Dixons Carphone swings to loss

Dixons Carphone PLC (DC.LN) said Wednesday that it swung to a first-half pretax loss on the back of impairment charges and launched a transformation plan targeting cost savings of 200 million pounds ($251.2 million)

The FTSE 250-listed retailer of electrical and telecommunications products posted a pretax loss of GBP440 million for the six months ended Oct. 27 compared with a profit of GBP54 million in the year-earlier period. The company booked charges of GBP490 million mainly relating to non-cash impairments, it said.

Revenue edged up to GBP4.89 billion from GBP4.87 billion, Dixons said. On a like-for-like basis, revenue was up 2% in the first half and up 4% in the second quarter, the company said.

For fiscal 2019 as a whole, the company expects headline pretax profit to be around GBP300 million. Dixons now expects capital expenditure of around GBP190 million and exceptional cash costs of GBP100 million due to regulatory and data-incident costs, it said.

The board cut its interim dividend to 2.25 pence a share from 3.5 pence a year earlier.

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