Carphone Q2 financial results released today show retail revenues to be up 10 per cent to £498 million, retail gross profit up 1.7 per cent and total mobile connections up 12 per cent to 2.6 million.
UK fixed line revenues are down 1 per cent to £343 million. Forecasts for net new broadband customers this year have been adjusted from 400,000 to 200,000. There are currently 2.8 million broadband customers, with 41,000 net adds in the quarter.
Carphone group chief executive officer Charles Dunstone said rising connection volumes had been driven by smartphone and mobile broadband sales; and market share has grown thanks to the broadening of the retailer’s free laptop offer.
Said Dunstone: “From a strategic perspective, the last few months have seen the most important developments in the group’s history. The transaction with Best Buy has crystallised significant value and leaves the business in a strong financial position. We will provide a detailed update on our plans for the new venture in early October.
“Operationally we have made further significant progress in the last three months. The reorganisation of the group into two discrete operating divisions was successfully achieved in time for the completion of the Best Buy transaction. We have also introduced the laptop proposition into the majority of our UK stores, supported by a major training and development initiative for all our sales consultants.
“While the second quarter has started well, with a sharp pick-up in subscription connections on the back of the iPhone 3G launch, we remain understandably cautious about the consumer environment. However, the strategic development of our distribution business and the significant operational improvements we are making in fixed line leave us well placed to trade through these uncertain times and emerge as a stronger and better business on the other side.”
Forty-eight new stores were opened in the quarter while 45 were closed. The total store base at the end of June was 2,414.