European like for like sales down by 1.7 percent due to a 8.8 per cent drop in connections during Q4
Carphone Warehouse Europe says its like for like sales fell by 1.7 per cent in the fourth quarter of last year due in part to a drop in contract connections.
Total contract connections fell by 8.8 per cent to 2.6 million compared year to year as more people moved to 24 month contracts, the retailer said.
Despite the drops Carphone Warehouse Group chief executive Roger Taylor said he expected the European branch of the group to still deliver between 15 and 20 per cent EBIT (earnings before interest and tax) growth for the full year.
Taylor (pictured) also said sales growth would also be up, although only slightly to 0.9 per cent. Connections he said would fall by 5.2 per cent for the full year period.
Taylor said: “Despite the tough economic environment, CPW Europe has performed well, with an encouraging improvement in performance by some of its operations outside the UK, and is expected to deliver full year profits in line with previous guidance.
“We believe we are well positioned to continue to capitalise on the rapid development and proliferation of smartphones and the ever-expanding range of tablets coming to the market, despite the uncertainty around the economic environment.”
There was good news for the group from across both the Atlantic and the Channel, with Best Buy Mobile US and the Carphone owned Virgin Mobile France producing strong results for the quarter.
Best Buy Mobile US saw connections grow by 25.9 per cent to 1.8 million during the period and its full year revenue is now predicted to reach between £90 and £100 million.
Virgin Mobile France meanwhile added 161,000 new net customer additions taking its total net additions to the year to over 200,000.