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Carphone Q1 meets forecasts, demerger on track

Carphone Q1 meets forecasts, demerger on track
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First Published: Thu, Jul 23 2009. 12 18 PM IST
Updated: Thu, Jul 23 2009. 12 18 PM IST
London: British telecoms and retail group Carphone Warehouse met or just beat first-quarter revenue and customer growth forecasts on Thursday and said both its plan to split in two and its full-year targets were on track.
Carphone, which plans to separate its TalkTalk telecoms business from its Best Buy Europe retail venture by next July, said TalkTalk revenue fell 2% year-on-year to £340 million ($557 million) in the three months ended June.
It added a net 47,000 new broadband customers, beating analysts’ average forecast of 37,000 in a company poll.
Revenue at Best Buy Europe, Carphone’s joint venture with US electricals retailer Best Buy, were £773 million, up 6% year-on-year, or up 0.7% on a constant currency basis.
“Both our businesses have continued to make good progress, despite the economic climate and we are able to reiterate all the financial guidance we have given for the full year,” chief executive Charles Dunstone said in a statement.
“In parallel, work progresses on schedule towards our proposed demerger,” he said, adding the group now had banking facilities in place for Best Buy Europe.
Carphone is Europe’s biggest mobile phone retailer with over 2,400 stores across 9 countries. Best Buy Europe plans to roll out a new chain of electrical goods stores across Europe, starting in Britain UK next year.
Carphone is also Britain’s biggest provider of residential broadband after its £236 million purchase of Tiscali UK, which completed earlier this month.
Carphone shares plunged by around three quarters in value last year as the economy slid into recession, but the stock has since bounced back on hopes of a recovery. The shares closed at 166 pence on Wednesday, valuing the firm at £1.5 billion.
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First Published: Thu, Jul 23 2009. 12 18 PM IST