Dixons Carphone financials report strong UK growth

Dixons Carphone financials report strong UK growth

Dixons Carphone will undergo a retail restructure as strong UK growth drives revenue increase.

The company’s trading update revealed a 5% year-on-year revenue growth, following a strong performance in the UK mobile. The high street retailer’s success comes off the back of a successful Christmas and Black Friday sales.

The latter saw the brand score record sales, with Carphone Warehouse selling more Samsung Galaxy S6 and iPhone 6S devices then on their respective launch weeks.

Dixons Carphone CEO Sebastian James said: ‘I am very happy to be reporting a further year of good like-for-like growth over our peak trading period. The two-humped camel shape that emerged last year was further accentuated with an all-time record day on Black Friday and a strong promotional period after Christmas. We saw continued market share gain, especially in UK mobile.’

The retail plans to continue this success well into 2016, announcing a major distribution deal with UK MVNO TalkTalk: ‘In the UK we have signed a significant distribution agreement with TalkTalk. With a strong pipeline, we are excited about the future for CWS.’

Retail restructure

The Dixons Carphone boss also set forth a strategy to continue generating UK revenues for the coming year, announcing a major retail revamp to improve customer experiences. The new ‘3-in-1’ initiative will merge remaining PC World and Curry’s stores while adding a Carphone Warehouse, reducing store numbers by 134.

‘Integration continues to go well,’ he said, ‘we are seeing the benefits that we expected from the merger, and these will roll through into the next full year. We are now rolling out the 3-in-1 format across the UK and Ireland to enhance long-term earnings and improve our customer experience. Our experience has taught us that the net effect on both sales and colleague levels is likely to be neutral or better.’

US success

The high street brand also announced the success of its stateside proposition, partnering with US network Sprint in a £32m deal last year to manage their retail shops. Initially planned to run 20 Sprint stores, James has now announced that this will be ramped up to 500 stores.

Dixons Carphone has also scaled up its Internet of Things platform honeyBee, announcing two new network partnerships in the US to implement IoT in retail shops.

James said: ‘I am really delighted that our Sprint trial has gone so well, and we have now agreed with Sprint that the joint venture should go into full production towards its target of 500 stores. We have also extended our agreement with a major US manufacturer to implement honeyBee for two US networks in their retail stores.’

 

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