Tesco’s annual results, published today (Tuesday) revealed record profit for the supermarket giant in spite of fears a global economic slowdown, with mobile sales singled out as one of the drivers of growth.
In a statement the supermarket giant said its telecoms business made ‘very good progress' with growth across mobile and fixed line sales.
Tesco Mobile, its MVNO with O2, moved from a ‘small loss’ in 2006/07 to ‘an encouraging level of profitability’ with sales up by 39% and a growth in customer base of a quarter of a million.
Tesco boss Sir Terry Leahy singled out mobile as a key area of growth. He said: ‘We’re making good profits now in the mobile business, such as the whole Telecoms Group is profitable.
‘And I’ve been very pleased with the growth that we’ve seen in market share of mobile,’ he added.
Its 2007/2008 end of year results to 23 February revealed that group sales were up by 11% to £51.8bn, while group trading profit grew by the same amount to £2.7bn.
Despite the record profit, the level of growth was Tesco’s lowest in the last eight years and its sales from non-food items slowed from 10% in the first half of the year to 8% in the second half.