Dixons profits hit by Vista flop

DSG International, the owner of Currys, Dixons, Techguys and PC World, has announced disappointing profits as earnings were slashed by £20m due to poor sales of Vista Related goods.

Sales went up by more than 13% while pretax profit fell by nearly 60%, bringing the EPS to 2p only, down from 11p.

DSG singled out the fact that they had to lower the price of Microsoft's Windows Vista in order to boost unexpectedly sluggish sales.

Although DSG did not mention how many copies of Vista were sold, the Financial Director, Kevin O'Byrne, said that estimates were missed by as much as 50,000 copies worth at least £3m based on the retail price.

There were good news elsewhere as customers flocked to Digital SLR cameras, Flat screen televisions, iPods and game consoles.

DSG stocks are at their lowest for five years, valuing the company at roughly £2.27 bn.