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Dixons Carphone's first-half profit plunges on mobile weakness

Dixons Carphone trades as Currys, PC World and Carphone Warehouse in the UK and Ireland
Dixons Carphone trades as Currys, PC World and Carphone Warehouse in the UK and Ireland

UK electricals retailer Dixons Carphone said today that the challenging market for mobile phones meant first-half profits fell by 60%, though it maintained its financial guidance for its full 2019-20 year.

The group has been hurt by a shift in the mobile phone market as customers keep their handsets for longer, choose cheaper SIM-only deals, and turn to more flexible credit-based offers.

Dixons Carphone trades as Currys, PC World and Carphone Warehouse in the UK and Ireland.

It stuck to its forecast for adjusted pre-tax profit of around £210m for its 2019-2020 financial year, 30% lower than in 2018-19. 

For the 26 weeks to October 26, it made a pre-tax profit of £24m, down from the £60m it made the same time last year, on mobile revenue which was down 18%. 

"Mobile is challenging as expected. As promised, this will be the trough year for mobile losses, and it will be break-even by 2022," CEO Alex Baldock said in a statement. 

Shares in Dixons Carphone are down 14% over the last year.