The Channel logo

News

By | Joe Fay 20th June 2007 10:35

DSG computing sales up, profits down

Downers include laptops, France

The increasing popularity of laptops helped deflate margins at DSG international's computing operation, the firm revealed in its full year results today.

The electronics group turned in full year revenues of £7.9bn for the year to 28 April, up 14 per cent on the year. Pre-tax profits were £114.1m, down on the previous year's £295.9m. The profit figure was dented by a series of costs, particularly a write down on its Unieuro operation in Italy and the costs of overhauling its PC City operation in France.

The UK computing operation - ie PC World - turned over £1.9bn, up six per cent on the year, and turned in underlying profits of £124.8m, down slightly on the previous year's £129.4m. International computing turned over £347m, up 22 per cent. However, it turned in a loss of £28.2m, up on the previous year's £22.2m shortfall.

The computing operation had to swallow the costs of the PC City overhaul, and the launch of DSG's TechGuys service operation in the UK.

More generally, DSG highlighted "high levels of deflation in core hardware products". Or, put another way, kit gets cheaper, and you have to shift more of it. Laptops, once essential in boosting PC margins, are now a drag. You can only sell so much in the way of add-ons for a sealed box.

DSG said it hopes to reduce costs across its computing operations by bringing all its UK PC operations under a single unit, DSGi Business. ®

comment icon Read 3 comments on this article alert Send corrections

Opinion

Merlin Data Center Interior

Trevor Pott

Enterprises want them, but they're still a pain in the ASCII
WWI French tank picture via Shutterstock
Vinod_Khosla

Chris Mellor

A VC with startup agenda slams established suppliers. Surprised? Neither were we
ZenPad_RealRacing

Features

Eclipse image via Shutterstock
The Azure Portal: Microsoft is betting on cloud for its future business
container_ship_hamburg_shutterstock_648
Michael Dell. Pic by Joi Ito
Cool Texas dude is just your average billionaire