Carphone Warehouse UK like-for-like sales up 16% in Q3
Mobile phone retailer Carphone Warehouse has reported a 16% rise in UK like-for-like revenue in its third quarter driven by strong momentum in the sales of tablet computers and postpay.
The group’s total like-for-like revenue rose 7.8% and total connections were up 3.9% for the quarter year-on-year.
During the quarter ending 31 December, sales in the UK were boosted by “extremely compelling” offers in postpay ahead of Christmas. The group also made progress in establishing CPW as a shopping destination for tablets through keen pricing and bundle offers. This led to growth in market share with non-cellular accounting for around 9% of retail revenue in the period.
The group said there was an improvement in the overall UK prepay market in the quarter, but it remained weak and was down by an estimated 15%. However, CPW said it outperformed the market in this category and gained market share.
Never Miss a Retail Update!In Europe, whilst overall connections were down, like-for-like revenue was broadly flat although there was a good performance from some of the group’s largest European markets. Trading in France, however, remained tough.
CPW’s Virgin Mobile France joint venture posted revenue growth of 9.9% at constant currency despite a postpay customer base decline of 17,000 during the quarter.
The group reiterated its full year profit guidance, with a narrowed Headline EBIT range of £135 million to £145 million.
Roger Taylor, CEO, said: “I am delighted with the performance of our UK business over the Christmas quarter. This reflects extremely well on our team and on our policy of investing in our proposition to give our customers compelling offers on smartphones and tablets, accepting some margin investment.
“Mainland Europe like-for-like revenue was broadly flat, with trading being particularly challenging in France, and this, combined with the margin investment in the UK, means that we will not be changing our full year earnings guidance.”
He added: “The overall economic and mobile industry backdrop has not altered, but we remain well-placed to benefit from an exciting range of smartphones and tablets. The reorganisation of our business has enabled improved focus and operational execution, helping to achieve market share gains with strong like-for-like and top-line performance.”
