Jun 20, 2019
Dixons Carphone shares tumble 25% on mobile market warning
Dixons Carphone has warned that there is "More pain" to come in its mobile division, with a "Significant loss" expected in the current year as it adapts to changing consumer behaviour in the sector. "But accelerating our transformation provides certainty that this year is the trough . . . we expect mobile will at least break even within two years," it added. The company predicted headline profit before tax of around £210m for the current year, before exceptional costs of around £80m. According to S&P Capital IQ, analysts were expecting underlying pre-tax profit of £295m for the current year. In the year ending April 27, same-store revenue across the group was up 1 per cent, with headline pre-tax profit of £298m against £382m the year before. The company's shares before Thursday's warning had fallen just over a third in the past year although it has only issued one explicit profit warning in that time - in May last year, when the newly installed Mr Baldock said the company had been too inward looking and distracted by noncore activities.
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