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Dixons Carphone Plunges as Mobile Slowdown Leads to Warning

  • Shares drop by about a third, most since company’s formation
  • Increased number of Britons waiting longer to upgrade phones
The warning halts what was an unblemished record of profit growth since Dixons Carphone was formed in a merger three years ago.

The warning halts what was an unblemished record of profit growth since Dixons Carphone was formed in a merger three years ago.

Photographer: Luke MacGregor/Bloomberg
Updated on

Dixons Carphone Plc forecast an unexpected drop in earnings this year, sending its shares plunging by as much as 32 percent, as more expensive mobile phones and a lack of hot new products deterred Britons from upgrading their handsets.

Pretax profit will be in a range of 360 million pounds ($460 million) to 440 million pounds in the year through April, the U.K.’s largest electronics retailer said in an unscheduled statement Thursday. The average analyst estimate was 508 million pounds.