Dixons' sales boosted by demand for TVs during the World Cup
THE World Cup has kicked off demand for large-screen TVs helping lift sales at Dixons Retail ahead of its £3.7billion merger with Carphone Warehouse.
Currys and PC World owner Dixons said sales of TVs bigger than 32 inches had increased by nearly half in the six weeks before the soccer tournament in Brazil, with 55-inch models proving particularly popular.
It said the economic upturn had boosted people’s willingness to splash out on TVs, with demand rising 5 per cent higher than during the last World Cup in 2010.
Chief executive Sebastian James said: “Our World Cup performance has been more effective than England’s overall.”
The TV boom helped to make up for lower tablet computer sales but Dixons said it expects a recovery in the autumn as manufacturers Apple and Samsung launch new products for Christmas.
As well as a football boost, trading since the end of the year also benefited from what Dixons described as “glimmers” of a UK consumer recovery.
Dixons, which also owns chains in the Nordic countries and Greece, increased annual underlying pre-tax profits 76 per cent to £166.2million in the year to April 30, with group sales rising three per cent to £7.2billion.
Our World Cup performance has been more effective than England’s overall
Merger partner Carphone, led by founding chairman Sir Charles Dunstone, saw its pre-tax earnings in the year to March rise by £19million to £151million driven by 4G phones and use of data to surf the internet. It increased its dividend by a fifth to 6p for the year.
The two companies this week received European Commission approval for their planned merger, which they expect to complete by August. The deal would create a business with a £12billion turnover, 2,900 stores and 45,000 staff, which is likely to enter Britain’s FTSE 100 index.
Some analysts were disappointed with the pair’s pledge to save at least £80million a year by 2017-18, although the companies say that figure should rise going forward.
James said the combination would open up new markets such as home security as the enlarged company cashes in on growing use of smart-phones to control traditional electronic goods.
Dixons shares rose ½p to 48½p and Carphone rose 4p to 317½p.
