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Dixons Carphone hails 'terrific' year | Dixons Carphone hails 'terrific' year |
(35 minutes later) | |
Dixons Carphone has reported a 21% jump in profits in its first annual results since the merger that created the mobile phone and electrical goods firm. | Dixons Carphone has reported a 21% jump in profits in its first annual results since the merger that created the mobile phone and electrical goods firm. |
It reported underlying pre-tax profits of £381m in the year to 2 May, with revenues up 6% to £9.9bn. | It reported underlying pre-tax profits of £381m in the year to 2 May, with revenues up 6% to £9.9bn. |
The firm was formed last year by the merger of Carphone Warehouse and Dixons Retail. | The firm was formed last year by the merger of Carphone Warehouse and Dixons Retail. |
"This has been a terrific first year for Dixons Carphone," said the firm's chief executive Sebastian James. | "This has been a terrific first year for Dixons Carphone," said the firm's chief executive Sebastian James. |
"We have seen excellent increases in both sales and profitability and we have made very encouraging progress with the tricky job of integrating these two great companies," he continued. | "We have seen excellent increases in both sales and profitability and we have made very encouraging progress with the tricky job of integrating these two great companies," he continued. |
In the UK and Ireland, where it trades under the Carphone Warehouse, Currys and PC World names, sales rose by 8%. | In the UK and Ireland, where it trades under the Carphone Warehouse, Currys and PC World names, sales rose by 8%. |
UK sales were helped by the failure of rival mobile retailer Phones4U, which collapsed last September. | |
Keith Bowman, equity analyst at Hargreaves Lansdown Stockbrokers: "Profitability at the group's core UK and Irish operations has enjoyed a solid increase, aided by gains in market share, whilst merger cost savings remain on track." | |
In Greece, where Dixons Carphone trades under the Kotsovolos name, the firm said it recorded an increase in like-for-like revenues, with strong demand for large screen TVs. | In Greece, where Dixons Carphone trades under the Kotsovolos name, the firm said it recorded an increase in like-for-like revenues, with strong demand for large screen TVs. |
"We have a fantastic team in Greece," Mr James told the BBC. "They've been very entrepreneurial in thinking about every possible outcome, and how we would react to it." | "We have a fantastic team in Greece," Mr James told the BBC. "They've been very entrepreneurial in thinking about every possible outcome, and how we would react to it." |
However, trading in southern Europe had struggled with like-for-like sales down 5%. The firm said its business in Spain continued to operate in a "tough marketplace". | |
Earlier this month, Dixons Carphone announced a deal with US telecoms firm Sprint, which could lead to a joint venture opening up to 500 stores in the US. | Earlier this month, Dixons Carphone announced a deal with US telecoms firm Sprint, which could lead to a joint venture opening up to 500 stores in the US. |
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