The video rental and retail group said that since the beginning of the year, like-for-like sales on games and DVDs increased by 18.5 per cent. Like-for-like sales of mobile phones rose 53.8 per cent.
During the period, 16 stores were added, bringing the total to 229. However, because of unfavourable weather, together with widespread piracy, the retailer's higher-margin like-for-like rental revenues slumped 9.7 per cent.
Home Entertainment chairman Iain Muspratt said: 'It is quite clear that consumers are exercising greater caution than in previous years, the impact of which is difficult to forecast. We are making market share gains in all areas and remain profitable and financially robust.'
Seymour Pierce cut its forecast for the retailer's end-of-year pre-tax profit from£5.9 million to£4.3 million. The retailer's preliminary figures will be announced on August 30.