Music Magpie revenue declines in increasingly competitive second-hand market
Music Magpie has reported a drop in revenue for the six months to 31 May as it faces an increasingly competitive second-hand market.
Group revenue came in at £53.8 million compared to £61.9 million in the corresponding period last year, which Music Magpie attributed to the planned conversion of its US business into a sourcing-only operation.
While UK consumer technology sales rose marginally from £28.6 million to £28.7 million, sales of the products in the US reduced to £1.6 million from a previous £8.5 million.
There was also a small drop in rental revenue and a 5.7% fall in disc media and books sales to £19.7 million, although this was a significant reduction on the decline seen in previous years.
Steve Oliver, chief executive officer of Music Magpie, said: “Amidst an increasingly competitive environment for second-use technology, and with consumers continuing to feel the squeeze on their wallets, the market has undoubtedly been challenging.
“However, our turnover remained robust in the UK, where consumer technology sales held firm, and Disc Media and Books showed welcome signs of stabilisation.”
Although its current trading conditions remain challenging, Music Magpie said it is now looking forward to its Black Friday trading period when historically the majority of its full year profits are earned.
Oliver added: “Combined with our efforts to refine and improve the way in which we buy, sell, and rent, our business is now in a stronger position and better able to capitalise on the continued growth of second-use markets.
“We have recently launched the buying of branded fashion items on the Music Magpie platform and intend to continue broadening our offering and further unlock the ‘world of inventory’ that sits in consumers’ households.”
