UK electronics retailer Dixons Carphone has reported its profit fell by nearly half over the last six months – from £154 million to £61 million.

Yet revenue rose by £200 million to £4.9 billion this year.

The main cause of the decline was a drop in sales of smartphones with the company saying consumers were keeping them longer. Handsets sales slipped 3 per cent, with the company’s total revenue growth occurring in categories with slimmer margins.

“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 and some to choose a SIMO contract in the meantime,”said CEO Seb James in an earnings statement.

“In addition, the later launch of the iPhone X pushed some sales into the second half of our financial year. 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.

“We… believe we can, over time, reduce the complexity and capital intensity of our mobile business model, and increase the simplicity and profitability of what we do.”