Carphone Warehouse reports first-half revenue growth

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The retailer said like-for-like sales grew 8.3 per cent in the first half of 2013, despite a slow Q2 as customers held out for the arrival of 4G 

Carphone Warehouse Group (CPW) has reported a 8.3 per cent growth in like-for-like revenue in the first half of 2013, which the company says is thanks in part to strong growth in postpay sales in the UK.

CPW revenues for the 26 weeks to September 28 were £1,566 million, up from £1,480 million in 2012.

It said that its performance in its first quarter (April, May and June) was particularly strong, with like-for-like revenue growth of 13.2 per cent.

However its second quarter (July, August, September) was affected by customers holding out for the launch of 4G and new products at the end of the period.

The retailer said the UK prepay market continued to decline over the two quarters, by an estimated 20 to 30 per cent. However it gained market share in prepay and said it will continue to try to drive smartphone penetration in this segment.

Overall connections were flat in its first half of the year (April – September), CPW said.

CEO Andrew Harrison said: “Carphone Warehouse has delivered good like-for-like growth for the half and for the fifth successive quarter. This is a strong performance given the reduced marketplace activity ahead of the wider launch of 4G across Europe and the continued double-digit decline of the prepay market. We have increased market share and grown EBIT year-on-year.

“We invested in our brand and our channels during the period to reposition Carphone Warehouse and make our role within mobile retailing clearer than ever. This investment includes a new tablet-based sales tool called ‘Pin Point’ which simplifies our sales process, particularly relevant with the widespread arrival of 4G.

“We continue to develop our partnerships with other retailers as we look to gain scale in Europe. We have set up and launched our new Connected World Services division, forging promising new global relationships, and creating our new ‘honeyBee’ platform with Accenture.

“Looking ahead, we reiterate our full year guidance. We are in excellent operational shape to take advantage of the key Christmas trading period and are encouraged by the growth of 4G as it starts to arrive across all the major networks.”

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