Carphone Warehouse poised for FTSE relegation

Carphone Warehouse poised for FTSE relegation

 Carphone Warehouse looks set to fall out of the FTSE100, in what could be a symbolic blow to how the company is perceived in the City.

The retailer’s share price dropped to as low as £1.85 in June this year – its lowest level since 2005.

Carphone has had a tough time through the declining mobile market, but has now split the company into a retail business consisting of the Best Buy plans as well as the existing 800 Carphone stores, and there is a separate telecom division.

The share price has also been affected by competition in the fixed-line broadband market, which has resulted in CEO Charles Dunstone warning that it had to re-evaluate its targets.

The launch of TalkTalk and free broadband was the major catalyst that propelled Carphone into the FTSE100 in May 2006.

A spokesman for Carphone is reported to have said: ‘It would be disappointing, but it doesn’t make any difference to how the business is run.’

Written by Mobile Today
Mobile Today

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