Carphone gets a boost from iPhone rush
SHARES in Carphone Warehouse lifted yesterday after the company said that first quarter trading was in-line with expectations, and that revenues in its retail business had been boosted by the popularity of the iPhone.
Europe’s biggest mobile phone retailer said that revenue at Best Buy Europe – its joint venture with US firm Best Buy – were £773m, up 0.7 per cent year-on-year on a constant current basis and slightly above analyst expectations.
Chief executive Charles Dunstone attributed the resilience to the “massive effect” of the iPhone. The hype surrounding the device has also seen sales of other smartphones jump, he said.
“Both our businesses have continued to make good progress, despite the economic climate and we are able to reiterate the financial guidance we have given for the full-year,” said Dunstone.
Revenues at Carphone’s telecoms business, TalkTalk, were in-line with expectations at £340m, a drop of two per cent year-on-year, reflecting declines in residential voice-only and dial-up customers.
But it said that it added 47,000 new broadband customers, bringing its total broadband base to 2.85m, not including the customer base it acquired with the £236m purchase of Tiscali UK earlier this month.
The group had previously forecast earnings per share growth of 10 per cent, including the Tiscali deal, and the generation of over £150m in free cash flow.
The Carphone boss also signaled that the demerger of Best Buy Europe and TalkTalk is on track for March 2010, with a £350m banking facility now in place for Best Buy.