LONDON (Reuters) - British electricals retailer Dixons Carphone (L:DC) said on Thursday the challenging market for mobile phones meant first-half profits fell by 60%, though it maintained its financial guidance for its full 2019-20 year.
The group has been hurt by a shift in the mobile phone market as customers keep their handsets for longer, choose cheaper SIM-only deals, and turn to more flexible credit-based offers.
Dixons Carphone, which trades as Currys, PC World and Carphone Warehouse in the UK and Ireland, stuck to a forecast for adjusted pretax profit of around 210 million pounds for its 2019-2020 financial year, 30% lower than in 2018-19.
For the 26 weeks to Oct. 26, it made a pretax profit of 24 million pounds, down from the 60 million pounds it made in the same period last year, on mobile revenue which was down 18%.
"Mobile is challenging as expected. As promised, this will be the trough year for mobile losses, and it will be break-even by 2022," CEO Alex Baldock said in a statement.
Shares in Dixons Carphone, down 14% over the last year, closed Wednesday at 123.5 pence, valuing the business at 1.5 billion pounds.