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ANALYST VIEWS: WHAT DID YOU MAKE OF YESTERDAY'S TRADING UPDATE FROM HMV?

<strong>DAVID JEARY </strong> INVESTEC<br />The acquisition of a 50 per cent stake in 7digital looks a good complementary strategic acquisition to increase the group&rsquo;s digital profile and footprint. Trading in the core HMV UK division was slightly ahead of our expectations, offsetting a weaker than forecast international part.<br /><br /><strong>TONY SHIRET </strong> CREDIT SUISSE<br />The debate is whether after a period of cost containment and space re-allocation to alternative products such as games in HMV and stationery in Waterstone&rsquo;s, it can stimulate longer term growth. The announcement on 7digital currently lacks visibility in terms of meaningful profit.<br /><br /><strong>MATTHEW MCEACHRAN </strong> SINGER CAPITAL<br />HMV has acquired a 50 per cent equity stake in 7digital for &pound;7.7m in cash. This is the latest of the group&rsquo;s new strategic initiatives and aims to drive the growth of digital content through the HMV and Waterstone&rsquo;s online stores. This is a solid start to the year by HMV, against tough comparatives in the core business.