THE RETAIL BULLETIN - The home of retail news
HOME
RETAIL NEWS
RETAIL EVENTS
Fashion
Department Stores
Shopping Centres & Retail Parks
Home & DIY
Electricals
Health & Beauty
General Merchandise
Entertainment
Sports & Leisure
Retail Solutions
Food & Drink
RETAIL INSIGHTS
RETAIL SOLUTIONS
ABOUT US
CONTACT US
SUBSCRIBE FOR FREE
No surprises from Carphone Warehouse Group plc
carphone warehouse,roger taylor

CPW Europe Q1 like-for-like sales down 2.0%, affected by the continued weak prepay market, as anticipated.

CITY & CORPORATE

No surprises from Carphone Warehouse Group plc

In its Interim Management Statement for the quarter ended 30 June 2012, Carphone Warehouse Group plc have said its results are In line with guidance given in June with no change to forecasts
There has been encouraging UK postpay growth and Virgin Mobile France has delivered strong revenue growth of 13.0% at constant currency; postpay net adds of 57,000.

Roger Taylor, CEO, said, "We reiterate the guidance we provided in June when we presented our final results for 2011-12 and there have been no significant changes since then.
 
"At that time we said that CPW Europe was ideally placed to service the complex postpay market, and this remains the case. Our recent offers and new initiatives have already seen positive results across the business, and we are maintaining excellent customer service scores. As anticipated, the prepay market continues to be weak, but we remain confident in our opportunity to reinvigorate this market by driving smartphone penetration into this segment, particularly in the second half.
 
"Virgin Mobile France continues to perform well in a competitive market with strong revenue growth and growth in its postpay base as we continue to focus on quality customers."
 
CPW Europe (JV with Best Buy Co., Inc.)
As previously highlighted, Q1 was affected by the continuing weak prepay market, caused primarily by a lack of attractively priced smartphone products in this segment. This meant total connections were down 17.8% and like-for-like sales declined by 2.0%. However, successful smartphone promotions have helped to drive positive like-for-like postpay sales growth in our key UK market. This was achieved by launching our weekly 'Smart Deals', designed to provide the best value in the market in the all important postpay smartphone segment. Although the prepay market remains weak, we have reason to be more optimistic about the increasing availability of lower priced prepay smartphones as the year progresses.
 
Virgin Mobile France (JV with Virgin Group)
Virgin Mobile France, France's leading MVNO, had a good quarter with year-on-year revenue growth of 13.0% from ?108m to ?122m, boosted by termination revenue and postpay growth. As at 30 June 2012 the customer base was 1,925,000, with postpay net adds of 57,000 during the quarter and total net adds of 8,000.
 
The business now has over 150,000 customers on the Full MVNO platform, bringing significant benefits of increased flexibility and reduced costs, as well as enabling us to enhance our customer proposition.
 
Outlook
At our results presentation in June, we said that in 2012-13 we expected the consumer environment in Europe to remain challenging along with the continued effect of regulation and competition in the mobile market and we reiterate the guidance set out at that time. However, we see some exciting opportunities and remain confident in our strategic positioning and operational execution. We are making progress with the reorganisation of CPW Europe and will also continue to explore opportunities to gain further scale in a number of our mainland European markets.

Email this article to a friend

You need to be logged in to use this feature.

Please log in here

Subscribe For Retail News

RETAIL EVENTS

Retail Human Resources Summit
Retail Human Resources Summit
Wednesday 3 October 2018
The Cavendish Conference Centre, London W1
The 10th HR Summit 2018, The Cavendish Conference Centre, London W1, 3rd October 2018
The Retail Design Summit 2018
The Retail Design Summit 2018
14 November 2018
The Cavendish Conference Centre
The Retail Design Summit 2018
Omnichannel Futures Conference 2019
Omnichannel Futures Conference 2019
6 February 2019
Cavendish Conference Centre, London WG1 9DT
A truly omnichannel offering requires an understanding of customer behaviour across all shopping channels and how this should impact your overall business strategy
Customer Engagement Conference 2019
Customer Engagement Conference 2019
5 June 2019
Cavendish Conference Centre, London W1
The 10th Annual Retail Customer Engagement Summit
National Minimum Wage Breakfast Briefing
National Minimum Wage Breakfast Briefing
20 September 2018
6th Floor 1, St. Martin's Le Grand London, EC1A 4AS
National Minimum Wage Breakfast Briefing