Tuesday, 9 September 2014
Embargoed until 7am
Dixons Carphone plc
Q1 trading statement for the quarter ended 2 August 2014
A good start
Group
· Merger of Dixons Retail and Carphone Warehouse completed on 7 August 2014
· Integration progressing well with stores-in-store performing ahead of plan
· Dixons Carphone plc to join the FTSE 100 on 22 September
Dixons Retail
· Strong performance in the UK and Ireland with like-for-like sales up 4%
· The Nordics delivered a solid performance, against tougher comparatives, with like-for-like sales up 1%
· Encouraging performance from Greece with like-for-like sales up 6%
Carphone Warehouse
· CPW like-for-like sales down, as anticipated, by 6% due to a particularly strong performance in the prior year (+13% like-for-like) and difficult market conditions in Spain
· Further postpay market share gains in the UK, improved postpay mix and higher ARPU
· Completion of sale of Virgin Mobile France expected prior to interim results
Sebastian James, Group Chief Executive, said:
"I am pleased to report a good start to the year and to our new shared enterprise. Dixons Carphone looks to be in excellent shape to tackle the perpetually shifting sands of the market and to achieve its goal of improving our customers' lives through technology.
The integration is going well with 7 departments now serving both parts of the business in an integrated way and, although it is early days, our 11 stores-in-store are performing ahead of the business case that we set out in our merger announcement.
In the UK and Ireland our electricals business has had a strong start with good growth for a second year helped by the World Cup, some consumer recovery and a number of initiatives including free warranties on a wide range of products. As expected, our mobile business has been slower in the first quarter than last year, which saw an exceptional period of promotional activity. We have however seen postpay market share gains, improved postpay mix and higher ARPU from 4G, all of which have been helpful in offsetting this. We continue to have strong relationships with all our network partners, which means that we are now the only place where customers can really choose the proposition that is perfect for them.
In the Nordics we have had a solid start across the board against strong comparatives last year and the business seems set fair for a good year in terms of its competitive position. In Southern Europe there is no doubt that the Spanish and Portuguese markets remain quite tough for our mobile businesses, but our excellent teams are responding very entrepreneurially to these challenges. In the meantime, our Greek business has had an excellent quarter of growth and has developed a number of smart ideas that we will look to deploy more widely.
Our Connected World Services division has also had a good quarter deploying a contract with a major global brand and continuing the roll-out of operations across Europe for Samsung and Media-Markt Saturn. The pipeline remains strong and I look forward to discussing this exciting business in more detail as it develops.
I am also really pleased, on behalf of the whole team, that Dixons Carphone will join the FTSE 100 on 22 September. Passing this milestone, while not dramatic in itself, is a good sign of momentum and belief in our shared future.
In short, a good start."
Conference call
There will be a conference call for investors and analysts at 9.00 am this morning. The call will also be broadcast on our website, www.dixonscarphonegroup.com.
Dial-in details - UK/International: +44 (0)203 427 1903, USA: +1 646 254 3365, passcode 7881919
Seven-day replay - UK/International: +44 (0)203 427 0598, USA: +1 347 366 9565, passcode 7881919
Next announcement
The Group will be hosting a strategy update day on 8 October 2014. The Group will publish its Q2 trading and interim results on 17 December 2014.
For analyst and institutional enquiries
Kate Ferry - IR, PR & Corporate Affairs Director +44 (0) 7748 933 206
Kerry Becker - Senior IR Manager +44 (0) 7748 910 861
For media enquiries
Hannah Collyer - Head of Media Relations +44 (0) 1727 203041
Nick Cosgrove, Helen Smith - Brunswick Group +44 (0) 207 404 5959
Further operating and financial information
For the legacy Carphone Warehouse business the first quarter comprises the 18 week period from 30 March 2014 to 2 August 2014, whilst for the legacy Dixons Retail business the first quarter comprises the 3 month period from 1 May 2014 to 31 July 2014.
Carphone Warehouse data is on a pro forma basis, as though CPW Europe had been 100% owned by the Group throughout the current and prior periods. Prior to 26 June 2013, CPW Europe had been a 50% joint venture.
Headline revenue
|
Year-on-year Sterling |
Year-on-year local currency |
Like-for-like local currency |
Dixons - UK and Ireland |
3% |
3% |
4% |
Dixons - Nordics |
(7)% |
3% |
1% |
Dixons - Greece |
1% |
7% |
6% |
Dixons - Total |
(1)% |
3% |
3% |
|
|
|
|
Carphone Warehouse - Total |
(17)% |
(14)% |
(6)% |
About Dixons Carphone:
Dixons Carphone plc is Europe's leading specialist electrical and telecommunications retailer and services company, employing over 40,000 people in 14 countries.
Focused on helping customers navigate the connected world, Dixons Carphone offers a comprehensive range of electrical and mobile products, supported by expert after-sales services from the Geek Squad and Knowhow. Business-to-business services are provided through Connected World Services, PC World Business and Carphone Warehouse Business.
Dixons Carphone's primary brands include Carphone Warehouse, Currys and PC World in the UK and Ireland. Customers shop with Elkjøp, El Giganten, Gigantti and Lefdal in the Nordic countries, Kotsovolos in Greece, Dixons Travel in a number of European airports and Phone House in Germany, the Netherlands, Portugal, Spain and Sweden. Our key service brands include Knowhow in the UK, Ireland and the Nordics, alongside Geek Squad across the UK, Ireland and various other European markets.
For more information about Dixons Carphone plc, please visit www.dixonscarphonegroup.com.
Follow us on Twitter: @DixonsCarphone and @DCSebJ
NOTES
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.
