U.K. entertainment retailer HMV increased sales in the U.K. and Ireland by 13.4% over the 10-week Christmas trading period compared to the previous year.

Meanwhile, the retailer's diversification into venues looks set to continue in 2010. The Times reports that HMV Group is in advanced talks to acquire U.K. club operator Luminar.

Like for like sales by value over the 10 weeks to Jan. 2 were up 1.4%.

Over the crucial five weeks up to Jan. 2, total sales in the U.K. and Ireland were up 14.6% compared to the previous year, while like for like sales were up 2.2%.

However, despite the strong performance in the company's backyard, international sales - in Canada, Hong Kong and Singapore - were down, and like for like group sales for HMV Group were also down due to disappointing Christmas trading figures for bookseller Waterstone's.

The interim management statement did not disclose value figures for the trading period.

In a statement, HMV Group said its additional HMV sites at ex-Zavvi stores and temporary stores in 2009 delivered an "excellent performance."

More than 27 million CDs, DVDs and games were sold in HMV U.K. at Christmas. The retailer did not break down the performance of music but it boasted of "strong sales and market share across all categories." Sales for technology and related products were up 50% year-on-year for the Christmas period.

HMV also confirmed it expects to issue a formal offer document to Mama Group shareholders tomorrow (Jan. 15) and the first closing date is Feb. 5. It has made an offer of £46 million ($74.9 million) for its live venue joint venture partner.

"As we approach the final part of our three-year plan to transform the group, it is pleasing to report that HMV U.K. has enjoyed record trading for a third successive Christmas," said chief executive Simon Fox in a statement. "Consequently, we remain confident in the outlook for the group for the current financial year."