‘Re-commerce’ business musicMagpie has revealed an increase in revenues.
The North West firm, which listed on the London Stock Exchange earlier this year, said revenues were up 5.4% to £145.2 million for the full year ended 30th November. Adjusted EBITDA was £12.2m.
musicMagpie, originally a marketplace to trade in old CDs and DVDs, now specialises in refurbished consumer technology in the UK and US. Customers can buy, rent or sell smartphones, tablets, consoles and wearables.
It said Black Friday sales were a record for the group and highlighted strong progress on its strategic priorities: a smartphone rental subscription service and SMARTDrop Kiosk roll-out.
The smart phone rental subscription service, which it says provides customers with a more affordable and flexible option than an outright purchase or a pay-monthly contract with a mobile network, launched in October 2020.
The service now has around 13,500 active paying subscribers and could be a key driver for higher recurring revenues and EBITDA over the life of a device as opposed to a one-off sale.
The SMARTDrop kiosk offering, which launched in November 2020, is being successfully rolled out across the Asda network and will be in nearly 300 stores in 2022.
So far, approximately 5,300 smartphones have been traded in through the kiosks, paying out over £1.5m to customers.
“We are pleased to have delivered a good performance in our first year as a listed company, in line with our expectations at the time of the IPO in April,” said CEO Steve Oliver.
“The strong progress being made by our SMARTDrop Kiosks and our corporate recycling programme is enabling our strategic priority to ‘buy more, sell more, rent more’, and we are also especially pleased by the consumer reaction to our phone rental subscription offer which is gaining good momentum.
“As a result, we are confident in our prospects for the new financial year.”