(Alliance News) - Dixons Carphone PLC on Wednesday said it saw strong online sales in the first half of its financial year, driving the company to a profit.
The stock was up 15% at 124.40 pence each in London on Wednesday morning.
The electrical products and mobile phone retailer swung to a pretax profit in the six months ended October 31 of GBP45 million from GBP86 million loss a year prior.
Revenue was up to GBP4.86 billion from GBP4.71 billion a year before. The 3.2% increase was driven by online sales, which more-than-doubled, Dixons said.
Chief Executive Alex Baldock said: "We've achieved this performance by doing what we said we'd do. We're winning online, and have triple-digit growth and rapid market share gains to show for it. Still, most customers prefer to buy technology through a mix of online and in store, and we've innovated fast to bring the best of both digital and physical shopping to every customer."
For UK & Ireland Electricals, revenue was up 15%, or 16% like-for-like, and online sales more than doubled, offsetting a loss of sales from enforced store closures and in Dixons Travel. UK&I Mobile didn't fare as well; revenue declined by 54%. In the international business, revenue rose 16% and was up 18% like-for-like.
Trading since the half-year ended on October 31 has continued strongly, Dixons said. In UK & Ireland Electricals, like-for-like growth was 11% in the six weeks to December 12 despite stores in England, Wales, Scotland and Northern Ireland having been closed for substantial periods.
Dixons did not declare an interim dividend, compared to 2.25 pence a year prior.
Going forward, Baldock said: "The outlook remains uncertain, and we're still nowhere near our full potential. Much hard work lies ahead. But this year has shown this business's qualities, especially the grit and skill of our colleagues. Our strategy has been stress-tested as never before, we've had one arm tied behind our back versus our competitors, and we've responded with stronger performance and an accelerating transformation.
"I'm more confident than ever that we're on the right path to create a world class business for colleagues, customers, shareholders and society," he added.
All near-term and medium-term guidance remains unchanged.
By Greg Roxburgh; gregroxburgh@alliancenews.com
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