Published on June 20th, 2019 | by The GC Team0
Dixons Carphone warns of more pain to come as mobile market changes
Dixons Carphone made a pretax loss £298 million in the year to 27th April 2019, compared to a profit of £382 million in the previous year. The loss included charges of £557 million, mostly related to a write-down in the value of its mobile business.
Alex Baldock, Group Chief Executive, warned of more pain to come as the UK mobile market is changing faster than the company had expected some months ago. “So, we’re moving faster to respond,” he said.
The business has renegotiated legacy network contracts, developed a new customer offer, and accelerated the integration of Mobile and Electricals into one business.
“This means taking more pain in the coming year, when Mobile will make a significant loss,” Baldock said.
In electricals the business gained market share in all territories. Group like-for-like revenue rose 1%.
UK & Ireland electricals revenue gained 1%, international electricals revenue was up 4%, but UK & Ireland mobile like-for-likes were down 4%.
“In UK & Ireland electricals, we expect growing sales and headline profits this year and beyond,” said Baldock.
“Overall, with investment in our transformation underpinning UK & Ireland electricals and International growth in sales and headline profits, and accelerating the changes in Mobile, we’re confident to bring forward our long-term ambitions.”