UK's Gear4music H1 revenue rises 6%, gross margin slips
UK's Gear4music H1 revenue rises 6%, gross margin slips
Overview
UK online music retailer's H1 revenue rose 6% yr/yr, driven by UK and international growth
Gross profit and EBITDA increased, while gross margin slipped to 27.6% from 28.0%
Company says lower EBITDA reflects setup costs for new automated UK warehouse
Outlook
Gear4music expects FY27 results to be in line with consensus market expectations
Consensus for FY27 is revenue of £200.2 mln, EBITDA of £16.0 mln, PBT of £6.0 mln
Company says it is well prepared for the upcoming peak trading period
Result Drivers
INTERNATIONAL GROWTH - Co said European and Rest of World revenues rose 11% yr/yr, supporting overall revenue increase
SETUP COSTS - Co said lower EBITDA reflects previously reported setup costs for new automated UK warehouse
DISCRETIONARY SPENDING ENVIRONMENT - Co said performance reflects strength of customer proposition in challenging environment for discretionary consumer spending
Company press release: ID:nRST5818Za
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
H1 Gross Margin |
| 27.60% |
|
H1 EBITDA |
| GBP 5.70 mln |
|
H1 Gross Profit |
| GBP 23.60 mln |
|
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)