HMV experiences a fall in its pre-tax loss as many of its competitors have collapsed during the economic crisis.

Entertainment retailer HMV has posted its half-year results, showing a marked rise in sales and shrink in losses.

The retailer’s pre-tax loss fell to £24.9 million in the 26 weeks to 24 October, less than the £27.5m loss HMV made in the same period a year ago.

The company, which also owns Waterstone’s bookstores, has likely seen an improvement in its results due to the closure of some of its competitors.

It bought 32 former Zavvi stores after the firm went into administration, and sales have also been boosted by the recent collapse of Borders.

In its results published today (11 December), the company said: “The exit of competitors from the UK entertainment market at the beginning of 2009 has created opportunities to capture sales in markets where these stores formerly overlapped with HMV.”

Total sales over the half-year rose by 5.6% to £797m up from the £754.5m the year earlier. Like-for-like sales were down 2.1%.

HMV also purchased 50% of online music store 7digital in September this year. 7digital will become HMV’s supplier for all digital operations, including providing e-books for Waterstone’s.

Waterstone’s total sales fell by 4.3% during the half-year and the bookstore’s like-for-like sales were down 5.1%.

Commenting, HMV Chief Executive Simon Fox, said: “With a good line-up of products across all categories, our stores and websites are very well prepared for Christmas and we are confident that customers will receive great service and availability however they choose to shop.”