* Year underlying profit 63 million sterling vs forecast 62 million
* Year dividend kept at 7.4 pence a share
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LONDON, June 30 (Reuters) - British music and books retailer HMV Group posted an 11.5 percent rise in annual profit as it benefited from the demise of rivals, and said it was confident about its new financial year despite a weak economy.
The 88-year-old firm, which runs music, DVD and video games shops under its own name as well as Waterstone's bookstores, said on Tuesday it made profit before tax and one-off items of 63 million pounds ($104 million) in the year ended April 25.
Analysts' median forecast was 62 million in a Reuters Estimates poll of 18.
Sales from continuing operations rose 4.4 percent to 1.96 billion pounds and the dividend was kept at 7.4 pence a share. ($1=.6076 Pound) (Reporting by Mark Potter; Editing by Jon Loades-Carter)