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CPW Europe raises profits target as revenues rise


Electricals and mobile phone retailer Carphone Warehouse (CPW) Europe has posted a 0.7 per cent increase in like-for-like (LFL) revenue in third quarter results released today.

LFL revenue in UK operations was up 2.3 per cent during Q3, with the company keen to reaffirm its confidence in the potential of its Best Buy partnership in Britain.

Guidance on Best Buy Europe’s full-year profit share from Best Buy Mobile US has also been raised to £90 million-£100 million from its previous target of between £85 million and £95 million.

Roger Taylor, CEO of CPW Group, said: “We’ve delivered another good quarter, we’re again raising our guidance for our profit share from Best Buy Mobile US and we now expect full year earnings per share to be at the top end of the range we gave in November.

“CPW Europe has continued to perform well in a Christmas quarter where sales are traditionally much more weighted towards prepay handsets, the segment where smartphone penetration is still low, and where there have been high levels of price deflation in basic handsets.”

Best Buy UK is a joint venture between the innovative US retailer and CPW, which saw standalone stores and an online service branded launch in Britain last year.

There have been concerns at the speed of expansion of the Best Buy branded stores in the UK with only six opened last year, and last month a Best Buy spokesman reassured the public that store openings were still planned for 2011 despite a proposed outlet in Gateshead being cancelled.

Taylor continued: “The online launch at Best Buy UK has gone well, adding to the strong customer satisfaction with our ‘Big Box’ stores, where our planned roll-out continues.”

In other business, Best Buy Mobile US increased its connections during the third quarter by 33.6 per cent and another joint venture with Virgin Mobile in France has seen customers grow by 74,000 in that country during the period.

Full-year earnings-per-share for CPW are now expected to be at the top of the previously stated range of between 134.5p and 14p.

Published on Tuesday 18 January by Editorial Assistant

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