Dixons sells off Pixmania

Large turnover, huge losses

French-based Pixmania takes care of
the sales of electronics in fourteen European countries, with a turnover
last fiscal year of 357.5 million pounds (nearly 424 million euro). Its
popularity is mainly found in France, Italy and Spain. Pixmania
currently employs more than 1,200 people.

Despite its decent
turnover, Pixmania weighed heavily on Dixons’ numbers: Its most recent
fiscal year, ending on the 30th of April, showed that Pixmania had to
incur a loss of 31 million pounds (37 million euro). That prompted
Dixons to value the share at zero, causing a write-off of 135 million
pounds (160 million euro). Subsequently Dixons announced a thorough
examination of Pixmania’s future.

Pixmania and ElectroWorld sold off

That
has ultimately led to Pixmania’s sale to Mutares, who already owns
several medium-sized enterprises, among which an office supplies
manufacturer, a bedstead producer and a car parts firm.

To make sure the deal could go through, the British group is paying another 58 million pounds, to further develop the website.

ElectroWorld,
a Turkish subsidiary, is also being sold off. Bimeks, a Turkish
electronics organization, paid 2 million pounds (2.4 million euro) for
the entire company.

Rise in turnover for core markets

These
two deals allow Dixons to focus on its core businesses. The
conglomerate managed a total turnover of 8.24 billion pounds (9.77
billion euro) last fiscal year. However, losses were at 162.9 million
pounds (193 million euro). The company has the largest market share in
Great Britain, Ireland, Scandinavia and Greece.

The first three
months of the current fiscal year (May – July) have pleased Dixons, as
turnover has increased 4 % in Great Britain and Ireland, compared to
last year. Northern Europa even outgrew those home territories, as it
marked an increase of 5 %. Southern Europe failed to follow suit, with a
drop in turnover of 12 %.