Jun 21, 2018

‘Plenty to do’: Profits at Dixons Carphone fall by a quarter

Electronics retailer Dixons Carphone reported a modest rise in revenue for the year to the end of April, even as profit before tax dived 24 per cent and the group warned that it expected next year's profit to fall by a further fifth. Dixons Carphone has had a turbulent few years, and newly appointed chief executive Alex Baldock described the company's performance in the mobile sector as "Unacceptable" earlier this month. Dixons Carphone has struggled to keep up with a challenging marketplace: mobile phone sales have been falling, while phone-only sales have been on the increase, with more than a third of handsets now sold without the call plans from which retailers like Dixons Carphone earn a commission. The group said it faced continued "Challenges" in the UK's mobile market, given "Market and current contractual constraints." Dixons Carphone must negotiate the renewal of contracts with EE, O2 and Vodafone in the coming months, which Mr Baldock has described as "Unsustainable" and in need of renegotiation to improve profitability. In May Dixons Carphone shed a fifth of its value after Mr Baldock warned that next year's profits would fall sharply in an unscheduled trading update.

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