Carphone Warehouse benefits from consumer appetite for smartphones
Carphone Warehouse raised its full year earnings guidance today as it continues to benefit from increased consumer demand for smartphones and tablet computers.
The group said that full year earnings per share were now expected to be 14.5p-15.0p, compared with the previous guidance of 13.5p-14.0p.
Like-for-like sales at CPW Europe fell 1.7% in the fourth quarter compared with the previous year which the group blamed on tough comparisons.
The group, which operates joint ventures with electronics retailer Best Buy in Europe and Virgin Mobile in France, said that connections to mobile phone contracts were 8.8% lower over the same period to 2.6 million as a result of the shift from 18 month to 24 month contracts in the UK from mid-2009 onwards.
In contrast, Best Buy Mobile US increased its connections by 25.9% to 1.8 million in the fourth quarter. The company said that full year profits for Best Buy Mobile US were expected to be towards the top end of guidance at £90 million - £100 million.
Virgin Mobile France secured 161,000 customers, taking net additions for the year to more than 200,000, well ahead of previous guidance of 50,000-100,000 net additions for the year.
Carphone Warehouse said it believed the business was well positioned to capitalise on the proliferation of smartphone technology and the ever-expanding range of tablets coming to the market and that this would help it to rise above the tough economic conditions.
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