Dixons Carphone PLC FY20 - 1Q Trading Update (2689L)

TIDMDC.

RNS Number : 2689L

Dixons Carphone PLC

05 September 2019

5 September 2019

Trading Update for 13 weeks ended 27 July 2019

On track to meet our commitments

   --   UK & Ireland electricals like-for-like revenue +2% 

o Strong performance in white goods, tablets and gaming; offset by small declines in large screen TVs against World Cup comparatives

o Market share gains in-store and online

   --   International like-for-like revenue +4%, Nordics +4%, Greece +7% 

o Share gains across all markets, most significantly in Finland and Sweden

o Online growth strong, particularly in Nordics, aided by enhanced Click & Collect proposition

   --   UK & Ireland mobile like-for-like revenue -10% 

o In line with plan in what continues to be a challenging traditional postpay market

o Progressing on business consolidation and new customer proposition

   --   Continued progress against strategic initiatives 

o Credit: Further acceleration in customer Credit adoption

o Online: Growth in Electricals +14%. On track to grow UK range by 5,000 SKUs this year

o Easy: Continued improvement in customer satisfaction

o Services: Good early traction on new protection services

   --   All guidance for the year remains unchanged(1) 

Alex Baldock, Group Chief Executive

"We're on track with both our trading this year and our longer-term transformation.

In Electricals we continued to grow and win market share in all territories and customer satisfaction further improved. The Mobile market is as challenging as expected, underlining the need for the decisive actions that we set out in June. We remain committed to growing Electricals sales and headline profits in UK & Ireland and International this year, and to this being the trough year for Mobile losses.

Our longer-term transformation is also on track. We made further gains in our big priorities of Online, Credit and Services to help our customers choose, afford and enjoy amazing technology. Over time these will drive increasing benefits for our customers and help make us a much more sustainably valuable business.

The current political and economic climate is volatile but, assuming no material disruption from that, we stand by our full year guidance, as we do our longer-term commitments on EBIT margin and cashflow(1) ."

 
 1Q 2019/20 revenue           Reported       Local   Like-for- 
                                          currency        like 
---------------------------  ---------  ----------  ---------- 
  UK & Ireland Electricals          2%          2%          2% 
   International                    4%          5%          4% 
   - Nordics                        4%          5%          4% 
   - Greece                         7%          6%          7% 
---------------------------  ---------  ----------  ---------- 
 Electricals                        3%          3%          3% 
---------------------------  ---------  ----------  ---------- 
  UK & Ireland Mobile             -12%        -13%        -10% 
---------------------------  ---------  ----------  ---------- 
 Group                              0%          0%          0% 
---------------------------  ---------  ----------  ---------- 
 

1. All guidance is based on assumption of no major macro-economic changes, for example no material impact from Brexit, and the profit numbers also exclude any significant revaluation in network debtors, up or down, which might arise from changes in the regulatory environment or for other reasons. It is also before implementation of IFRS16.

Next announcement

The Group will publish its interim results on Thursday 12 December 2019.

For further information

 
Assad Malic   Group Strategy & Corporate Affairs Director   [phone] 
Dan Homan     Head of Investor Relations                    [phone] 
Amy Shields   Head of External Communications               [phone] 
Tim Danaher   Brunswick Group                               [phone] 
------------  --------------------------------------------  ------------------- 
 

Information on Dixons Carphone plc is available at www.dixonscarphone.com

Follow us on Twitter: @dixonscarphone

About Dixons Carphone

Dixons Carphone plc is a leading multinational consumer electrical and mobile retailer and services company, employing over 42,000 people in nine countries. We Help Everyone Enjoy Amazing Technology, however they choose to shop with us.

We are the market leader in the UK & Ireland, throughout the Nordics and in Greece. With a full range of services and support, we make it easy for our customers to discover, choose and enjoy the right technology for them, throughout the life of the product. Our core multichannel operations are supported by an impressive distribution network and sourcing office in Hong Kong and a state-of-the-art repair facility in Newark, UK.

Our brands include Currys PC World and Carphone Warehouse in the UK & Ireland and iD Mobile in the UK; Elkjøp, Elgiganten and Gigantti in the Nordics; and Kotsovolos in Greece. Our Dixons Travel brand has a presence across several UK airports as well as in Dublin and Oslo, and our services are provided through Team Knowhow in the UK, Ireland and the Nordics.

Certain statements made in this announcement are forward-looking. Such statements are based on current expectations and are subject to a number of risks and uncertainties that could cause actual results to differ materially from any expected future events or results referred to in these forward-looking statements. Unless otherwise required by applicable laws, regulations or accounting standards, we do not undertake any obligation to update or revise any forward-looking statements, whether as a result of new information, future developments or otherwise. Information contained on the Dixons Carphone plc website or the Twitter feed does not form part of this announcement and should not be relied on as such.

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact [e-mail] or visit www.rns.com.

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September 05, 2019 02:00 ET (06:00 GMT)