Music Magpie said a record Black Friday period has helped “offset a softer H1” as it posted its pre-close trading update to November 30, 2023.
The retailer said full-year revenue is expected to reach £136.6m, down from £143.3m in 2022, which was strengthened by a stronger performance in the second half of the year.
EBITDA is expected to rise by 15.4% to £7.5m, up from £6.5m last year. Music Magpie said the expected rise was a result of the “gross margin increase and ongoing tight cost control, as well as the strong end to the year”.
Active rental subscribers increased by 21% in the year, reaching 37,100 as of November 30, while total rental revenue grew by 57% to £8.3m.
The retailer said that, despite the challenging consumer environment and inflationary pressures, the board is “encouraged” by Music Magpie’s second-half performance and is confident in its strategy and medium-term prospects.
Music Magpie chief executive Steve Oliver said: “We are pleased with the performance of the group in the second half of the year, and are delighted that our focus on profits and cash has delivered significant EBITDA growth.
“Our strategy of proactively managing the number of active rental subscribers has also helped in this regard and will support our short-term objectives on profits and cash into 2024, bolstered by an enhanced buy now, pay later offering.
“I remain confident in the business and our ability to navigate the difficult external market conditions, especially given the outstanding level of trust that consumers continue to have in our brand, as demonstrated by our excellent 4.4* Trustpilot rating based on over 277,000 reviews.”
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