musicMagpie reveals growth in consumer technology sales and device rental subscription in annual results

Stockport-headquartered circular economy pioneers, musicMagpie, have announced its audited full year results for the year ended 30 November 2022 (“FY22”).

Despite challenging economic conditions, including the coronavirus pandemic and increasingly cautious consumer spending, musicMagpie has recorded strong growth in its key consumer technology business, with revenue up 12% year-on-year. Revenue from consumer tech products rose to £96.6 million in FY22, and now accounts for 66% of total group revenue.

The business’ device rental subscription offer has also seen active subscribers more than double to 30,500 at the end of FY22, up from 13,500 at the end of the previous financial year. As of February 2023, the service had grown further to 36,000 active subscriptions and a 24-month contract option has also launched.

The year also saw the launch a a corporate device rental offer in October 2022, with transport group Stagecoach as its first customers. Rollout of SMARTDrop kiosks in 290 ASDA stores across the UK also completed with 2023 to see additional kiosks brought to other high-traffic locations. musicMagpie ended FY22 with record sales during Black Friday promotions at the end of November.

Commenting on the results, Steve Oliver, Chief Executive Officer & Co-Founder of musicMagpie, said:

“In common with many consumer-facing businesses, this has been a tough year for musicMagpie in the face of a rapidly changing macroeconomic environment. However, against this backdrop I am delighted with the performance of our core Consumer Technology business, which grew by over 12% and now accounts for nearly 70% of our total revenue. We achieved a huge amount in the year, from completing the roll-out of our SMARTDrop kiosks with Asda, significantly growing our consumer rental subscriber base, to adding our products to both Back Market and Walmart and launching our consumer tech rental service for corporates.

“Our rental subscription service for phones, tablets and other products has continued to grow strongly as both consumers and businesses alike have started to recognise the outstanding value and flexibility that it offers. As of 28 February, we had 36,000 active renters on our books, and recently launched a 24-month rental contact which we believe will be even more attractive to customers in the current economic climate.

“While the short-term outlook continues to be challenging, we believe our ability to help consumers raise cash and save money positions us well for resilient trading. In the longer term, we remain very confident in musicMagpie’s future prospects – and especially those of our rental business.”