Companiesandmarkets.com

Carphone Warehouse posts a 10.6% increase in first-quarter sales

Press Release   •   Jul 24, 2013 10:29 BST

Carphone Warehouse, Europe's biggest independent mobile phone retailer, today posted a 10.6 per cent increase in first-quarter sales, despite a 15.1 percent revenue decline in its joint venture Virgin Mobile France.

The group, which agreed in April to take back full control of its European retail business, said it had enjoyed strong sales of contract services in Britain in the three months to June 29.

In its interim management statement for the quarter ended June 29, the telecommunications retailer said its like-for-like sales growth in the UK was particularly strong with year-on-year growth in the post pay category and a continued shift towards high-end smartphones driving higher revenue per connection.

Total connections were up 6 percent in Europe and 8.1 percent excluding France, driven by strong UK post pay connections growth.

Revenue of Virgin Mobile France, Carphone Warehouse's 46 percent share owned joint venture with Virgin Group, declined 15.1 percent at constant currency, reflecting market price deflation and a lower customer base.

Chief Executive Roger Taylor said the firm had seen an increasing number of customers opt for longer contracts as that enabled them to buy phones such as Apple's iPhone and smartphones from Samsung.

"We have enjoyed a good first quarter with strong like-for-like revenue and connections growth, and we are reiterating the guidance we gave when we presented our final results for 2012-13 in late June," said Taylor.

"We believe the group is well positioned following the strategic moves we have made and we are focused on replicating the UK's operational execution across Europe and bringing our Connected World capabilities to other business partners, including our recently announced partnerships with Media Markt/Saturn and Metro Group."

For more information on Carphone Warehouse, see the latest research: Carphone Warehouse

Follow us on Twitter @CandMResearch

Companiesandmarkets.com issues news updates and report summaries covering all major industries and sectors. The service provides additional client monitoring and timely alerts to breaking industry and sector news leading the day's business headlines. News articles, written by our staff, contain additional analyst insight, providing value added insight for our readers. News updates and real-time alerts on newly-released market reports are also available from our Facebook page, Twitter feed @CandMResearch and RSS links. We also welcome inquiries from business journalists and the news media.