Currys profits boosted by major game launches and AI tech

The retailer highlighted surging demand for smaller categories like gaming accessories

Electronics retailer Currys has reported a significant uplift in sales, attributing the positive performance to strong demand for AI technology and new gaming launches, alongside a recovery in its Nordics operations.

The company announced revenues of £4.2 billion for the six months ending November, marking a 4 per cent like-for-like increase compared to the previous year.

Adjusted pre-tax profits more than doubled, reaching £22 million. This financial improvement comes despite what Currys described as a "muted" consumer environment and "unhelpful" cost pressures.

In the UK and Ireland, where Currys operates nearly 300 stores, the computing sector was the strongest performer, driven by AI innovations and new video games.

The retailer also highlighted robust demand for gaming accessories, emerging health and beauty technologies, and a 12 per cent jump in Windows laptop sales.

Mobile products also contributed positively over the half-year, with its iD mobile network brand expanding its share of the wider market.

AI technology and gaming launches have helped drive higher sales for electronics retailer Currys (Currys/PA)

But it reported a dip in the sale of consumer electronics, including TVs and speakers, which the retailer attributed to there being a spike in demand last year during the men’s Euro 2024 football tournament.

Chief executive Alex Baldock said it was “pleasing that strong top-line growth is translating into improved profitability”.

But he added: “In the UK and Ireland, the consumer environment is more muted, and cost headwinds are unhelpful.”

Currys said profits in the UK were being weighed down by increases to the national minimum wage and employer national insurance contributions, from last year’s autumn budget.

Electronics retailer Currys also highlighted robust demand for gaming accessories, emerging health and beauty technologies, and a 12 per cent jump in Windows laptop sales (REUTERS)

These cost increases were not being fully offset by savings it has been striving to make across the business.

Nevertheless, Currys hailed an improved performance for its Nordics arm after launching a turnaround for the struggling business.

Revenues increased by 4 per cent on a like-for-like basis for the region, which has more than 400 stores, both owned and franchised, and earnings grew.

Shares in Currys jumped by about a 10th in early trading on Thursday.