A growth in UK market share was the key driver behind Dixons Carphone’s positive half year financials, the retailer explained at its interim results.
In the UK, Dixons Carphone performed particularly well with earnings before tax coming in at £101m up 31% year-on-year.
The Group’s headline profit before tax was up 23% with revenue up 5% on last year’s performance and 3% on the previous quarter. The results follow on from a positive set of first year results.
Group CEO and Mobile Power 50 winner Sebastian James, said that he was pleased with the performance, revealing that Carphone Warehouse’s MVNO iD had seen a rise in customer numbers: ‘This has been a very good first half for Dixons Carphone. Against a broadly flat market overall and a very strong comparative period we have seen continued like-for-like growth driven by market share gains across all territories.
‘Our business in the UK and Ireland has had an impressive start to the year with 31% earnings growth. It is also great to see iD, our new MVNO, hitting the milestone of 200,000 subscribers to date.’
Married life begins
Since Carphone Warehouse and Dixons merged in the summer of 2014 there have been a number of internal structural changes. As well as moving the whole business to one headquarters in Acton, the retailer giant has established a global consultancy business called the Connected World Services (CWS). The unit was boosted in the summer with a £32m deal to advise US operator Sprint.
Speaking on the continued integration efforts and development of the CWS unit James said: ‘Our integration continues to go well and it gives me real pleasure to see the business looking and feeling like a single unit. The vast majority of the difficult decisions have been made and implemented and we will complete this with the move of the Carphone Warehouse depot to Newark in the New Year. I think that, with nearly all the bigger changes done, we are now ready to settle into a more normal married life and to think about our business as a single Dixons Carphone entity.
‘CWS has also had a very encouraging start to the year with the rapid rollout of the Sprint trial which has yielded excellent results so far across the board. In addition, we have done some very good work in developing our pipeline of major global accounts which should bear fruit in the months and years ahead.’