musicMagpie confirmed a total revenue of £71.3 million in HY2 2022, representing a small decline from £72.8 million year-on-year, with its consumer technology products sector revenue up 15.9% to £46 million compared to £39.7 million and its disc media and book sales down 23.6% to £25.3 million against £33.1 million.
The technology upcycling firm highlighted resilient revenue performance despite economic headwinds which impacted the consumer sector, with continued momentum in the company’s rental subscription service.
The company said its sales last year benefited from higher levels of online shopping from consumers over the pandemic lockdown.
musicMagpie highlighted an adjusted EBITDA of £2.6 million for HY1 2022 compared to £6.2 million in the last year.
The group commented that its annual growth in outright consumer technology product sales had been intentionally tempered by the promotion of its contracted monthly subscription service as opposed to outright purchase.
musicMagpie mentioned this area of its business was expected to earn higher revenue and EBITDA over the life of a device, as opposed to a one-off sale, underpinned by contracted recurring revenue and cash flow stream which is set to become more visible in the company’s medium-term performance.
The group stated it had taken a sustainable and disciplined approach to growth in its subscriber base, with active paying subscribers now at 24,000 from 7,500 on 31 May 2021.
musicMagpie commented that the current macroeconomic volatility was impacting its business along with the majority of other companies, however the board said it was confident of achieving its FY 2022 expectations.
The pre-owned technology company said it anticipated a stronger HY2 performance from rising contributions from growing rental subscribers and projected sales growth from the recent expansion of its ‘marketplace’ channels such as Back Market, on which it launched this year.
“The economic environment facing consumers is increasingly tough and the issues of affordability and cash-flow constraints are being felt by many,” said musicMagpie CEO Steve Oliver.
“Against that backdrop, our twin proposition of giving people a way to recycle their tech products for cash, as well as our ability to sell or rent refurbished, lower cost consumer technology products, becomes increasingly attractive.”
“Whilst recognising we are in the early stages of our second half, our sales channel expansion has started well and we are confident about our short term growth and remain excited about our medium-term prospects.”
