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UPDATE 1-Dixons Carphone warns on profit on tough UK mobile market

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LONDON, Aug 24 (Reuters) - Britain's Dixons Carphone Plc downgraded expectations for full-year profit on Thursday, reflecting tougher conditions in the mobile market as customers hold on to handsets for longer and currency fluctuations made new devices more expensive.

The retailer said headline pretax profit for the year was expected to be in range of 360 million pounds to 440 million pounds ($460-562 million). Analysts had on average forecast 495 million pounds, according to Thomson Reuters data.

The company said it was continuing to trade well in its electricals retailing business in Britain, the Nordics and Greece, with group like-for-like sales up 6 percent in the 13 weeks to July 29, its first quarter.

"In all of these markets we have seen growth in revenues, market share and profitability with overall product margins remaining flat in electricals," said Chief Executive Seb James.

"However, over the last few months we have seen a more challenging UK postpay mobile phone market."

He said it was too soon to say whether upcoming handset launches would reverse the trend of people holding onto their phones for longer, and it was therefore prudent to plan on the basis that demand will not correct itself this year.

($1 = 0.7825 pounds) (Reporting by Paul Sandle; editing by Kate Holton)