musicMagpie’s share price dropped by 29% on Wednesday morning as the company released disappointing financial results for 2021.
The online retailer’s revenue decreased 5.1% from £153.3 million to £145.5 million, alongside a profit decline of 1.1% from £44.8 million to £44.3 million.
musicMagpie also reported an EBITDA loss of 12.2%, which saw a decline from £13.9 million to £12.2 million.
However, the company added several key operational highlights during its first year as a listed company.
The group’s rental subscription service, which was launched in October 2020, branched out into new categories including tablets, games consoles, MacBooks and wearables.
musicMagpie also launched its SMARTDrop kiosks at almost 300 Asda stores, which has seen over 8,000 devices traded and have paid out more than £2.3m to consumers’ increasing inbound items.
“This has been a landmark year in the history of musicMagpie, and I am hugely proud of everything that the business has achieved,” said musicMagpie CEO Steve Oliver.
“We have delivered strong operational and strategic progress in our first year as a listed company, and have done so while staying true to our clear environmental and social focus and our long-standing ‘smart for you, smart for the planet’ ethos.”
“We are particularly pleased with the progress being made by our rental subscription service, which provides customers with a more affordable and flexible option than an outright purchase or a pay-monthly contract.”
“We are extremely excited about its future growth prospects, and scaling this area of the business further will be a major point of focus for us in the coming year.”