Reports are that HMV, the renowned entertainment retailer, is now targeting a growth in earnings over the medium term by hiking sales of new offerings in music, visual and games and also raising its presence in the live music and ticketing sector.

In a strategy update that was shared on Friday, the company promised to bring a turnabout in its Waterstone's bookstore business as well, which managed to trade poorly during the Christmas season, and also shared that it would continue to maintain the present level of dividend as it rebuilds cover to 2.0 times.

"Having rebuilt profitability over the last three years, we have a clear strategy to continue the transformation of the group", said Chief Executive Simon Fox.

HMV has shared that it expects to maintain the company's UK net margin over the medium term at 5 to 5.5% and make that of Waterstone better to 2 to 3% in the short term and 3 to 4% over the medium term.

Over the past year, HMV shares have declined by a whopping 39%, underperforming the FTSE General Retailer index's hike of 57%.

In the strategy update, HMV also shared that it has targeted 25 Million More cost saving by the time 2012 rolls in.