Dixons Carphone profits drop 60% in half-year results

Dixons Carphone has reported a 60% decrease in profit in its first half, following a group adjusted profit before tax of £24m compared with £60m from last year.

In the year ending on 26 October, the business also reported a 1% decrease in like-for-like revenues in the UK and Ireland.

However, on a statutory basis the retailer revealed losses before tax actually narrowed to £86m compared win £440m in 2018.

Although online growth in electricals increased by 11%, mobile revenue in the UK and Ireland decreased by 18% for the half year.

Dixons Carphone said the loss for its financial year was “unchanged” at £90m. 

Alex Baldock, group chief executive said the company is “on track to deliver what we promised this year, and with our longer-term transformation.”

He 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., and we’ve taken important strides in our transformation. It’s easier for customers to shop how they want: we’re now gaining share Online as well as in stores, where we are investing to create exciting, enticing stores.”

He added: “More customers can also afford the tech they want: we now won’t be beaten on price, and more are taking up our Credit offer. More, too, are getting the most out of their tech through our services. 

“Mobile is challenging as expected. As promised, this will be the trough year for Mobile losses, and it will be break-even by 2022.”