10/14/2008 3:54:00 PM
Carphone connections up 9 percent from last year
Carphone Warehouse’s financial results for the quarter ending September 2008 show decent growth despite the difficult economic climate.
Carphone increased the number of mobile connections by 9% compared to the same period last year. Total number of connections during the quarter was 3.1 million, of which 1.3 million were contracts.
Mobile broadband was outlined by the company as a key driver behind the increased number of connections. The iPhone also allowed Carphone to increased market share.
Carphone opened 16 new stores during the quarter in an effort to increase market share, bringin the total number of shops to 2,430.
The company also revealed it was putting aside £90 million for the launch for the big box, Best Buy branded consumer electronics stores. The focus will primarily be on larger stores of 30,000 square feet or more and first stores in the UK will open next year.
The aim is to double Best Buy’s European revenues and operating profit for between March 2008 and March 2013. Start-up costs are estimated to be roughly £20 million in the current financial year, ending March 2009 and £30 million in the following year.
Fixed-line broadband during the quarter saw slower growth. Carphone’s net additions for the quarter was only added 41,000. ‘Market growth has continued its slowing trend and we have been focusing on retention and improving our proposition rather than aggressive customer recruitment,’ the company commented in their financial results.
CEO, Charles Dunstone remained cautious of the immediate future: ‘The immediate consumer outlook remains very uncertain. However, in the retail business, we have secured our best ever Christmas line-up and will work hard to increase our share of customer spending. In telecoms, we are well positioned as a value player with a highly efficient network, providing good visibility of cash flows in the coming years. Our robust balance sheet and the quality of our assets leave us well placed to ride out the downturn and emerge in an even stronger position on the other side.’