British music and bookseller HMV delivered a big jump in annual profits today as current sales at its bookstores received a boost from the new "Harry Potter" book.
Pre-tax profits for the year ended April 26th jumped to £96.5 million sterling, up from £80 million last year. A total dividend of 4.5 pence a share will be paid.
The company also showed an improvement in current sales after warning in April of a deterioration in its fourth quarter.
Like-for-like sales at its Waterstone's book stores leapt 7.2 per cent in the first eight weeks of the new year thanks to the new Harry Potter book, the biggest book launch in history.
Sales at HMV shops in Britain and Ireland were up 1.6 per cent at the start of this year after stripping out new selling space. They were in decline at the back end of last year.
Music accounts for about half HMV's sales and it is the market leader, but, according to the British Phonographic Industry (BPI), music sales fell 13 per cent in the first quarter.
The fall came despite hits from the likes of Justin Timberlake and Norah Jones. Shares in the group closed at 133-3/4p yesterday, after having floated in May 2002 at 192p.