ICO imposes a penalty of £500,000 on Dixons Carphone Plc’s subsidiary for unauthorised access of customer data.

ICO imposes a penalty of £500,000 on Dixons Carphone Plc’s subsidiary for unauthorised access of customer data.

Information Commissioner's Office (ICO) of the UK has imposed a penalty of £500,000 on DSG Retail Limited, subsidiary of Dixons Carphone Plc (LON: DC.) for unauthorised access of customer data. This was previously reported on June 13thand July 31st, 2018, under the Data Protection Act 1998.

As in the exchange filing made by the group on July 31, 2018, it reported that following a review of their system security, they found some unauthorised access in the past to some of their data and since then they have been putting further security net to shield customer’s information.  The group also reported in the same filing that their investigation was near completion and has identified that approximately 10 million records containing personal data may have been accessed in 2017. The company also said clarified that there was no material proof that some of the data may have left the system, as records do not contain payment card or bank account details and there was no evidence that any fraud has been committed.

In the January 09, 2020 exchange filing, the Chief Executive of Dixons Carphone, Alex Baldock said that; he was extremely sorry for any inconvenience this historic incident may have caused to their customers. He also added that the group has no authenticated evidence of any customer suffering from fraud or loss as a result of the breach.

Further, in the same filing, he commented that the company is not comfortable with some of the ICO’s key observations, which the group has previously contested and continues to disagree with. Also, the group is studying ICO’s observations and recommendations in detail and considering its options to appeal against the order.

Dixons Carphone Plc is a £1.6bn market-cap company, based out in London, UK. The group is a speciality retailer and a leading, multinational consumer electrical goods and mobile retailing and services company. The group’s operating segment is divided into four segments: UK & Ireland, Nordics, Southern Europe and Connected World Services (CWS). The outstanding market capitalisation of the group ranks it among the mid-cap stocks listed and traded on London Stock Exchange and also a constituent of the broader mid-cap gauge of the UK “FTSE 250 Index”.

The announcement made by the company, which came in the late trading hours of the January 09, 2020 session, sent its stocks lower and ended yesterday’s session 0.25% lower at GBX 138.25. However, as on January 10, 2020, its shares traded 2.75 points or 1.99% lower at GBX 135.50, at the time of writing at 09:15 AM GMT.

In the year-over period, its stocks have registered a 52-week high of GBX 166.45 and a 52-week low of GXB 90.0 and at the current traded level, its shares traded approximately 19% off from its 52-week high price level and approximately 51% above its 52-week low price level.

On a YoY basis, its shares have delivered a price return of 12.40%, up approximately 21% in the past three months and traded about 6% higher in a month-over period. However, in the past five trading sessions, its stocks slumped approximately 2.7%, respectively.

However, at the current market price as mentioned above in this piece, its shares traded well below its short-term as well as long-term support levels of 5-day, 10-day, 20-day, 50-day, 100-day and 200-day simple moving averages, which is typically perceived to be an unfavourable trend in the stock.

Recently as on December 12, 2019, the group reported its first-half results for the period ended on October 26, 2019. During the period under consideration, the group's H1FY20 UK & Ireland electrical revenue marginally declined by 1% to £1,979m from £1,997 million reported in the year-over period and International electrical revenue in the same period improved just 1% to £1,904.0m from £1,887m recorded in the same period of the previous financial year, which made the group’s total electrical revenue largely unchanged at £3,883.0m against £3,884m reported in the H1FY19. However, UK & Ireland Mobile revenue in the same period plummeted by 18% to £830.0m from £1,009.0m reported in the corresponding previous period.

On account of the substantial revenue slump in the group's mobile segment, the group's consolidated total revenue from its core operations slumped to £4,713m, which was a 4% decrease on a YoY basis. However, majority of decline across the segment the group operates in has come during the second quarter (Q2) of FY20, led by 2% revenue slump in the UK & Ireland electrical revenue on a like-for-like basis and 10% plunge in the UK & Ireland like-for-like mobile revenue as well.

However, on a statutory basis, the group's loss before interest and tax substantially slumped to £33m against a loss of £423m reported in the H1FY19. The substantial decline in losses at before interest and tax level also minimised basic loss per share to 6.2p against the loss of 40.7p reported in the year-over period.

The chief executive of the group, Alex Baldock commented that, despite a challenging UK electrical market, the group has gained significant market share and strengthened its market leadership as well. However, the group’s international electrical segment continued to report growth with decent margin improvement.

He added that Mobile segment is still facing challenges as expected.

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