Dixons Carphone saw both profits and sales plunge in the first half of the year, caused by a “tougher” mobile phone market hitting its mobile phone division.

Group profit before tax dropped to £61 million from £154 million the same time last year, with like-for-like sales down 2 percent to £3 billion. Profit in the UK and Ireland plunged 73 per cent to £34 million.

The company’s electrical business showed the most improvement over the period, with like-for-like sales up 7 percent and witnessing a growth in both revenues and market share.

However the mobile division suffered during the period, with Seb James, chief executive, saying:

“As we said in August, the UK postpay mobile phone market is tougher, with a combination of higher handset costs and relatively incremental technology growth continuing to cause customers to hold on to their handsets for longer.

“We recognise that the performance of the mobile division needs addressing, and are taking action to adapt our model in order to cement our place in a changing world.”

Despite the weak figures share in the company rose on Wednesday, currently trading up 6.39 percent at 178.10 (1201GMT).