musicMagpie shares soar 17% as black Friday boosts second half

Shares in used gadget seller musicMagpie (LSE: MMAG) jumped 17% on Thursday after the company said bumper Black Friday sales helped lift profits despite a fall in revenue.

The online retailer expects a 4.7% drop in total revenue to £136.6m for the year to November 30. But a focus on profitability amid challenging conditions allowed musicMagpie to forecast a 15% rise in earnings before interest, tax, depreciation and amortisation (EBITDA) to £7.5m.

A 57% jump in rental revenue and 21% growth in rental subscribers also boosted results in difficult times.

Chief Executive Steve Oliver said musicMagpie’s “focus on profits and cash has delivered significant EBITDA growth” as it manages subscriber numbers to aid short-term profit goals.

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He expressed confidence musicMagpie can navigate external challenges thanks to “outstanding” consumer trust. The fast-growing ‘buy now pay later’ business should provide an extra prop next year.

Shares closed up 17% at 13.50p after the upbeat update. The stock has plunged 44% in 2023 despite Thursday’s surge.