Carphone excites FTSE with profits prediction
Carphone Warehouse continued its recent run of strong trading updates today with a forecast that it will improve half-year profits by around 35%.
The mobile phone retailer and telecoms provider said it had performed better than expected after an “excellent quarter” in the 13 weeks to October 1.
Carphone shares jumped by more than 2% following the update, as the company indicated it would achieve profits of around £36.8m (€53.5m) in its half-year results, which are due to be published on November 3.
It said total connections were up 15.1% in the quarter to 1.78 million with a 20.6% improvement in the number of subscription contrac, at 830,000.
The retailer, which operates across Europe, said it also added a net figure of 50 stores during the period, taking its portfolio to 1,586.
The Talk Talk fixed-line service, which signed up its millionth customer in July, added a further 69,000 customers during the quarter in the UK.
Alongside the growth at its high street stores, the company has been looking to broaden the number of services offered by Talk Talk in the UK as it targets two million customers within three years.
Chief executive Charles Dunstone said: “We have enjoyed another excellent quarter of growth. Mobile market conditions continue to favour the Carphone Warehouse model, and our ongoing efforts to differentiate our offer are being rewarded.”
