Dixons Carphone: shares plummet after profit warning.
(CercleFinance.com) - British electrical and telecommunications retailer Dixons Carphone warned on Thursday that its full-year pretax profit will be below its level last year, which has sent its shares down as much as 32%.
Dixons Carphone, which employs over 41,000 people in nine countries, cited a more challenging UK postpay mobile phone market, with the pound's depreciation meaning that handsets have become more expensive.
Chief Executive Seb James told that as a result, an increased number of people hold on to their phones for longer and taking these factors into account, as well as the disposal of the Spanish business, the group now expects headline 2017/2018 pre-tax profit to be in a range of 360 million to 440 million pounds.
By comparison, the company reported a headline 2016/2017 pre-tax profit of 501 million pounds, up 10%.
For the first quarter of 2017/2018 to 29 July, Dixons Carphone posted like-for-like sales growth of 6% across the group.
After this trading update, the shares were plummeting 32.1% at 159.8 pence in London this morning.
Copyright (c) 2017 CercleFinance.com. All rights reserved.
Dixons Carphone, which employs over 41,000 people in nine countries, cited a more challenging UK postpay mobile phone market, with the pound's depreciation meaning that handsets have become more expensive.
Chief Executive Seb James told that as a result, an increased number of people hold on to their phones for longer and taking these factors into account, as well as the disposal of the Spanish business, the group now expects headline 2017/2018 pre-tax profit to be in a range of 360 million to 440 million pounds.
By comparison, the company reported a headline 2016/2017 pre-tax profit of 501 million pounds, up 10%.
For the first quarter of 2017/2018 to 29 July, Dixons Carphone posted like-for-like sales growth of 6% across the group.
After this trading update, the shares were plummeting 32.1% at 159.8 pence in London this morning.
Copyright (c) 2017 CercleFinance.com. All rights reserved.