video transcript

The struggling British music, books and games retailer HMV has issued its third profit warning in three months. Competition from online retailers and supermarkets have hit sales at the 90-year-old company hard. Three months ago it announced plans to close 40 HMV stores and 20 of its Waterstones book shops. It now says it needs to reduce costs by a further 10 million pounds a year. The group expects an annual profit before tax of around 30 million pounds - that's 48 million dollars - and much lower than forecast. The chain also faces supplier troubles as firms struggle to gain credit insurance due to fears over HMV's trading. But the retailer insists its bank lenders are being supportive. They've agreed to give the Group an extra three months to meet lending rules. Before the recent closures HMV had 700 stores in seven countries. It's now trying to broaden its product mix by including technology and entertainment items. In morning trade HMV shares were down 1.5 percent Amy Gardner, Reuters.