MusicMagpie swings to interim loss

In the six months to the end of May, the company swung to an adjusted pre-tax loss of £0.7m from a profit of £4m in the same period a year earlier, while revenues dipped to £71.3m from £72.8m. The group said growth in the consumer technology division largely offset the expected post-pandemic reduction in the disc media and book unit.

Consumer technology revenue, which makes up about 65% of group revenues, rose 15.9% to £46m. Meanwhile, disc media and books revenue declined 23.6% to £25.3m, with the prior year having benefitted from lockdowns.

MusicMagpie hailed "strong" progress from its device rental subscription service, which saw active subscriptions rise to 24,000 from 7,500 a year earlier.

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.

"Notwithstanding the challenges presented by the current macroeconomic uncertainty, we expect consumers will continue to seek ways to raise cash and save money and as a result, we are confident that the business is well positioned for future growth in H2 2022 and beyond."

At 0950 BST, the shares were down 9% at 45.50p.