Dixons Carphone posts 60% drop in profits

Dixons Carphone posts 60% drop in profits
The Currys, PC World and Carphone Warehouse owner said it had been hurt by losses in its mobile phone business.
// Dixons Carphone made £24m in profit for this year’s H1, compared to £60m the year before
// The Currys, PC World and Carphone Warehouse owner said guidance for a £90m loss in the full financial year was unchanged.
// Group CEO: Business is “nowhere near its full potential”

Dixons Carphone has reported a 60 per cent fall in first half profit, after making adjusted profit before tax of £24 million in the first half of its year, compared with £60 million for the same time last year.

In the 26 weeks to October 26, like-for-like revenue in UK and Ireland fell by one per cent.

READ MORE: Dixons Carphone welcomes new execs to bolster digital team

The electronics fared better internationally, with half year revenue up one per cent and like-for-like revenue up three per cent.

Outside of the UK and Ireland, Dixons Carphone noted it also managed to grow its share of all markets it trades in thanks to strong online growth.

It was mobile revenue that dragged its UK and Ireland figures down, falling 18 per cent for the half year and down 10 per cent like-for-like.

“We’re on track to deliver what we promised this year, and with our longer-term transformation,” chief executive Alex Baldock said.

“In a tough UK electricals market, we’ve gained significant share, and strengthened our market leadership.

“Our planned investments in the colleague and customer experience have played a big part in this resilient performance, demonstrated by sharply increased customer satisfaction scores.

“Our big International business also registered market share gains in every territory, with solid sales and margin improvements.

“Mobile is challenging as expected. 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.

“We’re determined to realise that potential, and confident we’re on the right path to do so.”

Dixons Carphone said its guidance for a £90 million loss in the full 2019-2020 financial year was unchanged.

Typically Dixons Carphone makes most of its annual profit in its second half, and said that it was on track to achieve adjusted pretax profit of around £210 million for its 2019-2020 financial year, in line with its previous forecasts.

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  1. Last time I went in one of their stores I wanted a PC monitor and they just tried aggressively selling me a phone contract, so I left and bought it online instead! Never been back in.

  2. David I can totally understand where you are coming from, it’s absolutely shocking the way these guys sell contracts like they are some sort of hot cakes, I had the weirdest interactions with one of the salesman who actually started singing to me while trying to sell a laptop, it turned out he was actually a professional singer.

  3. Having worked on the computing sales department in a Currys/PC World store for the last 10 years I find the above people’s reactions confusing. We are neither targeted on selling phone contracts or have the ability to do so, possibly Josh and Adam were attempting to purchase a computer and a monitor from the carphone warehouse section and I can only urge them to explore the store further and locate the computing section next time. Nor are we all aspiring vocalists just waiting to sing at unsuspecting customers. In summary: If you don’t want a phone, don’t buy one and don’t blame us for Vodafone losing your number either.

  4. I went into the Portsmouth store last Wednesday needing to buy a new backup hard drive. I was impressed with the work that they have done to improve the store and found what I wanted very quickly. They are in a very tough market but the store looks very busy and is one of the few places that you can actually check the goods out before you buy. Like so many stores and this country the problem is how much debt they have.

    I wish them good luck


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