Dixons Carphone PLC (LON:DC) reported a 1% rise in full year revenues at constant exchange rates, reaching £10.3bn, as strong growth in online electrical sales across all regions more than offset a decline in mobile revenue.
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Underlying operating profits rose 22% to £262m, as lower gross margins on online sales were offset by cost savings and increased efficiency from higher sales.
The group declared a full year dividend of 3.0p per share.
Dixons Carphone shares were broadly flat in early trading.
Dixons Carphone’s Rapid Shift Into Online Sales
Nicholas Hyett, Equity Analyst at Hargreaves Lansdown:
“A year spending more time at home than we might like has electrified sales of technological wizardry, helped along by Dixons Carphone’s rapid shift into online sales and the decision to let customers buy products on credit as well as with cash. Management think the increased level of spending will be maintained too – no doubt helped by the larger number of people expecting to work from home in the future.
With Dixon’s Carphone securing a larger share of what it hopes will be a larger pie going forwards, it’s no wonder guidance is pretty upbeat. Even mobile, long a sore spot for the group, is expected to deliver positive free cash flow over the coming years as it completes its shift away from loss making bulk contracts to a more flexible set up including its own mobile offering under the Curry’s brand.
Investment in its ShopLive platform, enabling online customers to hook up via video to get advice from an assistant, is clearly paying off. Long term Dixons is betting that its service centric model will help it fend off online competitors, who may be cheaper on price but are unable to deliver a face-to-face service that customers value and are prepared to pay more for – whether that’s installation, advice or repair. With the group able to grow electrical sales despite store closures over the much of the last year, it might just be able to pull it off.”
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