Saturday 20 July 2019

Profits slump at Dixons Carphone

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

Dixons Carphone revenue was down 1pc to £10.43bn (€11.7bn) in the 12 months to April 27.

Headline pre-tax profits slumped 22pc to £298m (€335m).

On a statutory basis, the group reported a loss before tax of £259m, after £557m in non-headline charges.

Dixons Carphone said headline profits would slide again in the 2020 financial year to £210m.

Chief executive Alex Baldock said: "In UK mobile, the market is changing in the way we described in December, but doing so faster.

"So, we're moving faster to respond: we've renegotiated all our legacy network contracts, we're developing our new customer offer and are accelerating 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."

Meanwhile, Dixons Carphone Ireland (operating both Currys PC World, and Carphone Warehouse) enjoyed a "strong" financial year ended April 29, 2019.

Sales were up year-on-year, as the demand for high end technology products including Smart TVs, Smart Home technology products, and premium branded kitchen appliances continues to increase.

Following significant investment in its online channel to improve the customer journey, the Currys PC World website saw double digit growth in online sales during the year.

Meanwhile Dixons Carphone Ireland continued to invest in its bricks and mortar stores across the country by creating three in one "superstores", which brings the Currys PC World and Carphone Warehouse brands together under one roof.

Mark Delaney, managing director, Dixons Carphone Ireland said: "Our continued success in the Irish market is driven by the breadth of our product range, our relentless focus on customer service and the continued demand from consumers for better quality and more technologically advanced products."

(Additional reporting PA)

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