As CDs and DVDs become a quaint relic of the past, and Amazon and eBay make leaving the house for electronic items seem more of a fool’s errand than ever before, JB Hi-Fi have announced they have raised first-half net profits by 16%, to $110.4 million.
In addition, total sales revenue from June 31 – December 31 rose 23.6% to $2.6 billion – up from $2.1 billion in the same period during 2015
“We are pleased to have delivered record sales and earnings results for the half,” Group Chief Executive Richard Murray said, although he acknowledged the acquisition of The Good Guys in November was a factor for the increased profits – at least over December. It bears no impact on the 16% net profit gain, however, which suggests physical media must play a sizable role in their profits.
“As we move into 2017, we are taking a deliberate and considered approach to how we integrate and leverage the scale of the group.
“We confirm our synergy assumptions of $15 to $20 million per year after a three-year integration period and remain highly confident in our ability to realise these benefits.”
Robotic corporate-speak aside (Get a load of that final sentence, above. “Synergy assumptions”!?!), it would appear that JB Hi-Fi have managed to overcome the relative death of both the DVD and CD industry and still thrive.
In this day and age, that’s an impressive feat for a brick and mortar company.
