<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’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’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 £7.7m in cash. This is the latest of the group’s new strategic initiatives and aims to drive the growth of digital content through the HMV and Waterstone’s online stores. This is a solid start to the year by HMV, against tough comparatives in the core business.