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Dixons Carphone PLC

Dixons Carphone PLC On track to meet commitments

Dixons Carphone PLC (LON: DC.) today provided a trading Update for 13 weeks ended 27 July 2019.

· UK & Ireland electricals like-for-like revenue +2%

o Strong performance in white goods, tablets and gaming; offset by small declines in large screen TVs against World Cup comparatives

o Market share gains in-store and online

· International like-for-like revenue +4%, Nordics +4%, Greece +7%

o Share gains across all markets, most significantly in Finland and Sweden

o Online growth strong, particularly in Nordics, aided by enhanced Click & Collect proposition

· UK & Ireland mobile like-for-like revenue -10%

o In line with plan in what continues to be a challenging traditional postpay market

o Progressing on business consolidation and new customer proposition

· Continued progress against strategic initiatives

o Credit: Further acceleration in customer Credit adoption

o Online: Growth in Electricals +14%. On track to grow UK range by 5,000 SKUs this year

o Easy: Continued improvement in customer satisfaction

o Services: Good early traction on new protection services

· All guidance for the year remains unchanged1

Alex Baldock, Dixons Carphone PLC Group Chief Executive said

“We’re on track with both our trading this year and our longer-term transformation.

In Electricals we continued to grow and win market share in all territories and customer satisfaction further improved. The Mobile market is as challenging as expected, underlining the need for the decisive actions that we set out in June. We remain committed to growing Electricals sales and headline profits in UK & Ireland and International this year, and to this being the trough year for Mobile losses.

Our longer-term transformation is also on track. We made further gains in our big priorities of Online, Credit and Services to help our customers choose, afford and enjoy amazing technology. Over time these will drive increasing benefits for our customers and help make us a much more sustainably valuable business.

The current political and economic climate is volatile but, assuming no material disruption from that, we stand by our full year guidance, as we do our longer-term commitments on EBIT margin and cashflow1.”

1Q 2019/20 revenueReportedLocalcurrencyLike-for-like  
  UK & Ireland Electricals2%2%2%
  International4%5%4%
   – Nordics4%5%4%
   – Greece7%6%7%
Electricals3%3%3%
  UK & Ireland Mobile-12%-13%-10%
Group0%0%0%
  1. All guidance is based on assumption of no major macro-economic changes, for example no material impact from Brexit, and the profit numbers also exclude any significant revaluation in network debtors, up or down, which might arise from changes in the regulatory environment or for other reasons. It is also before implementation of IFRS16.

Next announcement

The Group will publish its interim results on Thursday 12 December 2019.