MusicMagpie FY revenues and adjusted EBITDA seen in line with expectations

Online retailer MusicMagpie said on Wednesday that both full-year revenues and adjusted underlying earnings for the twelve months ended 30 November were in line with internal expectations at £145.2m and £12.2m, respectively.

MusicMagpie said revenues in its core consumer technology business in the UK were up 5.4% on the year, partly driven by a record Black Friday performance. Revenues from its disc media unit, which makes up 35% of total group revenue, and the firm's books division, which accounts for 6%, reverted to pre-pandemic levels in the second half of the year.

The AIM-listed group also stated its smartphone rental subscription service had made "strong progress" since its launch in October 2020, with the service now having roughly 13,500 active paying subscribers, making "a positive contribution" to margins and creating the potential to earn higher recurring revenues and underlying earnings over the life of a device.

MusicMagpie added that its SMARTDrop kiosk offering, which launched in November 2020, was also being successfully rolled out across the Asda network and will be in nearly 300 stores in 2022, with approximately 5,300 smartphones traded in through the kiosks so far.

Chief executive Steve Oliver said: "We are pleased to have delivered a good performance in our first year as a listed company, in line with our expectations at the time of the IPO in April.

"As a result, we are confident in our prospects for the new financial year."

As of 0940 GMT, MusicMagpie shares were up 2.74% at 169.0p.