Feeds

Carphone Warehouse considers retailing future

Big yellow boxes slipping into the red

Choosing a cloud hosting partner with confidence

Despite good results from its US expansion, and turning a French loss into a profit, annual figures from Carphone Warehouse show its ambitious plan to change European retailing is consuming a good deal more cash than anticipated.

Losses from joint operation Best Buy UK topped £62m in the last 12 months, more than three times that of the previous year – and £12m more than the company had predicted.

It's a good thing then that Carphone Warehouse Europe turned in a profit of £134.6m (up 18 per cent), and that the group also managed to double its profits from America, with Best Buy Mobile bringing in £97.9m in profit.

Revenues at Best Buy Europe were £3.57bn, up just 1.2 per cent on the year, producing EBITDA of £257.4m, compared to £231.7 last year.

Best Buy Europe, the joint deal to bring the US retailer's big yellow stores across the pond, spent more than £62m in the last 12 months – rather more than the £50m or so the company had predicted. But Carphone Warehouse offset that loss with huge gains in the US, where Best Buy Mobile (taking UK mobile phone sales techniques to the USA) has managed to grab 5 per cent of the US market (seven million subscribers).

Virgin Mobile France – of which Carphone Warehouse owns almost half – also had a good year, turning last year's loss of more than £20m into a similarly-sized profit. That's apparently down to "creative marketing", which increased the customer base by 200,000 or so.

Things aren't so rosy in the UK, where the company expects to shed as much as 5 per cent of its mobile customers over the next year thanks to longer contracts (24 rather than 18 months) and its lack of prepay portfolio. UK contracts are doing OK though, with 90 per cent of new contractees taking up smartphones.

The company remains adamant that as tablets erode laptop and notebook computers, its stores will gain – users like to see and touch rather than basing their decision on a web-hosted photograph. But despite this upbeat prediction, Carphone Warehouse admits it is "in the process of evaluating the next steps in our multi-format/multi-channel consumer electronics strategy". ®

Secure remote control for conventional and virtual desktops

More from The Register

next story
YOU are the threat: True confessions of real-life sysadmins
Who will save the systems from the men and women who save the systems from you?
Download alert: Nearly ALL top 100 Android, iOS paid apps hacked
Attack of the Clones? Yeah, but much, much scarier – report
Broadband sellers in the UK are UP TO no good, says Which?
Speedy network claims only apply to 10% of customers
Virgin Media struck dumb by NATIONWIDE packet loss balls-up
Turning it off and on again fixes glitch 12 HOURS LATER
Ofcom snatches 700MHz off digital telly, hands it to mobile data providers
Hungry mobe'n'slab-waving Blighty swallows spectrum
Fujitsu CTO: We'll be 3D-printing tech execs in 15 years
Fleshy techie disses network neutrality, helmet-less motorcyclists
Facebook, working on Facebook at Work, works on Facebook. At Work
You don't want your cat or drunk pics at the office
prev story

Whitepapers

Choosing cloud Backup services
Demystify how you can address your data protection needs in your small- to medium-sized business and select the best online backup service to meet your needs.
A strategic approach to identity relationship management
ForgeRock commissioned Forrester to evaluate companies’ IAM practices and requirements when it comes to customer-facing scenarios versus employee-facing ones.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
Getting ahead of the compliance curve
Learn about new services that make it easy to discover and manage certificates across the enterprise and how to get ahead of the compliance curve.
Saudi Petroleum chooses Tegile storage solution
A storage solution that addresses company growth and performance for business-critical applications of caseware archive and search along with other key operational systems.