Best Buy Europe has posted a £29 million loss for the six months ending September 30th.
Operating losses are expected to be between £50m and £55m for the full year, it was revealed as part of joint owner The Carphone Warehouse’s interim results today.
Despite what look like stark figures, the firm said the loss reflected investment in infrastructure and IT, together with launch costs for the first stores and online platform.
The figures are released as Best Buy Europe opens its sixth UK store in Derby today. It launched a online store for the UK yesterday.
Meanwhile, the Carphone Warehouse itself did well out of the rising interest in smart phones during the period, with a year-on-year increase in group headline EPS from 1.5p to 5.5p, apparently.
Roger Taylor, CEO of Carphone Warehouse said: “We have delivered a strong first half with good performances across all our businesses, and we are raising our guidance for the full year. A key growth driver is the increasing popularity of smartphones and customers’ growing interest in the ‘Connected World’, coupled with their recognition of our heritage of expertise and independent advice in explaining complex technologies.
“Customer response to our first five Best Buy branded ‘Big Box’ stores has been overwhelmingly positive, with the sixth store opening in Derby today. With yesterday’s launch of its transactional website, Best Buy gains national reach and is able to compete as a truly multi-channel retailer.
“Reflecting our confidence in the future and our strong cash position, we wish to introduce a progressive dividend policy, commencing with a final dividend for the current financial year.”