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.