Dixons Carphone smarting from £440m loss as it writes down goodwill on mobile biz

www.theregister.co.uk | 12/12/2018 | Staff
lukealukea (Posted by) Level 4
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Dixons Carphone today reported a £440m statutory loss at the halfway stage of its fiscal '19 after writing down the goodwill of its mobile division, sending its shares tumbling by almost 12 per cent.

The results for the 26 weeks ended 27 October were filed along with the "vision" from new broom Alex Baldock, which includes handing the 30,000-strong workforce £1,000 worth of shares in the hope that giving them a stake in the business will lead to improved service.

Group - Sales - Cent - Year-on-year - UK

Group sales were up 1 per cent year-on-year to £4.893bn; UK & Ireland electrical grew 2 per cent to £1.997bn; UK & Ireland mobile was down 4 per cent to £1.009bn; Nordics was up 1 per cent to £1.675bn; and Greece grew 11 per cent to £212m.

Dixons said consumer electronics fuelled the rise in its homeland, along with "gaming stations" rolled out in seven stores, but said computing sales "remained softer, against which we gained share".

Revenues - Challenges - Postpay - Market - Period

Falling mobile revenues reflect "the challenges in the 24-month postpay market in the period, partly offset by improvements in SIM Only and SIM Free categories".

Dixons said in May it plans to shutter 92 Carphone Warehouse stores following a profit warning as customers refresh handsets less frequently.

Company - Profit - Tax - £50m - Versus

The company reported a profit before tax of £50m, versus £73m in the year-ago period, but charges of £490m, of which £338m pertains to non-cash impairments, left Dixons nursing a loss of £440m.

Baldock told Radio 5 Live: "Part of the transformation that we have to...
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