Carphone Warehouse revs up H1 profit
The Carphone Warehouse reported a 38.3 per cent increase in pre-tax profits for the first six months of the year, boosted by a "buoyant mobile market and the success of [its] fixed line services".
Turnover for the six months to September end increased 25 per cent on last year from £825.5m to £1.03bn, while pre-tax profit jumped from £20.3m to £28.1m.
Part of its success is down the to the "wealth of new products and attractive offers for customers", which The Carphone Warehouse suggests makes flogging mobile phones a relatively simple task.
As the mobile markets across Europe become increasingly fragmented with more operators entering the sector, the firm is confident that there's even greater need for its brand of "impartial advice" to help customers steer their way through the maze of different products and bundles on offer.
Upshot, it's continuing to invest in opening new stores. With 115 new stores opened in the last six months, its total number of outlets now stands at 1,329.
These days, The Carphone Warehouse isn't just about flogging mobile phones. On Monday it stepped up the pressure on BT with a new bundled voice and broadband offer for under £20 a month.
This builds on the launch of its residential TalkTalk fixed line phone service eighteen months ago, which it markets as a "clear alternative to BT". During that time it has signed up almost 650,000 customers and in the UK the business reported a profit - after all costs - in August and September
And in its fixed-line business market, its telco Opal has also "continued to perform well". Although this B2B sector is still highly competitive, the company remains upbeat about the future performance of the business. ®