Dixons Carphone said pre-tax profit soared 30% in its first half since its merger. Here’s what the analysts thought about the results.

Dixons and Carphone Warehouse merged earlier this year to form Dixon Carphone

“Two events have significantly contributed to today’s impressive results – namely strong demand from Black Friday and Cyber Monday, which gained substantial traction in the UK this year.

“Secondly, the demise of rival Phones 4U, which collapsed in September, has given its phone division a substantial boost after a tough start to the year.

“However, we shouldn’t dismiss the great work the retailer is doing in a somewhat challenging environment. With like-for-like sales up 6% in the UK and Ireland, Dixons Carphone is clearly delivering on its promise of being the connected retailer in the connected world.

“Enhancing its multi-channel capabilities, sharper pricing and a shopper-led format redesign have been critical to its achievements so far.” – Simon Johnstone, Kantar Retail

“Greater focus should be placed on Q2’s excellent trading performance and the outlook for the core business, synergy potential and developments within Connected World Services (CWS).

“An excellent second quarter gives confidence that the core business did not just benefit from UK capacity withdrawal.

“Pricing pressures in Nordics are easing, giving us some confidence that the market is stabilising and EBIT growth can be delivered longer term despite current FX pressures.

“CWS could also offer upside longer term – it already generates above average EBIT margins.” – Alistair Davies, Investec

“Dixons Carphone seemed to spotlight the Netherlands and Germany today, calling them “challenging”, and saying it instigated “review and restructure” plans for those operations.

“However, the group also owns Phone House in Spain and Portugal, and has branches in France. These are all countries where consumer discretionary and non-discretionary margins continue to be squeezed.

“I think Dixons Carphone will at some point need to articulate a more detailed strategy about Europe to keep shareholders on board, after a 25% rise of the stock off October lows.

“Further disposals in Europe, like the shrewd one in the sale of Electro World in Sweden during the summer, may make sense and would certainly be applauded by the market.” – Ken Odeluga, City Index

“The balance sheet is solid [and] on our calculations, Dixons Carphone still has plenty of upside given the significant amount of synergy benefits (£100m+), improved store trading margins, benefit from Phones4U closure and the opportunities in CWS.” -  Mike Dennis, Cantor Fitzgerald

“Today’s interims from Dixons Carphone show strong top-line sales growth, and strong profits growth as well, although the latter is “only” in line with expectations at underlying PBT of £78m (up 30%).

“Despite “a barnstorming performance” in the UK, with like-for-like sales growth of 11% in Q2, life was tougher in Europe.” – Nick Bubb, independent analyst

Dixons Carphone profits up 30% as merger integration exceeds expectations