News round up: HMV, Eurogroup, Lonrho and Co-operative Energy.
HMV Group plc (LON:HMV) has said it may sell its live music division to raise funds, as it battles with another drop in sales.
Like-for-like sales, which strip out the effect of shop closures, were down 11.6% in the 26 weeks to October versus a year ago, the struggling music and electronics retailer reported. Including the cost of store closures, HMV made a pre-tax loss of £45.7m.
The live music division made a profit of £3.4m in the 26 weeks to October, up from £1.5m during the same period last year. HMV is attempting to refocus its business by offering more technology products, such as MP3 players, headphones and tablet computers, as well as live music and event ticketing, writes BBC News.
Eurogroup
Jean Claude Juncker, the head of the Eurogroup, said all 27 European Union finance ministers, including George Osborne, would talk together in the afternoon to approve or reject extending the funds to the IMF as agreed in Brussels by December 19.
The loans would be used by the IMF to support struggling eurozone countries. The finance ministers are also tasked with devising a voting system to govern the European Stability Mechanism (ESM) after the Brussels decision to replace unanimity sparked a revolt. The ministers are under pressure to have a deal ready for approval by EU leaders when they convene on Tuesday, The Telegraph writes.
Lonrho
Lonrho, the FTSE-listed conglomerate lining up to go into a joint venture with Sir Stelios Haji-Ioannou, is advertising flights for its African-based carrier Fly540 that it is not actually operating. The company’s website Fly540africa.com has been offering for sale, or listing as sold out, flights between destinations in Angola that have not been operating for weeks according to sources on the ground.
The problems with the routes come despite Lonrho announcing a “full roll out of services in Angola” to the London Stock Market in July. Earlier this month it was announced that easyJet founder Sir Stelios was to undertake a feasibility study aimed at establishing a low-cost airline in Africa, Fastjet, The Telegraph says.
Co-operative Energy
One of Britain’s smallest energy companies has set out to break the stranglehold of the industry’s Big Six by becoming the first supplier for more than a year to cut bills that have soared to record levels. The move by the tiny, fledgeling Co-operative Energy, made with an accompanying fanfare highlighting its customer-friendly credentials, will turn the spotlight once again on the leading suppliers and their prices, which have made a key contribution to rising inflation.
From February, v, a saving of about £35. The new tariff is cheaper than the £1,293 average standard tariff from the Big Six — British Gas, EDF Energy, Scottish and Southern Energy, ScottishPower, E.ON and RWE npower. The industry giants are thought to be unlikely to follow suit, however, The Times reports.