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Dixons Carphone's successful synergy merits strong growth

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Dixons Carphone (DC) has seen impressive profits against a “broadly flat market”, with sales boosted by the sale of white goods. 

Like-for-like revenue increased by 5% in the 26 week period ending 31 October 2015, with the company’s market shares growing by 31% in the UK & Ireland. Meanwhile iD, DC’s Mobile Virtual network Operator (MVNO), reached a milestone of 200,000 subscribers. 

Despite the decrease in demand for PCs and tablets, the sale of white goods, including refrigerators and washing machines, more than offset this and profits were only minimally effected.  

Expansion in the Nordics was somewhat hampered by the local exchange rate, though on a “constant currency basis” profits were maintained, and DC’s presence grew. Expansion was also achieved in Spain and Greece. 

“This has been a very good first half for Dixons Carphone,” said Group Chief Executive at DC Sebastian James. “Against a broadly flat market overall and a very strong comparative period we have seen continued like-for-like growth driven by market share gains across all territories…” 

“Across the board we continue to see improved customer satisfaction and price competitiveness which gives me confidence that our core business continues to be focused on the things that matter to our long term future.” 

The company has finally started to function as a “single Dixons Carphone entity”, according to James. Following the merger of Dixons and Carphone Warehouse, synergy has been the name of the game, with strategies including Currys collection points in Dixons Carphone stores. That being said, it was a relatively comfortable period to work out this synergy, following the fall of Phones 4U which greatly benefitted DC’s profits. 

“Overall then, I am very pleased with this performance but there is lots left to play for. A strong Black Friday was a great start to Christmas and I will look forward to communicating again in January with a more complete view of the season and plans for the year head.” 

Published on Wednesday 16 December by Philip Gallagher

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