Earnings: A Merry Christmas For UK’s Carphone Warehouse; Revenues Up 13 Percent
Despite the gloomy economy, the UK’s Carphone Warehouse said today in its third-quarter earnings report that its retail revenues had climbed 13 percent to £1.01 billion ($1.47 billion) compared to the same period the previous year, thanks in part to strong sales in the UK pre-pay market over the holiday period. Europe’s largest independent mobile-phone retailer said, however, that it expected “weaker trading conditions” to continue through the year, adding that it is focused on controlling costs and generating cash.
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— Best Buy Europe: Overall, like-for-like retail growth climbed 6.5 percent at the unit, in which U.S. big box retailer Best Buy has a 50 percent stake. In the UK, like-for-like revenue growth was 8.3 percent. Mobile connections climbed 3 percent to 3.7 million. The company estimates they took a 30 percent of the market share over the holiday period in pre-pay handsets. Subscription connections were up 3 percent to 1.3 million. Carphone Warehouse blamed the slowdown from the first half on a weak market for mid-tier handsets. High tier subscription connections and mobile broadband sales, meanwhile, continued to be strong.
— TalkTalk Group: Carphone’s ISP saw revenues decline 2 percent to £347 million ($507 million). Residential broadband revenues fell 2 percent to £275 million ($402 million), though this was partially offset as average revenue per user (ARPU), was up 5 percent year-on-year to £23.13 ($34). At the end of December 2008, TalkTalk’s broadband base was 2.7 million, with 36,000 added during the quarter. The company noted that TalkTalk had actually added 73,000 customers, but that its AOL (NYSE: TWX) Broadband base shrunk by 37,000 disconnections. CW said they expected the broadband market to continue to be “subdued,” but that TalkTalk was “well positioned at the value end of the market,” to capture “cost-conscious” customers.
Posted In: Money, Earnings, Companies, Countries, Europe, UK, carphone warehouse
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