Irish entertainment retailer Xtra-vision narrowed its pre-tax losses in its last financial year as it looks to digital for growth.
The retailer cut pre-tax losses from €3.5m to €482,000 in its year to January 29. EBITDA was €2.1m over the period against a €0.2m loss the year beforehand.
However, like-for-like sales dropped 8% and total revenue plunged 19% to €93.7m as the retailer shuttered 19 stores, bringing its total to 165.
Xtra-vision is to launch a digital delivery service, similar to Lovefilm, during 2012. The move follows its launch of a movies by mail service in 2011 and will “maximise our customer proposition with a multichannel solution”, according to the retailer.
The High Court appointed an examiner to Xtra-vision last May after credit insurance was withdrawn by a number of its insurers.
The examinership, which granted the video chain protection from creditors, ended in July after it significantly reduced its cost base through the closing of loss-making stores and obtaining rent reductions. It also made some head office and field staff redundant.
The retailer has had a torrid few years. It said: “Retail sales in the Republic of Ireland declined by 33% from the peak in October 2007 to January 2012. The decline in the company’s revenue over that period has been broadly similar.”
Xtra-vision is to focus on increasing market share in the year ahead and it is also adding complimentary products in-store.