HMV Share Discussion Threads

[loganair] 10/1/2013 13:24

The banks will get the Christmas trading figures long before the small share holder - IMO they already know them.

[graham2405] 10/1/2013 13:24

An interesting story, which also highlights one of my issues with LfL sales.

"It also highlights the difficulty of relying on a measurement such as like-for-like sales, which gives little clue about the profitability of a business during a given period."

Easy as pie to pump like for like by holding a big discount sale, increasing turnover at the cost of reducing profit margin.

[graham2405] 10/1/2013 13:11

"Good figures add up quicker than bad, thats probable why they are delayed."

PMSL....... ;-)

[montyhedge] 10/1/2013 12:57

Good figures add up quicker than bad, thats probable why they are delayed.

[lukeisbackontrack] 10/1/2013 12:56

many thanks, yep i couldn't find it on their investors page

[graham2405] 10/1/2013 12:41

Last year, Xmas figures were released on the 9th of January (yesterday).

I assume that Covenants 'expire' at the end of January. They are in discussions with the banks on this matter.

So, when can you expect results?

Clearly the most important thing are the figures, until the figures are known the banks are hardly likely to 'do a deal'.

I suspect that the next update will be either:

Excellent Xmas LfL figures and a new bank deal, in short another year.

or

Xmas figures as expected and LfL down circa 10%, and the banks give them some time to find a buyer.

So, in short, expect news any day before the end of January. HMV doesn't make a habit of putting these dates on its Corporate Calender, why, you'll have to ask them.

Best of luck if you hold.

All IMHO

[montyhedge] 10/1/2013 12:28

How can they ever go up with Henderson selling they have 10% and seem be reducing their holdings.

[lukeisbackontrack] 10/1/2013 12:25

can someone tell me when we expecting results? Possibly Christmas sales were boosted

[montyhedge] 10/1/2013 11:30

I hope they survive, I wonder if they have this CD

[graham2405] 10/1/2013 11:24

Dead Man Walking.............Sums it up.

The minimun HMV need is a whole lot of new investment, much lower debts. and a lot of surplus stores closed.

AND, no one will inject cash to the benefit of current equity holders, and why should they.

The equity is therefore toast.......feel free to argue the case for.

The real question is, can HMV survive with new owners, and even that is questionable.

Take a look at Jessops, it's a very similiar situation, it was failing, sales were falling and the share price was reduced to pennies.

In their case the banks took part in a huge debt for equity swap they took a loss on the outstanding loans. Shareholders got 0.1p per share, they had no option.

So it started again with new owners (the banks and the staff pension fund), and with a few of HMVs current managers (you know the names) they attempted to recover, alas it soon failed again, will another punter have another go?

In short, structural decline in its target market killed it off.

Lets not forget HMV and Jessops real problem is not the recession, it was a factor, but the real issue was a decline in the market for the goods they sell (a structural decline).

For Jessops, everyone now has phones with cameras and prior to this digital cameras had already destroyed film cameras.

For HMV it is the decline in CD and DVD sales that have done the damage, the invention and mass take up of digital media, exacerbated by very strong competiton from the likes of Amazon and others.

Even if someone saves HMV, how long will the saved company last. One things for sure, after Jessops the banks and suppliers will think long and hard about jumping into HMV.

All IMHO

[loganair] 10/1/2013 11:02

This share is sounding more and more like the Titanic, the orchestra still plays on while the water is already lapping over the bow of the ship.

Shall I open a book when we think HMV will reach the 1p mile stone? or to put it another way the last remaining life boat still left to go.

[montyhedge] 10/1/2013 10:58

Never go up with Henderson's p-ssing on the price.

[nolens volens] 10/1/2013 10:27

Best stick to the cut and paste then to mask your illiteracy.

[graham2405] 10/1/2013 10:20

Yes folks, the promotional drivel is back......and it continues....

Games makers will continue to sell discs apparently....?

[graham2405] 10/1/2013 10:18

"I've suggested nothing Graham - it's all in your troubled mind."

Olive iii, Nolens advfn, Elvis lse

Would you like me to quote literally 'dozens' of articles posted by your good self and your aliases to the effect that the closure of Woolworths, Zavvi, Game, Comet, Play and the CI VAT lark, and believe it or not, the Olympics, would all benefit HMV.

When in truth HMV is worse off now than it was 3 years ago.

It has more debt and it has sold numerous assets, Waterstones, most of HMV Live and a number of other assets. It has also suffered significant dilution to its stake in 7Digital.

Olive, Nolens, Elvis, certified provider of bovine scat to all that will listen.

[loganair] 10/1/2013 10:16

graham2405 - I agree that is why I say that HMV share holder value is 0 (Zero) and if HMV do survive it will not be on the FTSE owned by its current share holders.

To me that report sounded like the Titanic is sinking and an Officer says there are still some life boats on the other side - however at least for the current share holders the Titanic is still going to go down.

And you forgot to put that debt rose after also selling Waterstones for a little over £50mln + the sale of most of HMV Live.

And that HMV in their last financial report have already booked much of the £40mln given to them by the entertainment industry, stripping that out their loss was actually greater than the loss posted for 2011.

And ONLY a 6% rise in game sales is absolutly dreadful considering over 200 Game shops closed.

[graham2405] 10/1/2013 10:09

"True, HMV's debts rose to £220m in 2012 but ten per cent of this was acquired last month US private equity firm Apollo Global Management, removing strict bank deadlines."

Loganair

And that debt rose after selling the HMV Apollo for £30+ million.

Also, the purchase of debt the hack takes as a positive, 'removing strict bank deadlines'. Utter tosh, no deadlines were removed, the debt was just sold to a new owner!

The hedge fund are much less likely to be leniant than the banks would have been. If HMV break the terms (covenants) of the Allied Irish, now Apollo loans, Apollo could create havoc for HMV.

He makes it look like Apollo are supportive?

They are a private equity fund, aka 'vulture fund', they are not charities.

[loganair] 10/1/2013 09:59

HMV Canada seems to be doing better than HMV in the UK, I wonder why HMV Group sold HMV Canada for next to nothing???? So what are HMV Canada doing right that HMV here in the UK are not.....

Music and movie retailer HMV Canada says it reached $65.4 million in sales over the holiday period, bringing 2012 total sales to more than $270 million.

The company on Tuesday said it was able to surpass its $63.5 million holiday revenue target due to consumers who still want to purchase compact discs and DVDs as gifts. It adds many of the sales were also from collectible items like T-shirts, headphones and impulse buys offered in their stores.

Same store sales - a key metric in the retail industry - were up 1.4 per cent over the 2011 holiday shopping season.

Nick Williams, president and CEO of HMV Canada, said for the past few months the chain has worked on rebranding itself as a destination for entertainment products rather than just a music store, which was the focus when it first opened in Canada more than two decades ago.

Over this past year, DVDs have accounted for about half of store sales, CDs about a third, with the rest attributed to collectibles like specialty items. A decade ago, music made up 90 per cent of the chain's yearly revenue.

As major retailers like Wal-Mart Inc. and others begin putting music and DVD products on their shelves, Williams says it's critical for HMV Canada to differentiate itself from the pack.

"There's definitely work for us to do to really embrace the fact that we are a specialist," he said. "That is a different point from standard retailers just pushing something out."

The retailer says it saw a growth of 49 per cent in its gifts and collectibles category, with T-shirt sales increasing by 29 per cent and seasonal merchandise sales increasing by 33 per cent.

Williams says consumers are still choosing to fork out cash on special edition CDs, DVDs and items that come pre-packaged with collectibles.

A bestseller for the chain in the last year was the latest instalment of the Batman movie trilogy, "The Dark Knight Rises," that came with a cookie jar.

Other items that were popular included music releases from One Direction, Bruno Mars and Rihanna, while Star Wars, Dr. Who and The Beatles-themed Christmas lights also boosted sales during the holiday period.

Williams says the company is working on finding more ways to offer items that can be given as gifts all year round.

Last December, it launched an online music streaming subscription service called The Vault to compete with other digital services including Rdio, Slacker Radio, Rara and Deezer.

HMV Canada operates 113 stores across the country.

[loganair] 10/1/2013 09:55

And now on a more positive note for HMV - HMV may very well survive, but not as a listed company on the FTSE which will mean a share holder value of 0 (Zero):

We are barely a week into the New Year and once again there is much talk about HMV's financial troubles.

The firm recently warned that it may breach lending agreements this month, and has been in constant talks with suppliers, banks and lenders over Christmas.

And in what is becoming an annual tradition, MCV suggests that the retailer still has some strengths worth remembering.

Let's start with some number crunching.

HMV posted a £36.1m loss for the 26 weeks ending October 27th, 2012. That is unwelcome news for any retailer, but this is not as severe as the £50m loss HMV posted in 2011.

These numbers don't include the firm's Christmas takings, which are due to be announced later this month and may show that HMV is slowing its decline.

True, HMV's debts rose to £220m in 2012 but ten per cent of this was acquired last month US private equity firm Apollo Global Management, removing strict bank deadlines.

Reports suggest the chain also received £40m from music and film firms keen to maintain a crucial channel for physical product. Understandable, given that discs still account for the majority of sales in films, as well as 62 per cent of music.

REACHING OUT

This boost from suppliers shows how their relationship with HMV has improved.

The retailer turned to music, film and later games firms for support in early 2012. Music and film firms rallied behind HMV, reportedly allowing greater access to back catalogues and the option to buy stock on consignment: concessions that have made life a little easier for the specialist.

Games firms have aided HMV with more activity at its Oxford Street branch, such as official launches for Black Ops II and Wii U.

Head of technology and games Ewan Pinder told MCV: "It's amazing how things can change. Our relationship with key partners has become much stronger and more positive over the course of the year."

The collapse of major rival GAME last year was also a blessing, helping HMV's market share in the games space rise by six per cent. Again, the Oxford Street branch benefitted greatly from the absence of GAME.

PART OF THE PLAN

There's no denying HMV is in a dangerous position.

Reports suggest the Royal Bank of Scotland, one of six banks supporting the retailer, is sounding out administrators in case HMV's Christmas takings fall below expectations.

And conflict is arising around HMV's remaining debt: lenders are reportedly planning to sell their loans to prevent Apollo from taking over the company and selling off its assets.

But it's important to remember that HMV's plight is part of overall decline seen on the High Street and in entertainment.

The retailer has previously explained that its has a long-term plan to return to profitability. It has had another bump in a long and arduous road, but HMV remains resilient in its determination.

Said Pinder: "Any transition takes time, not least in entertainment which is undergoing huge change in the way that it's distributed and consumed. But we have a strong brand and we have faith in our future prospects."

[totally banjo] 10/1/2013 09:45

IDC predicts game disc revenue will "rise substantively" in 2014
by Ben Parfitt
29 minutes ago




The next-generation of consoles will be a huge commercial success according to a new report from the International Data Corporation.

A new report entitled Worldwide Video Game and Entertainment Console Hardware and Packaged Software 2012-2016 Forecast reckons that the new offerings from Nintendo, Sony and Microsoft will stand largely unchallenged through the next cycle.

"Discs will remain the console game revenue mainstay for years to come," IDC gaming research manager Lewis Ward.

"2011 and 2012 were tough for many console game disc developers and publishers. With the advent of eighth-generation consoles, starting with the Wii U, historical norms strongly imply that game disc revenue will stop bleeding in 2013 and rise substantively in 2014."

The report also predicted total unit sales of 50m for Nintendo's Wii U by 2016, with further success for the new machines from Sony and Microsoft.

"It doesn't appear that alternative platforms – set-top boxes from cable companies, web-connected smart TVs, and so on – are positioned to materially disrupt the trajectory of the 'big 3' console OEMs in 2013 or 2014," it added.

[nolens volens] 10/1/2013 08:19

I've suggested nothing Graham - it's all in your troubled mind. I only come on these bbs to have a laugh at the general calibre of the posters and to see which retailer folk are suggesting will "surcome" this week.

[graham2405] 10/1/2013 07:35

Nolens, Olive, Elvis...........

Every time a store fails, Nolens suggests that it may be beneficial for HMV, and yet......

Woolworths failed, and HMV makes a loss

Zavvi failed, and HMV makes a loss

Game fails, and HMV makes a loss

Comet fails, and HMV makes a loss

Play closes down, and HMV makes a loss?

Spot a pattern............?