British electronics group Dixons will sell off its online branch Pixmania to the German group Mutares. Despite the sale, Dixons still has to contribute 58 million pounds (69 million euro) towards the upkeep of the loss-generating website. On top of this sale, all Turkish activities are being sold off as well.
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
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
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 %.