Strong demand for games helps HMV

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Entertainment retailer HMV is confident that its full-year profits will be at the top end of expectations, helped by strong demand for video games.

The group's shares reversed early gains falling 6% by close of trade.

HMV reported like-for-like sales grew 10.1% in the 16 weeks to 26 April and by 7.3% in the full year.

Market expectations for full-year pre-tax profits are in the range of £46m to £58m, compared with last year's figure of £48.1m.

HMV has clearly benefited from a strong games market," said HMV chief executive Simon Fox.

"However, we continue to outpace this fast-growing market," he added.

HMV also announced that following last July's sale of its Japanese business, it had ended the year "broadly debt-free".

Full year results will be announced on 1 July.