While Cable and Wireless Worldwide seems to have put its planned demerger on hold, Carphone Warehouse appears to be more than enthusiastic to go ahead with the proposed split.
The broadband provider and handset retailer has posted impressive sales growth in both its sales as well as retail units in the second quarter.
Carphone Warehouse has further used its second-quarter trading update to make it clear that its keenly awaited split, under which the company will be divided into two listed firms by March 2010, is on the right track.
The company noted that its retail and distribution division, Best Buy Europe, has performed well in spite of a recession-induced slump in demand. It largely attributed its success to iPhone 3G model.
Citing the same, Charles Dunstone, chief executive at Carphone Warehouse, said: “Despite an overall subdued handset market and tough year on year comparatives, due to the introduction of the 3G iPhone last July, we grew total connections by 2%”.
In addition, the company’s broadband division, TalkTalk, too fared better in these tough times, and added as many as 77,000 new customers in the second quarter.
Reiterating the firms’s willingness for the proposed demerger, Dunstone said: “We remain convinced that separating TalkTalk Group and Best Buy Europe will enable the worth and potential of each business to be more appropriately evaluated”.
Carphone Warehouse's deal with Bestbuy is only unravelling now. Furthermore, Carphone Warehouse is looking to re-negotiate its deal with Tiscali UK after it emerged that the beleaguered ISP had 160,000 fewer customers on its balance sheet.
(The Wall Street Journal)