMagpie to launch on online marketplace Back Market
- MusicMagpie expands rental service beyond smartphones
Its results meant that MusicMagpie posted and adjusted loss of £0.7 million in the period compared to a pre-tax profit of £4 million in the first half of the previous year.
Chief executive Steve Oliver said: “I am pleased that the business has delivered a strong performance in our strategically important consumer technology division, which now represents two-thirds of our total revenue.”
The business reported good progress in its device rental subscription service which it launched in October 2020, increasing to 24,000 active subscriptions from 7,500 the previous year.
Subscription revenues at the company also rose to £2.3 million from £400,000 in 2021.
“Whilst the successful growth of this offering has a short-term compression on the financial performance of the business relative to a one-off sale, it will deliver higher revenue and EBITDA over the life of the device,” Oliver added.
“It therefore remains our overriding growth strategy for the medium term, and we are delighted to announce HSBC UK and Nat West’s support in the form of a new £30 million three-year revolving credit facility to further support our investment in this area.”
Looking ahead, the company said its adjusted EBITDA remains in line with expectations for the full year.