Phone and electronics retailer Dixons Carphone has significantly narrowed its losses in the first half of the financial year.
The firm’s results for the six months to 26 October show it £86m in the red, down from £440m for the same period last year.
However, stripping out the effects of new reporting standards, the group’s adjusted profit more than halved to £24m from £60m last year, with revenue from mobile phone sales down by 18%.
The group’s overall revenue dipped 4% to £4.7bn, while on a like-for-like basis it was down 1%.
However, Dixons Carphone, which trades as Currys PC World and Carphone Warehouse, stuck to a forecast adjusted profit of £210m for the full year – 30% lower than 2018-19.
Shares rose by nearly 7% following publication of the latest figures, which the company said showed a ”robust performance”.
Analysts said investors were unsurprised by the results after indications from management earlier in the year and expectations were low.
Chief executive Alex Baldock said: ”Mobile is challenging as expected. As promised, this will be the trough year for mobile losses, and it will be break-even by 2022.”
He added: ”We’re on track to deliver what we promised this year, and with our longer-term transformation.
”In a tough UK electricals market, we’ve gained significant share and strengthened our market leadership.”
But Mr Baldock went on: ”Good progress, yes, but all of us at Dixons Carphone are shareholders and conscious that our business is still nowhere near its full potential.
”We’re determined to realise that potential and confident we’re on the right path to do so.”
AJ Bell investment director Russ Mould said: ”Dixons calls its performance ‘robust’ but that has to be viewed in relative terms to its troubles in recent years.
”An 18% decline in first-half mobile revenue is hardly what one would call robust, however expectations were low going into the results.
”The retailer has a turnaround plan which involves improving its online offering and making physical stores more engaging for customers, effectively using them as showcases for products and to give advice.”
John Moore, senior investment manager at Brewin Dolphin, said: ”There is undoubtedly a tough period ahead for Dixons Carphone, and an increasingly difficult retail environment will be of little help – but it seems that the company will be a survivor where others may not.”