A greater contribution from businesses compensated for lower
sales to consumers and helpedCarphone Warehouse Groupgrow total revenues 5% in
its first quarter of 2009.
Carphone Warehouse Group CEO Charles Dunstone said both
TalkTalk, its UK network operator, and Best Buy Europe, its
retailing operation, had defied the recession to post growth. He
expected to meet annual targets and to demerge the two
businesses.
Dunstone said the average customer spend on TalkTalk was up 5%.
The firm added 47,000 new broadband customers and migrated 59,000
to its own network infrastructure. Bringing more customers to its
own network (currently 79%) improved its operating margins as did
lowering customer "churn" (acquisitions less losses), he said.
Total sales at TalkTalk were down 2% to £340m. Residential
revenues were flat quarter-on-quarter and down 3% year-on-year at
£264m. This reflected a year-on-year drop in voice-only and dial-up
customers, compensated by continued good growth in broadband
customers. Revenues from businesses were up 1% year-on-year to
£76m, as Opal's new product offerings to SME customers, which
include broadband, proved attractive, he said.
Best Buy Europe, the retail and distribution business that
Carphone Warehouse Group half-owns, boosted connections 3%
year-on-year to grow share in a subdued market and boost sales 6%
to £773m.
"High-end and prepay phones continue to drive connections
growth, but we expect today's high-end phone features increasingly
to cascade into the mid-tier range as technology becomes cheaper
and touch-screen phones continue to gain popularity," Dunstone
said.
Dunstone said the integration of Tiscali's UK business from 3
July 2009 was going well. He promised an update on progress in
October, but was confident of achieving the benefits he first
identified in the deal.