musicMagpie praised its “resilient revenue performance” in the first half of its fiscal year despite “well-publicized economic headwinds affecting the consumer sector”.
The Stockport-headquartered company recorded revenue of £71.3m for the six months to May 31, 2022, down from the £72.8m it had made during the same period in 2021.
Sales of its consumer technology products division rose 15% to £46m, while sales of disc media and books fell 23.6% to £25.3m.
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musicMagpie added that its adjusted EBITDA for the six months was £2.6m, down from £6.2m.
A statement said: “While acknowledging the current uncertain economic environment facing all consumer businesses, the Board of Directors is confident that it will meet its full year expectations with a much stronger second half earnings performance. stronger thanks to an increased contribution from growing rental subscribers alongside the expected continued growth in sales revenue from the recent development of marketplace sales channels, including Back Market, on which the group recently successfully launched .”
Managing Director and Co-Founder Steve Oliver added: “The economic environment facing consumers is increasingly challenging and issues of affordability and cash flow constraints are felt by many.
“Against this backdrop, our dual proposition of giving people a way to recycle their technology products for cash, as well as our ability to sell or rent refurbished consumer technology products at a lower cost, become increasingly more attractive.
“While acknowledging that we are in the early stages of our second half, our sales channel expansion has started well and we are confident about our near-term growth and remain excited about our medium-term outlook.”