JB Hi-Fi wins from Dick Smith collapse: nears $4bn revenue

JB Hi-Fi has benefited from the collapse of Dick Smith with an 11 percent boost to its hardware and services businesses in the 2016 financial year.

Overall revenue was up from $3.65 billion in financial year 2015 to reach $3.95 billion, an increase of $300 million, or 8.3 percent.

Chief executive Richard Murray said the closure of Dick Smith stores in April helped out sales for JB Hi-Fi's computer, visual, audio and accessories business.

"We anticipate this will continue to drive sales growth in the first half of financial year 2017; however the impact will moderate as we cycle through their decline and eventual market exit," he said.

Murray said in February it was unclear what impact Dick Smith would have on the electronics retail industry, but there would likely be some "very small" property opportunities. Not long after Dick Smith closed its airport stores, JB Hi-Fi took over the four locations in Sydney International Airport.

In financial year 2016, JB Hi-Fi opened nine new stores and closed two, bringing the total to 194.

The retailer's hardware and services business now accounts for 85.9 percent of JB Hi-Fi's revenue, while software continues to slide, dropping by 5.4 percent.

Murray remained tight-lipped on its managed services business JB Hi-Fi Solutions, except for saying it grew by "double digits" in financial year 2016. JB Hi-Fi solutions provides business solutions for corporate and government clients, with a strong focus on education with managed services and BYOD programs.

According to JB Hi-Fi, the solutions business provides technicians to over 300 schools in the Victorian Department of Education.

The company briefly touched on speculation it would acquire retailer The Good Guys. JB Hi-Fi said it was still part of the sales process, but has not made a decision on an acquisition yet, as The Good Guys is still exploring a range of options including an IPO.

JB Hi-Fi's shares rose by nearly $2 after the Australian Competition and Consumer Commission announced it would not oppose a hypothetical acquisition of The Good Guys.

JB Hi-Fi's shares were up by more than $9 dollars from the same time last year to reach $29.29 each at the time of publishing.