Leadership

Carphone Warehouse raises profit forecast on strong first-half

27.11.2009
Technology retailer Carphone Warehouse has raised its full-year earnings forecast following a strong half-year progress with profitability improving in both its TalkTalk group and Best Buy Europe group.

With first-half revenues rising by 13pc to £789m and an 88pc rise in pre-tax profits to £75m, Carphone Warehouse raised its full-year earnings forecast to between 14 and 15 pence. This is compared with analysts’ average estimate of 13.7 pence.

“Both TalkTalk Group and Best Buy Europe have traded well in the first half of the financial year. Each business has delivered a significant year-on-year improvement in operating free cash flow, with headline EPS at the top end of market expectations. As a result, we are raising guidance for the full year to March 2010,” said Carphone Warehouse CEO Charles Dunstone.

The group also said its plan to split its TalkTalk business into two separately listed businesses was well on track for March 2010. Following the demerger, TalkTalk and Carphone Warehouse will trade as two separate firms on the London Stock Exchange.

Dunstone also said customer growth at Carphone Warehouse’sTalkTalk Group is ahead of expectations: “Excluding Tiscali, we added 124,000 net new customers in the first half, and we expect continued strong customer growth in the second half. TalkTalk,” he said.

“Our Tiscali UK acquisition in early July has cemented our position as a leading player in the UK telecoms market, significantly increased our residential broadband base and enhancing earnings per share,” Dunstone added.