Due to changes in the UK mobile market Dixons Carphone has warned that their finances are under pressure for the coming year.
In the 12 months to 27 April, pre-tax losses were £259m, compared to a profit of £289m the previous year, this includes charges of £557m which relates to the changing UK mobile market.
Stripping out costs, profits dropped by 22% to £298m, revenue was down by 1% to £10.43bn.
Chief executive Alex Baldock said, “We expect mobile will at least break even within two years, and beyond that, equipped with a stronger and unconstrained offer, we will of course aim to do better.”
Emma-Lou Montgomery, associate director from Fidelity Personal Investing’s share dealing service, said, “While elsewhere in the group the five-year plan is going to plan – if not a little better – the mobile phone business is under considerable strain as customers demand flexibility, are sticking with their old phones for longer and Carphone is dragged down by binding network contracts.”