Post-pay market drives Carphone Warehouse

Mobile phones retailer Carphone Warehouse has reiterated full year earnings guidance after a first half in which it gained market share in the UK post-pay market.

Mobile phones retailer Carphone Warehouse has reiterated full year earnings guidance after a first half in which it gained market share in the UK post-pay market.

Headline profit before tax, which excludes contributions from discontinued businesses and one-off items, rose to £8.6m in the six months to the end of September from a restated £6.6m the year before. Statutory profit before tax jumped to £8.3m from £5.3m the year before.

Diluted earnings per share (EPS) increased by half to 1.5p from a penny a year earlier. Headline EPS rose 20% to 1.6p from 1.3p the year before. The group has reiterated its full year EPS guidance range of 11.5p to 13.0p.

The company is dipping into its reserves to fund an unchanged interim dividend of 1.75p.

The 50% owned CPW Europe joint venture (JV) saw first half revenues up 1.6% on a like-for-like basis, with LFL revenues in the second quarter up 5.0%.

Headline earnings before interest and tax (EBIT) of £12.5m was down from £2.0.0m the year before, but ahead of guidance. Much of the fall was attributed to a weak pre-pay market. The group is sticking with its full year EBIT guidance range of £130m - £150m for the JV.

As for the 46% owned Virgin Mobile France JV, this saw revenue grow 9.2% on a constant currency basis. EBIT of £8.1m, up from £8.0m a year earlier, was in line with expectations. Full year guidance of a broadly unchanged EBIT (in euros) remains unchanged.

"We have substantially increased our market share of UK post-pay volumes and, while the pre-pay market remains weak, we hope for an improvement in the second half as the product pipeline continues to broaden," said Roger Taylor, Chief Executive Officer of Carphone Warehouse.

"In Continental Europe, we have also been exploring growth opportunities for the business through potentially long-term strategic partnerships. Virgin Mobile France has grown its revenue and post-pay customer base, despite intense competition, and is starting to benefit as it moves its customers onto its Full MVNO [mobile virtual network operator] infrastructure," he added.

JH

Recommended

A new legal headache for Haleon
Stocks and shares

A new legal headache for Haleon

Haleon, GSK’s former consumer-products arm, spun off last month, has made a dismal debut on the stockmarket.
17 Aug 2022
Persimmon yields 12.3%, but can you trust it to deliver?
Share tips

Persimmon yields 12.3%, but can you trust it to deliver?

With a dividend yield of 12.3%, Persimmon looks like a highly attractive prospect for income investors. But that sort of yield can also indicate compa…
17 Aug 2022
Cineworld faces a bleak future – investors should stay away
Share tips

Cineworld faces a bleak future – investors should stay away

Weighed down by crippling debts and with consumers tightening their belts, Cineworld's future does not look bright, says Rupert Hargreaves. Investors …
17 Aug 2022
Britain’s ten most-hated shares – w/e 12 August
Stocks and shares

Britain’s ten most-hated shares – w/e 12 August

Rupert Hargreaves looks at Britain's ten most-hated shares, and what short-sellers are looking at now.
16 Aug 2022

Most Popular

Don’t listen to the doom-mongers – the future is bright
Economy

Don’t listen to the doom-mongers – the future is bright

With volatile markets, raging inflation and industrial unrest, it may feel like things are bad and likely to get worse. But the end of the world is no…
15 Aug 2022
Investors should get ready for a political revolution
UK Economy

Investors should get ready for a political revolution

Liz Truss will beat Rishi Sunak, cut taxes, and then shake up the Bank of England, says Helen Thomas
15 Aug 2022
How solar panels could lower your energy bill
Energy

How solar panels could lower your energy bill

Solar-panel installation firms are reporting a four-fold increase in orders this year compared with 2021. Ruth Jackson-Kirby explains how solar can he…
14 Aug 2022