Dixons Carphone profit falls by 60%
Written by Peter Walker
Dixons Carphone has reported a 60 per cent fall in first half profits to £24 million, compared with £60 million during the same period last year.
Over the 26 weeks to 26 October, like-for-like revenue in UK and Ireland fell by one per cent, although wider group revenue was up by three per cent by the same measure.
Mobile revenue was to blame for the UK and Ireland figures - falling 18 per cent for the half year and down 10 per cent like-for-like - although Dixons Carphone stated it grew market wider share due to strong online growth.
Group chief executive Alex Baldock commented: “In a tough UK electricals market, we’ve gained significant share, and strengthened our market leadership.
“Our big international business also registered market share gains in every territory, with solid sales and margin improvements.”
Baldock continued: “As promised, this will be the trough year for mobile losses, and it will be break-even by 2022. Good progress, yes, but all of us at Dixons Carphone are shareholders, and conscious that our business is still nowhere near its full potential.”
The retailer’s guidance for a £90 million loss in the full 2019-2020 financial year remains unchanged.
Typically Dixons Carphone makes most of its annual profit in its second half of the year, and said that it was on track to achieve adjusted pre-tax profit of around £210 million for its 2019-2020 financial year, in line with previous forecasts.