Retailer Results / Dixons Carphone


Dixons Carphone

Trading Update
12 months to 30 April 2016

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Dixons Carphone

Trading Update
16 weeks to 30 April 2016


• Group Headline PBT now expected to be between £445m and £450m for the year, in the top half of previous guidance
• Group like-for-like revenues up 5 per cent in Q4 and in the full year
• Year-end net debt expected to be below £300m
• Further market share gains across electricals and mobile in the UK & Ireland, Nordics and Greece
• Continued improvements in customer satisfaction and price competitiveness across all key markets


The UK & Ireland has had a strong year with full year like-for-like revenues up 6 per cent driven by mobile phone market share gain together with good growth in electricals. Total revenues grew by 2 per cent. Q4 like-for-like revenues grew 4 per cent against a strong comparative period.

Dixons Carphone also claimed that customer satisfaction scores are at all-time highs and they continue to gain share in both mobile and electricals. The acquisition of Simplifydigital, the UK’s largest - and fastest growing - multi-channel switching platform, leaves the business well-positioned to benefit from growth in the multi-play market.

Sebastian James, Group Chief Executive, said: “I am delighted with the way the last year has gone, and very proud to be part of the highly committed 42,000-strong team in eleven countries that have made it possible. We have continued to see good like-for-like growth with a very strong performance in our mobile phone business in the UK. I am also pleased that growth has been seen in pretty much all of our businesses across the Group. As a result we are confident in narrowing our profit range upwards, with PBT now expected to be between £445m and £450m for the year, an increase of approximately 17 per cent over last year.

“There has been much commentary about the state of mind of UK consumers. Our view is that consumers are ready to spend but have - rightly - become more canny, and so need to be tempted with great deals and exciting new products. We see this as encouraging; after all, launching new technology well, creating fun events and coming up with great deals for customers in both the digital and physical worlds is our stock-in-trade.”


Dixons Carphone

Trading Update
Interim results for the 10 weeks ended 9 January 2016


• Group H1 like-for-like revenue up 5 per cent
• Record Black Friday and market gain shares across UK & Ireland, Nordics, Greece and Spain
• Group PBT range of £440m to £450m expected for full year – ahead of consensus


The Dixons Carphone merger continues to go from strength to strength posting like-for-likes up 5 per cent in the 10 weeks to 9 January. Black Friday was a success with the company setting an all-time record on the day with sales boosted from a strong promotional period. Communications was one of the stand-out performers. It is also likely that the electricals business continued to deliver consistent results in the sale of white goods, supported by a buoyant housing market.

Synergies between the two businesses are coming to fruition and management claim that the 3-1 refurbished concept stores have been a success. There are now plans to roll this format out across the whole market. This will involve merging the remaining PC World and Currys stores and combining Carphone Warehouse. This will reduce the overall store portfolio by 134 but management are confident that the impact on sales and colleague numbers will be neutral or better.

There will be further c.£50m incremental capex investment to refit these stores. This will also recognise a provision of approximately £70m in FY 2015/16 comprising property exit costs, asset write downs and operational costs associated with the programme. Given that the programme will be implemented during FY 2016/17, it is anticipated that the benefit to FY 2016/17 earnings will be modest, but thereafter this activity will contribute approximately £20m of incremental annual earnings from recurring costs savings.

Sebastian James, Group Chief Executive, said: “I am very happy to be reporting a further year of good like-for-like growth over our peak trading period. The two-humped camel shape that emerged last year was further accentuated with an all-time record day on Black Friday and a strong promotional period after Christmas. In all territories we saw continued market share gain, especially in UK mobile. In the Nordics we had a huge Black Friday, but currency weakness and oil price continues to impact the Norwegian market, and so it was good to see growth despite this. In Southern Europe we have had a strong peak with our Greek business in particular going from strength to strength. Once again, customer satisfaction metrics moved forward year-on-year as did price competitiveness.”


Dixons Carphone

Trading Update
Interim results for the 26 weeks ended 31 October 2015


• Group H1 like-for-like revenue up 5 per cent
• Q2 like-for-like up 3 per cent
• Market share gains across UK & Ireland, Nordics, Greece and Spain
• Group PBT of £121m (14/15: £98m), up 23 per cent
• Group EBIT of £135m (14/15: £120m)
• Group EPS 7.5p (14/15: 6.3p)
• Statutory profit before tax from continuing operations of £78m (14/15: £71m) after non-Headline charges of £43m (14/15: £31m)


Group like-for-like revenue growth in the first half was 5 per cent, with growth in all territories. On a local currency basis revenue has increased 2 per cent, however, Group revenue in the first half was down 3 per cent to £4,394m (14/15: £4,530m) due to the stronger Pound, in particular relative to the Norwegian Krone.

In the UK and Ireland, revenue in the first half increased by 2 per cent to £2,872m (14/15: £2,818m). This revenue growth combined with cost savings and synergy savings has resulted in EBIT increasing 31 per cent to £101m (14/15: £77m). A positive performance with Dixons Carphone positioned well for the peak trading period ahead.

The electricals business has delivered a consistent result in the first half, with notable growth in the sale of white goods, supported by a buoyant housing market. This offset a fall in demand for tablets and PCs, following recent market trends.

Synergies between the two businesses continue to be ahead of plan and delivering significant savings. There were 261 Carphone Warehouse SWAS operating within Currys and PC World stores at the end of October. Further consolidation of sales space and a 3-in-1 store formats are continuing to showing promising results.
Like-for-like revenue for the first half was up 7 per cent reflecting the particularly strong performances from UK mobile category.

Sebastian James, Group Chief Executive, said: “This has been a very good first half for Dixons Carphone. Against a broadly flat market overall and a very strong comparative period we have seen continued like-for-like growth driven by market share gains across all territories. Our business in the UK and Ireland has had an impressive start to the year with 31 per cent earnings growth. It is also great to see iD, our new MVNO, hitting the milestone of 200,000 subscribers to date.

“CWS has also had a very encouraging start to the year with the rapid rollout of the Sprint trial which has yielded excellent results so far across the board. In addition, we have done some very good work in developing our pipeline of major global accounts which should bear fruit in the months and years ahead.

“Overall then, I am very pleased with this performance but there is lots left to play for. A strong Black Friday was a great start to Christmas and I will look forward to communicating again in January with a more complete view of the season and plans for the year ahead.”

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