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Dixons results delight
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January 10, 2001: 9:46 a.m. ET
UK electronics vendor's core profits fall but top estimates as prospects brighten
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LONDON (CNNfn) - Electronics retailer Dixons Group on Wednesday posted lower first-half core profit but beat analysts' forecasts, helped by strong holiday-season sales of DVDs and mobile phones.
An upbeat forecast for profit margins also helped to drive shares of U.K.-based Dixons (DXNS) up 9.2 percent to 272 pence in afternoon trading, making it the day's top percentage gainer among members of London's FTSE 100.
The High Street retailer, parent of the Currys, Dixons and The Link chains, said pre-tax profit, excluding losses for its Internet arm Freeserve, fell to £90.8 million ($135.3 million) in the 28 weeks to Nov. 11, from £92.5 million a year earlier.
Analysts polled by Reuters anticipated pre-tax profit of £82 million to £88 million. 
Sales rose 27 percent to £2.2 billion. On a like-for-like basis – showing the sales of stores that had been open for at least a year – revenue rose 4 percent.
At the company's PC World chain of computer stores, like-for-like sales rose 5 percent even though the company said the PC market contracted by 4 percent.
The report came amid signs Europe's retailers fared well during the crucial holiday shopping season. British games vendor Electronics Boutique PLC (EBQ), France's Carrefour SA (PCA) and Germany's Metro AG (FMEO) all published strong sales reports this week.
Dixons last month announced that it agreed to sell its 79 percent stake in loss-making Internet service provider Freeserve, Britain's biggest ISP, to France Telecom SA's Internet unit Wanadoo (PDOO) in a deal worth £1.6 billion ($2.4 billion).
-- from staff and wire reports 
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Dixons Group
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