Dixons Carphone reports “good start” to Q1 trading
City Index September 9, 2014 2:45 PM
<p>Dixons Carphone has reported a positive performance in the first quarter of trading, despite revenue falls.</p>
The newly-merged electrical goods and mobile retailer Dixons Carphone has reported positive performance in its first quarter of trading.
Officials at the conglomerate stated that it has made a "good start" to its first quarter in operations although the separate companies were hit by drops in revenue. Dixons Retail, owner of Currys PC World, and Carphone Warehouse both experienced declines during this period. The former recorded a one per cent year-on-year drop in revenues while the latter saw a 17 per cent decline in revenue.
Both the separate firms involved have been affected by the merger ever since it was first announced. In May, both Dixons Retail and Carphone Warehouse saw their share price drop 10.3 per cent and eight per cent respectively on the news of the merger. However, this has not detracted from the strong start Dixons Carphone has made.
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."
While revenues had fallen for Dixons Retail, it had seen a boost in its like-for-like sales. In the UK and Ireland the company recorded a four per cent boost while it had also performed well in the Nordic countries and Greece, recording a one per cent and six per cent increase respectively.
Carphone Warehouse did not enjoy the same success as sales dropped by six per cent as it was hampered by difficult trading conditions in southern Europe.
Dixons Retail highlighted the World Cup as being one of the main drivers for its increase in sales as football supporters all over Europe were purchasing electrical goods so they could enjoy the finals.
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