Music Magpie full year trading in line with expectations
Music Magpie, the recommerce business specialising in refurbished consumer technology, has said its trading performance for the year to 30 November has been in line with expectations.
In pre-close trading update, the retailer said revenue and adjusted EBITDA came in at £145.2 million and £12.2 million respectively.
The company said it enjoyed a record Black Friday which helped UK revenue in its core consumer technology business to rise by 5.4% on the prior year. As predicted in the retailer’s interim results in July, revenues from disc media and books reverted to pre-pandemic levels in the second half of the year.
Music Magpie said its recently launched smart phone rental subscription service has made strong progress since its launch in October 2020. At 30 November 2021, the service had around 13,500 active paying subscribers, including a first cohort of subscription renewals.
Meanwhile its SMARTDrop kiosk offering, which launched in November 2020, is now being rolled out across Asda and will be in nearly 300 stores in 2022. So far, approximately 5,300 smartphones have been traded in through the kiosks which have paid out over £1.5 million to customers.
Steve Oliver (pictured), chief executive of Music Magpie, said: “We are pleased to have delivered a good performance in our first year as a listed company, in line with our expectations at the time of the IPO in April. The strong progress being made by our SMARTDrop Kiosks and our corporate recycling programme is enabling our strategic priority to “buy more, sell more, rent more”, and we are also especially pleased by the consumer reaction to our phone rental subscription offer which is gaining good momentum. As a result, we are confident in our prospects for the new financial year.”
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