Dixons Carphone reports “good start” to Q1 trading

<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.

Find up to date information on the FTSE 100 and spread betting strategies at City Index.

Build your confidence risk free
Join our live webinars for the latest analysis and trading ideas. Register now

StoneX Financial Ltd (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.