Profits to halve at phone retailer

PROFITS at Dixons Carphone are expected to tumble by more than 50pc this week as the rising cost of new mobile phones mean customers hang on to their old handsets longer.

Poor figures will place pressure on the retailer to look at overhauling its mobile phone presence on the High Street where it has more than 700 Carphone Warehouse shops.

In August, the firm was forced to suspend trading as a profit warning sent its shares plummeting by 25pc. Its chief executive, Sebastian James, who earned £1.6m last year, said at the time that customers were upgrading their handsets less frequently as mobile phones become more expensive.

City analysts are preparing to see profits at the retailer, which also owns Currys and PC World, drop by 56pc to £63m on Wednesday.