musicMagpie reports 15.9% sales growth

Stockport-based recommerce business, musicMagpie has recorded 15.9% sales growth in technology products in the six months to 31st May 2022.

Despite economic challenges affecting consumer spending, the group has seen continued growth in its mobile device subscription offer. The businesses has also benefited from offering a way to unlock cash by trading in old tech products, while also accessing refurbished mobile phones and other goods at a reduced price compared with new.

Total revenue for musicMagpie in its half-year trading update was £71.3 million. While marginally down on the same period in 2021, the decline in revenue came from the sales of disk media and books which had been boosted by Covid-19 lockdowns last year.

Sales of tech products, the group’s core business that represents two-thirds of revenue, rose by 15.9% to £46 million. musicMagpie also reports that the growth in this sector had been tempered by the expansion of its subscription offer, now with c. 24,000 monthly active subcribers, as revenue from sales was being spread across the 12 month terms of customer contracts.

Looking ahead to the next six months and annual figures, musicMagpie expect a much stronger profit performance in the second half of the year, thanks to continued growth of its subscription offer, and expansion of marketplace sales channels such as Back Market.

Steve Oliver, Chief Executive Officer & Co-Founder of musicMagpie (pictured), said:

“The economic environment facing consumers is increasingly tough and the issues of affordability and cash-flow constraints are being felt by many. 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.”