Retailer Carphone Warehouse today showed demand for mobile phones was still strong by posting a surge in half-year profits.
The group said organic growth – Carphone Warehouse now has 1,085 stores – and an expanding market share had boosted the figures.
Chairman and chief executive Charles Dunstone added: “This has been achieved in a period of tremendous change in the mobile telecoms sector and demonstrates our ability to benefit from this change.”
The group has been focusing over recent months on attracting high-value subscription customers following the demise of subsidised handsets.
During the six months to 29 September, Carphone Warehouse saw a 14% jump in total connections to more than 1.5m, with the number of subscription customers sparking 7% to more than 55%.
Total turnover for the group was £539.6m, up on last year’s £447.9m. Stripping out one-off losses, pre-tax profits rose from £8m a year ago to £9.6m.
Dunstone said: “The market is increasingly focused on handset replacement rather than first-time buyers. These factors play directly to our strengths.
“Our performance over the last six months demonstrates our ability to attract higher-spending customers with our mix profile continuing to significantly outperform the market.”
Carphone Warehouse has 430 stores in the UK but is not planning to increase the number over the coming months.
Instead, chief financial officer Roger Taylor said, the group was looking at expanding the size of existing stores to try to alleviate queuing problems.
Taylor said the group was expecting a surge in sales over Christmas on the back of an advertising campaign and a raft of new products.
In the five weeks to 3 November, Carphone Warehouse said connections were 308,000, taking the mix in favour of subscription customers up to 59%.
EGi News 07/11/01
