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HMV Group plc Trading Update Conference Call - Final.

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Original Source: FD (FAIR DISCLOSURE) WIRE

OPERATOR: Thank you for standing by. Welcome to the HMV trading update analyst conference call. (OPERATOR INSTRUCTIONS). I must advise you this conference is being recorded today, Thursday, May 3, 2007.

I will now like to hand the conference over to your first speaker today, Mr. Allen (sic) Fox. Please go ahead, sir.

SIMON FOX, GROUP CHIEF EXECUTIVE, HMV GROUP: Good morning everyone. I'm actually Simon Fox, and I'm joined by Neil Bright. Welcome to the HMV Group [pre-closed] conference call. As we updated you on trading just seven weeks ago with the strategic and operational review, there's little new news to report today. As you will have seen in our statement, full-year profits for the group are expected to be in line with current market estimates.

Conditions remain difficult in the seven weeks since our last trading update, particularly in the UK, where the music and DVD markets have been running down on the nine-week period previously reported, whilst the [high street foot] market has also remained tough. However, it's important to keep this in proportion. These are just seven weeks including several hot weather weekends.

We remain confident that the medium-term estimates for our markets as laid out on March 13 remain absolutely valid. Conversely, the performance in our overseas businesses improved in the last seven weeks.

Putting a difficult financial year behind us, we're making very good progress on the strategic plans to turn the business around. These are at an early stage. However, I am pleased to report there's great momentum in our business to drive these initiatives forward.

Neil and I are now happy to take any questions you may have.

OPERATOR: (OPERATOR INSTRUCTIONS). Steve Davies, Numis.

STEVE DAVIES, ANALYST, NUMIS: I'm just wondering if you can strip out (inaudible) boost in the PS3 on those recent HMV UK like-for-likes. And also, how much benefit did you get from the rapid growth in HMV online sales?

SIMON FOX: Certainly, we have enjoyed good growth in games. We have grown at between 30 and 40% like-for-like since the launch of PS3. Gains is for the year representing about 12% of our total mix and a little more than that in the last quarter....