Dixons Carphone (LON:DC) profits for the first half of the year dipped, as consumers increasingly opted to keep old handsets for longer.
Pre-tax profits dipped to £61 million in the six months to 28 October, compared to £154 million reported during the same period last year, with group revenues down 1 percent at £4.8 billion.
Like-for-like sales, without considering additional revenue from newly opened shops, ticked up by 4 percent.
Back in August the company issued a profit warning, cutting forecasts for the year.
The retailer said pre-tax profit for the year would be between £360 million to £440 million pounds, lower than average predicted by analysts’ of £495 million.
Dixons Carphone blamed weak currency movements as well as falling consumer demand for new handsets. Moreover, the later than expected launch of the iPhone X also impacted profits.
In a bid to remedy dipping profits, the electrical company has said it intends to simplify its mobile phone business moving forward.
In a statement, Chief Executive Seb James said: “We recognize that the performance of the mobile division needs addressing, and are taking action to adapt our model in order to cement our place in a changing world.”
Looking ahead, he added: “The start to peak trading has gone well with sales records being broken in all territories. Everywhere, we have seen material share gain and this shows that our retail businesses continue to be able to entice customers into buying the amazing new technologies that we offer. We must remember, though, that there is plenty of peak left to go.”
Dixons Carphone was formed after a merger back in 2014. Its UK brands, which compromise 40 percent of profits, include Currys, PC World and Dixons Travel. Elsewhere across Northern and Southern Europe its companies include Elgiganten, Κωτσόβολος and Lefdal.
Amid the news of a restructuring of its mobile business arm, Dixons Carphone have jumped 4.36 percent, as of 10.50AM (GMT).