Dixons Carphone has agreed to sell The Phone House Portugal to Digital Place, a company owned by the shareholders of regional telecoms retailer and wholesaler TLCI. The Phone House Portugal operates 130 stores and for the 13 months to 2 May 2015 reported losses after restructuring costs of GBP 8 million. The UK-based retailer also recognised an impairment of GBP 13 million on the Portuguese operations. The sale is part of Dixons Carphone's strategy to exit poorly performing markets in order to focus on countries where it has a leading position.
Following completion, expected by the end of August, Dixons Carphone said it will receive a small cash consideration. A deferred cash consideration based on profitability will be payable over five years. Further financial details of the sale were not disclosed. Dixons Carphone will continue to provide insurance services to The Phone House Portugal through its Connected World Services division.
