Original URL: http://www.channelregister.co.uk/2007/06/20/dsg_numbers/
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. ®
PC World, Currys staff to be dumped in DSGi rescue plan? (12 May 2008)
http://www.channelregister.co.uk/2008/05/12/dsgi_store_closures_speculation/
Sales slide at PC World, Currys (10 April 2008)
http://www.channelregister.co.uk/2008/04/10/dsgi_issues_second_profit_warning/
John Clare surprised at DSG raids (14 February 2008)
http://www.channelregister.co.uk/2008/02/14/clare_intel_raid/
Dixons shares spanked after profit warning (3 January 2008)
http://www.channelregister.co.uk/2008/01/03/dsgi_profit_warning/
Dell parks itself in PC superstores across Europe (13 December 2007)
http://www.channelregister.co.uk/2007/12/13/dell_dsgi_deal/
Dixons grinches Christmas (28 November 2007)
http://www.channelregister.co.uk/2007/11/28/dixons_results_vista_laptops/
PC World feels the Vista pinch (again) (18 October 2007)
http://www.channelregister.co.uk/2007/10/18/dsg_vista_profits_down/
PC superstore suffers breakdown over Linux notebook (17 September 2007)
http://www.channelregister.co.uk/2007/09/17/pc_world_linux_frustration/
PC superstore unhinged by Linux (13 September 2007)
http://www.channelregister.co.uk/2007/09/13/pc_world_linux/
Vista launch jamboree leaves PC World with indigestion (30 August 2007)
http://www.channelregister.co.uk/2007/08/30/pcworld_results/
Laptop sales drive PC shipments in EMEA (24 July 2007)
http://www.channelregister.co.uk/2007/07/24/pc_sales_increase/
PC World, Orange, and Pipex sneeze out broadband offers (18 July 2007)
http://www.channelregister.co.uk/2007/07/18/pcworld_pipex_orange/
DSG hires Tesco man as new chief exec (7 June 2007)
http://www.channelregister.co.uk/2007/06/07/dsg_tesco_browett/
Not happy with PC World's customer service? (4 June 2007)
http://www.channelregister.co.uk/2007/06/04/pcworld_currys_stock/
Dell cuts, Google hits the street and robot-moths are go (1 June 2007)
http://www.theregister.co.uk/2007/06/01/reg_weekly_1june/
Dixons Store Group loses head (31 May 2007)
http://www.channelregister.co.uk/2007/05/31/dsg_boss_goes/
DSG results hit by sunshine (17 May 2007)
http://www.channelregister.co.uk/2007/05/17/dsg_results/
© Copyright 2008