Britain’s Dixons Carphone (DC.L) on Thursday reported another big fall in mobile phone sales in its latest quarter, though it maintained its financial guidance for the full 2019-20 year.
The group, which trades as Currys, PC World and Carphone Warehouse in the UK, said like-for-like sales in its UK & Ireland mobile phones division fell 10% in the 13 weeks to July 27, its fiscal first quarter.
Dixons Carphone has been hurt by a shift in the mobile phone market as customers keep their handsets for longer, choosecheaper SIM-only deals, and turn to more flexible credit-basedoffers.
In June the group said it planned to accelerate its response to the changing mobile market after reporting a 22% slump in annual profit and warning of another big fall in the current year. Its shares are down 30% over the past year.
“The mobile market is as challenging as expected, underlining the need for the decisive actions that we set out in June,” said Chief Executive Alex Baldock.
Dixons Carphone said first quarter like-for-like sales in its UK & Ireland electricals division rose 2%, while sales in its international division on the same basis were up 4%. Overall group like-for-like sales were flat – in line with analysts’ consensus expectations.
“The current political and economic climate is volatile but, assuming no material disruption from that, we stand by our full year guidance,” added Baldock.