Carphone Warehouse profits down 10%

5 Jun 2007

Carphone Warehouse has reported a near 10% decline in full year pre-tax profits after experiencing tough conditions in the highly competitive UK broadband market. The company said pre-tax profits for the year ending 31 March 2007 were down 9.5% to GBP123.1 million (USD244.5 million) following start-up losses at its broadband and Virgin Mobile France ventures. Net income came in at GBP68.4 million compared to GBP81 million one year previously. Revenue from telecoms services climbed by more than 50% to GBP1.7 billion, helped by the acquisition of AOL UK in October 2006. Over 30% of its 2.3 million broadband customers had been moved onto its own network by the end of March. According to TeleGeography’s GlobalComms database, Carphone Warehouse is now the UK’s third biggest broadband provider by subscribers behind BT Group and Virgin Media. The company hopes to have signed up 3.5 million users to its high speed internet access service by March 2010.

United Kingdom, TalkTalk