musicMagpie’s profits have risen 15.4%, despite a dip in revenue.
The Stockport-based refurbished tech company explained that it had had a “softer” first half to the year, meaning its full year revenue fell from £143.3m in 2022 to an expected £136.6m.
There was an improvement in the second half of the year (up 7.7%) year on year, mainly due to a “record Black Friday period”.
musicMagpie CEO Steve Oliver said that it had focused on “margin expansion as opposed to revenue growth” and that’s why EBITDA was up 15.4% to £7.5m.
“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,” explained Oliver, Chief Executive Officer & Co-Founder.
“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.”
At the end of last month, the owners of musicMagpie confirmed that they were in early stages of exploring a sale to Aurelius Group, however, the deal broke down a few days later.
