Strong contract smartphone sales have boosted Carphone Warehouse’s UK revenue by 2.3% in the 13 weeks ended 1 January. The retailer reported its results for its third quarter today (18 January).
Meanwhile, Carphone Europe’s like-for-like sales growth was 0.7%, reflecting ‘continued strong contract smartphone sales’.
Penetration of smartphones into the prepay category remained ‘relatively modest,’ the retailer said adding that prepay connections were down year-on-year, causing a drop of 7.1% in overall connections.
The company said the performance of its first six Best Buy ‘Big Box’ stores in their launch year has reaffirmed its belief in ‘the substantial opportunity that exists within the consumer electronics market’.
Best Buy UK online successfully launched with ‘strong performance to date’, Carphone added.
Meanwhile, the ‘Wireless World’ store format ‘continued to perform well’. The retailer currently has 73 ‘Wireless World’ stores and said it remains on course to reach its target of 100 by March 2011.
Carphone CEO Roger Taylor said: ‘We’ve delivered another good quarter, we’re again raising our guidance for our profit share from Best Buy Mobile US and we now expect full year earnings per share to be at the top end of the range we gave in November. CPW Europe has continued to perform well in a Christmas quarter where sales are traditionally much more weighted towards prepay handsets, the segment where smartphone penetration is still low, and where there have been high levels of price deflation in basic handsets.
‘Best Buy Mobile US continues its strong momentum, demonstrating its winning formula. The online launch at Best Buy UK has gone well, adding to the strong customer satisfaction with our ‘Big Box’ stores, where our planned roll-out continues. Our other joint venture, Virgin Mobile France, is well on track to deliver growth and results in line with guidance.'