MUMBAI: HMV Group Plc, UK's largest CD retailer, posted a narrowed first-half loss as trading at the company's music stores offset a decline in sales at its Waterstone's bookshops.

The net loss in the 26 weeks ended October 24 was 17.8 million pounds ($29 million) compared with a loss of 19.8 million pounds, a year earlier. Sales rose 5.6 percent to 797 million pounds. Revenue at Waterstone's fell 4.3 percent.

It has converted 32 stores of former rival Zavvi, while Borders, competitor to HMV's books chain Waterstone's, recently went into administration.

"The exit of competitors from the UK entertainment market at the beginning of 2009 has created opportunities to capture sales in markets where these stores formerly overlapped with HMV," the company said.

HMV is also branching out into live music and movies to compensate for a decline in recorded music and book sales. The company bought an 8.2 percent stake in promoter Mama Group Plc yesterday, with whom it owns venues including London's Hammersmith Apollo.

The retailer is also seeking to broaden its online music offering after it bought a 50 percent stake in 7digital.com in September to accelerate its growth in the market for digital downloading.