Musicmagpie FY gross profits decline, warns of 'challenging' outlook
Online retailer Musicmagpie said on Wednesday that full-year gross profits had fallen and warned that the new financial year had been impacted by both postal strikes and ongoing macroeconomic uncertainty.
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Musicmagpie stated gross profits had fallen 14% to £38.1m and revenues were broadly flat at £145.3m. However, pre-tax losses were slightly narrowed from £16.3m to £14.8m.
Active subscribers to Musicmagpie's device rental service rose by 13,500 to 30,500 at the year-end, and consumer technology revenues grew 12.2% to £96.6m. Gross margins, on the other hand, fell to 26.3% from 30.4%.
Looking forward, Musicmagpie highlighted that whilst the economic outlook remained "unpredictable", the board remains "confident" in its strategy and its medium-term growth prospects.
Chief executive Steve Oliver said: "While the short-term outlook continues to be challenging, we believe our ability to help consumers raise cash and save money positions us well for resilient trading."
As of 1110 GMT, Musicmagpie shares were down 9.87% at 33.80p.
Reporting by Iain Gilbert at Sharecast.com