Published on December 13th, 2017 | by The GC Team0
Dixons Carphone posts drop in first-half profits
Dixons Carphone has reported Group like-for-like revenue up 4% to £4,868m for the 26 weeks ended 28th October, but profit before tax fell to £61m from £154m in the same period last year.
Electricals put in a strong performance with like-for-like sales up 7%. The retailer reported growth across all markets and market share gains. Like-for-like UK & Ireland electricals rose 6%, the Nordics gained 8%, revenues in Greece were up 7%.
Like-for-like mobile sales in the UK & Ireland fell by 3%.
In August this year the retailer warned that the UK postpay mobile phone market was tougher, with a combination of higher handset costs and relatively incremental technology growth encouraging customers to hold on to their handsets for longer and some to choose a SIMO contract in the meantime. The later launch of the iPhone X also pushed some sales into the second half of the financial year.
Seb James, Group Chief Executive, said: “We recognise that the performance of the mobile division needs addressing and are taking action to adapt our model in order to cement our place in a changing world. We will update the market on these developments in due course, but we believe that we can, over time, reduce the complexity and capital intensity of our mobile business model and increase the simplicity and profitability of what we do.
“I am encouraged by the continued achievements in our electricals businesses across the Group with like-for-like sales up 7% and growth in revenues, market share, customer satisfaction and profitability in these markets thanks to our commitment to retail innovation and to serving customers well.”
James added that the Group expects to deliver full year profit before tax within the £360m to £400m range and the Board intends to maintain the full year dividend.