Musica sees further store closures

Clicks Group has reported that its music and entertainment retailer, Musica‘s interim revenue declined amid continued store closures.

In reporting its results for the six month period ended February 2014, Clicks said that Musica closed an additional three stores, although it opened one new store, taking its overall footprint to 118 stores as at February 2014.

This is down from 120 stores at the end of August 2013, and down from 134 in 2012.

Brick-and-mortar music outlets have been facing increasing competition from digital outlets like iTunes, and online streaming services.

Musica’s turnover for the interim period also declined, albeit marginally (1.4%), to R495 million, from R502 million in the same period in 2013.

For the year ended August 2013, Musica reported a decline in turnover to R862 million, from R872 million in 2012.

In commentary for the most recent reporting period, Clicks said of its music retailer: “Musica continued to gain share in all product categories in a declining market.”

Clicks performance
Clicks performance

Total group turnover however, increased by 9.6% to R9.3 billion, with Clicks’ revenue up to R6.06 billion.

Operating profit was up 7.3% to R571 million.

Diluted headline earnings per share increased by 10.3% to 157.4 cents, while the group declared an interim dividend of 53.5 cents per share, an increase of 10.3% over the prior
period.

Looking ahead, Clicks said it expects an 8 – 12% growth in diluted headline earnings per share for the full-year period in 2014. The group also has a capex of R347 million for the full-year period.

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Musica sees further store closures