Australasian home entertainment giant JB Hi-Fi is continuing to back bricks-over-clicks in the wake of another record-breaking financial year.

The listed company, which operates the JB Hi-Fi, Clive Anthony and Hill & Stewart brands in Australia and New Zealand, delivered another record profit of
A$40.4 million ($32.3 million) in its year-end results released last week (Aug. 14).

The group recorded a 36% uplift in sales in the 2006/07 year, breaking through the $A1 billion ($800,000) revenue barrier for the first time.

JB Hi-Fi does not reveal details of its individual product categories, except to say that music, movies and games accounted for 33% of group sales in the past year, compared with 61% for consumer electronics.

However, chief executive Richard Uechtritz tells that JB's music sales had held up well, despite a general downturn in the Australian market.

And while the group is keeping a close eye on the growth of the digital market, the chain will continue to focus on traditional retailing. "Digital is always a concern and it's going to be a growing part of the business," he says.

"But I think good retailers can still compete well," Uechtritz adds. "We sell download music cards and have our own download Web site. But we are not going to put a lot of resources behind it because there are now well-established and well-run competitors out there like iTunes. We are retailers and good at that, and while we still have so much opportunity in this space, we will concentrate on that."

In May this year, JB Hi-Fi opened its first outlet in New Zealand and while it's still early days, Uechtritz says he is pleased with the initial results. The chain plans to open another two Auckland outlets in September and hopes to have at least five up and running before the end of the next financial year.

At this stage, the company is not planning to convert any of its 11-strong Hill & Stewart stores -- a NZ-only consumer electronics chain acquired in March this year -- into JB outlets.

In Australia, the group currently operates 71 JB stores and expects to open about 13 more in the coming financial year. Sister hardware chain Clive Anthony also expects to open another three stores, bringing its total to 9.