Dixons Carphone - Q4 2016/17 Trading Update

RNS Number : 0371G

Dixons Carphone PLC

24 May 2017

 

Dixons Carphone plc

Another year of growth for Dixons Carphone

Trading update for the 16 weeks ended 29 April 2017

·      Group reported revenues up 9% for the full year (up 6% in Q4)

·      like-for-like revenues up 4% for the full year (up 2% in Q4)

·      growth across all regions

·      Group gross margins broadly stable across the year

·      Group Headline PBT guidance of £485m-£490m (previous guidance £475m-£495m)

FY revenues

		Reported revenues % change	Local currency % change1	Like-for- like % change2
UK & Ireland		2%	2%	4%
Nordics		20%	5%	1%
Southern Europe		20%	4%	6%
Connected World Services		41%	37%	n/a
Group		9%	3%	4%

                 Note:

                 In the UK & Ireland, like-for-like revenues in the full year improved by approximately 3% as a result of sales successfully transferred from closed stores and sales disruptions. This mainly benefited UK&I electricals, where like-for-like revenues grew 7%.

Q4 revenues

		Reported revenues % change	Local currency % change1	Like-for- like   % change2
UK & Ireland		(1)%	(1)%	2%
Nordics		20%	7%	2%
Southern Europe		16%	6%	5%
Connected World Services		12%	11%	n/a
Group		6%	2%	2%

                 Note:

                 In the UK & Ireland, like-for-like revenues in Q4 improved by approximately 4% as a result of sales successfully transferred from closed stores. This mainly benefited UK&I electricals, where like-for-like revenues grew 7%.

Seb James, Group Chief Executive, said:

"I am pleased to be reporting on another good year at Dixons Carphone. Despite a lively political backdrop, we have been able to continue to grow our business and maintain very high levels of customer satisfaction across the Group. We have continued to evolve our approach to multi-channel and we have gained an even better understanding of how the online and offline worlds work together to help customers make great choices on these important and life-enhancing technologies.

Our full year like-for-like sales of 4% over the year is pleasing across the Group; in the last quarter, sales in the UK & Ireland were - especially in phone - impacted by the later launch of the iconic (and excellent) Samsung S8 and by a late Easter. Given our performance despite this headwind, our view is that the UK consumer continues to be active in the market, but we anticipate no let-up in their - very rational - view that price and service are critical factors in deciding where to shop.

Finally, I would like to thank our 42,000 colleagues in eleven countries around the world for their tireless work this year.  Electrical and phone retail can be a complex and lively business, but our colleagues have done a great job of making it look easy."

UK & Ireland

The UK & Ireland has had a good year with full year like-for-like revenues up 4% driven by a strong electricals performance. This has more than offset a tough year in phone, hampered by product issues, a limited supply in the market and some shift to SIM only. Total revenues grew by 2%. Q4 like-for-like revenues grew 2%, within this electricals grew strongly, whilst phone was impacted by the deferred release of Samsung S8 which was pushed back five weeks. During the year we have all but completed the transformation of our stores to the 3-in-1 format. We have also acquired and integrated Simplifydigital and doubled our market share of the broadband switch market, launched a brand new Carphone Warehouse web platform, whilst continuing to be competitive on price and maintaining very high levels of customer satisfaction.

Nordics

The Nordics delivered full year like-for-like revenues up 1% against a relatively tough backdrop. We have been focussed on managing both sales and margins whilst remaining price competitive and maintaining high levels of customer satisfaction. Q4 like-for-like revenues grew 2% against a tough comparative. The new warehouse at Jönköping is now fully operational and we have completed the integration of the Fona business in Denmark.

Southern Europe

Southern Europe has had another very good year, delivering full year like-for-like revenues up 6%. With Greece a particularly strong performer, the business continues to gain market share and improve its service and delivery propositions and in Spain the SmartHouse initiative is providing good momentum against a tough overall market backdrop.

Investor and analyst webcast

There will be a conference call for investors and analysts at 8:00am BST (9:00am CET) this morning.

Dial-in details - UK/International: [phone]; passcode to be quoted to operator: 5598

Seven-day replay - UK/International: [phone]; passcode: 6038556#

Next announcement

The Group will publish its full year results on Wednesday 28 June 2017.

For further information

Kate Ferry	IR, PR & Corporate Affairs Director	[phone]
Mark Reynolds	Head of Investor Relations	[phone]
Hannah Collyer	Head of Media Relations	[phone]
Nick Cosgrove, Helen Smith	Brunswick Group	[phone]
Information on Dixons Carphone plc is available at www.dixonscarphone.com Follow us on Twitter: @dixonscarphone and @DCSebJ
About Dixons Carphone Dixons Carphone plc is Europe's leading specialist electrical and telecommunications retailer and services company, employing over 42,000 people in eleven countries. Focused on helping customers navigate the connected world, Dixons Carphone offers a comprehensive range of electrical and mobile products, connectivity and expert after-sales services from the Geek Squad and Knowhow. Dixons Carphone's primary brands include Carphone Warehouse, CurrysPCWorld and Simplifydigital in the UK & Ireland, Elkjøp, Elkjøp Phonehouse, Elgiganten, Elgiganten Phone House, Gigantti and Lefdal in the Nordic countries, Kotsovolos in Greece, Dixons Travel in a number of UK & Ireland airports and Phone House in Spain. Our key service brands include Knowhow in the UK, Ireland and the Nordics, and Geek Squad in the UK, Ireland and Spain. Business-to-business (B2B) services are provided through Connected World Services, CurrysPCWorld Business and Carphone Warehouse Business. Connected World Services aims to leverage the Group's existing expertise, operating processes and technology to provide a range of services to businesses. Dixons Carphone was voted 'Retailer of the Year' at the Retail Week Awards 2016.

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. Information contained on the Dixons Carphone plc website or the Twitter feed does not form part of this announcement and should not be relied on as such.

Notes

(1)   Change in local currency revenue reflects total revenues on a constant currency and period basis.

(2)   Like-for-like revenue is calculated based on Headline store and internet revenue using constant exchange rates. New stores are included where they have been open for a full financial year both at the beginning and end of the financial period. Revenue from franchise stores are excluded and closed stores are excluded for any period of closure during either period. Customer support agreement, insurance and wholesale revenues along with revenue from Connected World Services and other non-retail businesses are excluded from like-for-like calculations. Revenue from Carphone Warehouse SWAS are included in like-for-like. We consider that like-for-like provides useful additional information to reported revenue as this enables performance of the Group to be measured on a consistent year-on-year basis.

 

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