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UPDATE 1-Dixons Carphone on track as first half profit jumps 30 pct
December 17, 2014 / 7:37 AM / 3 years ago

UPDATE 1-Dixons Carphone on track as first half profit jumps 30 pct

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LONDON, Dec 17 (Reuters) - Dixons Carphone, the electricals and telecommunications retailer, posted a 30 percent rise in first half profit on the back of market share gains and said it was on track to make expectations for the full year.

In August Dixons Retail, Europe’s No. 2 consumer electronics retailer, and Carphone Warehouse, Europe’s largest independent mobile phone firm, concluded an all-share merger to create Dixons Carphone, a consumer electricals powerhouse with a place in Britain’s blue chip FTSE 100 index.

The merged firm, which trades as Carphone Warehouse, Currys and PC World in the UK and Ireland, Elkjop and El Gigantti in Nordic countries and Kotsovolos in Greece, said on Wednesday it made a pro forma pretax profit of 78 million pounds ($122.6 million) in the 31 weeks to Nov. 1.

The group also posted a 5 percent rise in sales at stores open over a year. Second quarter like-for-like sales were up 9 percent, while gross margins were stable in the first half.

The firm made market share gains across its electrical and mobile businesses in the UK and Ireland, Nordics and Greece.

However, it said the Netherlands and Germany remained “challenging”, with action underway to “review and restructure”.

Dixons Carphone said its overall integration was progressing well and it now expected to deliver a minimum 80 million pounds of synergies by 2016-17, one year ahead of plan.

However, it posted statutory loss before tax from its continuing operations of 20 million pounds after booking exceptional charges of 100 million pounds.

Shares in Dixons Carphone, up 16 percent over the last three months, closed Tuesday at 427 pence, valuing the business at 4.9 billion pounds.

The firm is paying an interim dividend of 2.5 pence.

$1 = 0.6361 pounds Reporting by James Davey; Editing by Neil Maidment and Sarah Young

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