Dixons Carphone: warns of 'challenges'; shares drop
(CercleFinance.com) - Dixons Carphone warned on Wednesday of "headwinds and uncertainty" facing its business after its like-for-like revenue rose only slightly in the first-half of the year.
For the 26 weeks to October, the electrical and telecommunications retailer posted a 2% like-for-like increase in revenue. Second-quarter like-for-like growth came in at 4%.
The group's headline profit before tax fell to 50 million pounds in the first six months of fiscal year 2018/2019, down from 73 million pounds a year ago.
Moreover, the statutory loss before tax reached 440 million pounds, including non-headline charges of 490 million pounds, primarily relating to non-cash impairments, mainly goodwill.
The group took the opportunity to present a new strategic plan, focusing on growth opportunities in online and credit, and revitalising its mobile business.
Also, over 30,000 employees will become shareholders.
"There are headwinds and uncertainty facing any business serving the UK consumer, we've had our own challenges, and our plan will take time," said CEO Alex Baldock.
"But, with this plan, we can now see the way to unleashing the true potential of this business," he added.
However, investors were more skeptical and massively sold the shares this morning. The Dixons Carphone is currently in a spin - down 9.1% at 137.2 pence.
Copyright (c) 2018 CercleFinance.com. All rights reserved.
For the 26 weeks to October, the electrical and telecommunications retailer posted a 2% like-for-like increase in revenue. Second-quarter like-for-like growth came in at 4%.
The group's headline profit before tax fell to 50 million pounds in the first six months of fiscal year 2018/2019, down from 73 million pounds a year ago.
Moreover, the statutory loss before tax reached 440 million pounds, including non-headline charges of 490 million pounds, primarily relating to non-cash impairments, mainly goodwill.
The group took the opportunity to present a new strategic plan, focusing on growth opportunities in online and credit, and revitalising its mobile business.
Also, over 30,000 employees will become shareholders.
"There are headwinds and uncertainty facing any business serving the UK consumer, we've had our own challenges, and our plan will take time," said CEO Alex Baldock.
"But, with this plan, we can now see the way to unleashing the true potential of this business," he added.
However, investors were more skeptical and massively sold the shares this morning. The Dixons Carphone is currently in a spin - down 9.1% at 137.2 pence.
Copyright (c) 2018 CercleFinance.com. All rights reserved.