DC.............. BEATS16 Dec 2015 08:00
UPDATE 1 – Dixons Carphone beats first – half profit forecasts on strong UK
16-12-2015 07:49
(Adds details, quote)
LONDON, Dec 16 (Reuters) – Dixons Carphone , Britain's largest electricals and mobile phone retailer, beat forecasts with a 23 percent rise in first half profit, helped by a strong performance in its home market where it outperformed rivals.
The group, which trades as Currys, PC World and Carphone Warehouse in the UK and Ireland, Elkjop and El Giganten in Nordic countries and Kotsovolos in Greece, said on Wednesday it made an underlying pretax profit of 121 million pounds ($182.00 million) in the 26 weeks to Oct. 31.
That compares to analysts' average forecast of 111 million pounds, according to a company compiled consensus, and 98 million pounds made in the same period last year.
Group sales at stores open over a year rose 5 percent, driven by a 7 percent rise in the UK & Ireland division.
Dixons Carphone was formed through a merger last year of Dixons Retail and Carphone Warehouse and although investors initially reacted coolly to the plan, they have since been won over, with the shares up 37 percent.
"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," Chief Executive Sebastian James said.
The firm said a strong "Black Friday" discount day on Nov.
27 delivered its biggest-ever single day's trade and was "a great start to Christmas." Dixons Carphone also announced changes to its board, with the addition of the former CEO of BT Ian Livingstone as deputy chairman and Tony DeNunzio, the former head of Asda/Walmart UK as senior independent director.
Roger Taylor, the former CEO of Carphone Warehouse, will stand down as deputy chairman of the board with immediate effect.
Shares in the firm, up 12 percent over the last year, closed Tuesday at 476.7 pence, valuing the business at 5.53 billion pounds. ($1 = 0.6648 pounds)
(Reporting by James Davey; editing by Kate Holton) ((james.davey@thomsonreuters.com; +44 20 7542 7674; Reuters Messaging: james.davey.thomsonreuters.com@reuters.net)
Keywords: DIXONS CARPHONE RESULTS/
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