Business World

Friday 18 October 2019

Dixons Carphone swings into loss

Pedestrians walk past a Dixons electrical retail shop in London - REUTERS
Pedestrians walk past a Dixons electrical retail shop in London - REUTERS
Ellie Donnelly

Ellie Donnelly

Retailer Dixons Carphone has said it swung to a £440m (€487m) statutory loss for the half year to October 27 against profits of £54m (€60m) a year earlier after taking charges of £490m.

Dixons Carphone said on an underlying basis, interim pre-tax profits dropped to £50m from £73m a year earlier.

The group outlined details of a new strategy overhaul that will see it slash costs by £200m, including a plan to turn around the fortunes of its loss-making Carphone Warehouse mobile phone chain.

But it also said it was set to see costs surge over the full financial year, to £190m including a £17m hit from the cyber attack revealed in June that saw 5.9 million bank card details and 10 million personal data records hacked last year.

Dixons Carphone said it expects a full-year loss from its struggling Carphone business, but confirmed it remains on track for underlying profit guidance of £300m in 2018-19.

In Ireland Mark Delaney, MD of Dixons Carphone Ireland, said that the company had had another record breaking Black Friday.

"We are on track to further grow market share across all electronic and white good categories beyond last year’s increases," Mr Delaney said.

He continued, "In our mobile category, Carphone Warehouse secured exclusive deals which gave us better than the network pricing. This was reflected in our online sales, which were up by over 30pc."

"We sold more premium handsets with Huawei and Samsung flagship phones attracting huge demand."

(Additional reporting PA)

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