Jul 15, 2020

Dixons Carphone says virus will delay return of mobile phones unit to profit

Dixons Carphone warned the Covid-19 pandemic would delay the return of its mobile phone business to profitability and that economic uncertainty meant it could not forecast performance in its electricals division. The mobile phones unit made an operating loss of £104m before exceptional items in the year to May 2, against a previous company forecast of £90m. It would perform "Slightly" worse than anticipated in the current year. "Our new mobile offer will reflect how customers are buying phones and technology . . . but this has also been delayed as we paused system development during the crisis," the company said. It is in the process of moving the mobile business to the same IT system used by Dixons and had already decided to close all 531 standalone Carphone Warehouse stores before lockdown was imposed. Same-store sales in the UK electricals business grew 1 per cent over the full year but profit fell 10 per cent, almost all due to the impact of coronavirus-related store closures.

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