Dixons Carphone shines but we’re not taking the tablets

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Seb James, chief executive of the newly merged phone and electricals retailer, suggested most people already had one and a technology shift was needed before people buy new versions.

His comments come as the company, created from a merger of the Currys, PC World parent and Carphone Warehouse, reported its first set of half-year results since the deal this year.

Sales rose 5% to £5.02 billion in the six months to beginning of November. However, the company made a £20 million loss before tax, thanks to the £100 million spent on the merger — lawyer and banker fees alone amounted to about £11 million.

Excluding the one-off payments, profits hit £78 million, compared with £60 million a year ago. However, because the two companies used to report at different times, the merged accounts have left the City plenty of room for interpretation.

Investors appeared impressed, with shares rising 3.8% to 443.1p, it means the share prices have risen nearly 60% this year.

James said he was also keen to win customers from the now-defunct Phones4U. But he admitted the customers were different from his own. “Phones4U focused on younger users, those aged 18 to 19, and we’re feeling our way to winning those.

“We want to get more than our fair share of Phones4U customers and we think that’s reasonable.”

Since the collapse of Comet, Dixons claims to have won around one-third of the former rival’s customers.

Its UK business was the best performer, with like-for-like sales rising 6% in the period, and helped offset an 11% slump in its southern European businesses.

James said: “There has been a bit of a recovery in the consumer environment. The iPhone 6 is doing incredibly well.” He added that Black Friday was far bigger than he expected. “It was a lot bigger than we had planned. We had plenty of stock and didn’t see the unseemly rioting in other retailers. We found when we ran out of Black Friday deals, we put in Boxing Day deals instead.”

Source Article from http://www.standard.co.uk/business/business-news/dixons-carphone-shines-but-were-not-taking-the-tablets-9931242.html

December 17, 2014 |
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