Carphone Warehouse earnings jump ahead of Dixons merger

Reuters - UK Focus

LONDON, June 26 (Reuters) - Carphone Warehouse (LSE: CPW.L - news) , Europe's biggest independent mobile phone retailer, met forecasts with a 59 percent rise in annual earnings as it prepares to merge with Dixons Retail (Other OTC: DSITF - news) .

Last month Carphone agreed an all-share merger with Dixons, Europe's No. 2 electricals retailer, with the two firms seeking to capitalise on an increasing convergence of smartphones and consumer electronics in people's lives.

Carphone said on Thursday it made headline earnings per share of 18.4 pence for the year to March 29.

That compares to company guidance of 17-20 pence and 11.6 pence made in the 2012-13 year.

Carphone's main CPW business made pro-forma earnings before interest and tax (EBIT) of 151 million pounds versus guidance of 145-155 million pounds.

The group, which said the merger was progressing in line with the anticipated timetable, is paying a final dividend of 4 pence, making 6 pence for the year, up 20 percent. (Reporting by James Davey; editing by Kate Holton)