Dixons Carphone merger to complete in early August
Deal set for completion subject to shareholder approval. Carphone shareholders will vote at AGM on July 15th
Retailers
July 1, 2014
Connection base falls by 6.4 per cent to 8.4 million at mobile phone retailer
Carphone Warehouse and Dixons have both posted pre-tax profits of £133 million for the year-ending April 30 and March 29 respectively, as their merger moved a step closer.
Regulatory approval for the deal was supplied unconditionally by the European Commission yesterday and the companies are expected to provide a roadmap of the timetable for the merger in the coming weeks. It still requires approval from shareholders of both companies.
EBIT at Carphone grew by 14 per cent to £151 million, in-line with expectations, up from £132 million in 2013, on like-for-like revenues that grew by 5.3 per cent over the reporting period. Despite this, its connection base fell by 6.4 per cent to 8.4 million.
Carphone chief executive officer Andrew Harrision said the results proved that the retailer had had a “strong year” and pointed to 4G as a key driver.
“4G is now a major new dynamic in the mobile marketplace. The speed, range of new devices, increased data usage and new 4G tariffs have all increased our appeal to customers, building on our long-standing reputation for impartial advice and value,” he said in a statement.
The firm also confirmed it had 2,024 stores across Europe, 292 of which were franchise stores. It said it opened or re-sited 94 stores over the year and closed a further 130.