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2007 looking good for Carphone Warehouse

More money from more customers

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Results from Carphone Warehouse show the company taking advantage of a sector which is doing well overall; with both revenues and profits on the rise.

Revenue from retail, for the quarter ended 30 June 2007, was £706m, up 11.7 per cent on the same period last year. Revenue from business and home calls was £345m, up 50 per cent. Retail gross profit was up 2.1 per cent on a like for like basis.

At the end of June mobile connections are up to 2.3 million, rising by nearly 20 per cent since March. In fixed-line the number of customers buying just voice dropped by 91,000, but the number getting broadband and voice bundles remained at 2.7 million.

Almost a million of those broadband customers are now unbundled; 40 per cent of the broadband total.

The effect of the free-laptop offer: a Dell Inspiron given away with broadband orders, isn't expected to be visible until September, but is expected to increase ARPU from the current £21.2.

Carphone Warehouse is taking advantage of the good times to fund the creation of its own backhaul from unbundled exchanges - reducing reliance on BT's infrastructure. ®

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