Currys owner scores World Cup boost

DSG International - soon to change its name to Dixons Retail - reported back on an "encouraging start" to its financial year thanks to the robust performance from the UK & Ireland arm.

Its hike in like-for-like sales across the division drove a three per cent lift in group-wide comparable revenues in the 12 weeks to July 24.

DSG said its UK business was buoyed by an exclusive deal to market the iPad, as well as promotions surrounding the World Cup.

John Browett, group chief executive of DSG, said: "This is an encouraging start to the year, especially given the challenging market conditions."

But he added the group remained "cautious about the economic outlook".

DSG's first quarter performance also comes against comparisons with a year earlier, when UK & Ireland sales plunged 14 per cent.

Performance was helped by DSG's move to secure a 60-day exclusivity partnership with Apple after the UK launch of the iPad on May 28.

It also focused heavily on the World Cup football tournament, with promotions including a 10 cash back deal for every goal England scored when customers bought a TV for more than 599.

DSG said its UK & Ireland business stole greater market share during the three months, despite competition from new market entrant Best Buy - the US consumer electronics giant that teamed up with Carphone Warehouse to launch on these shores.

The group is fighting back by rolling out its own out-of-town megastores, combining Currys and PC World outlets.

It is also refurbishing its store estate and said today the programme was "making rapid progress", with 43 completed in the first quarter, including eight megastores.

DSG is more than two-thirds of the way through a three-year revival plan, which will see it reduce its UK shop estate to around 500 to concentrate on larger formats.

It said at the full-year stage it was seeing a 50 per cent surge in profits in combined stores opened under its transformational plan.

But today's first quarter surge was not seen right across the business, with sales in the Nordics remaining flat and DSG posting a 1% fall in its other international markets, including Greece, Italy, Spain and Turkey.

Mr Browett said its overseas businesses were trading amid "varied market conditions".

DSG has 650 shops in the UK out of a total 1,275 globally.