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Carphone Warehouse Shows Resilience In Global Recession

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”.

Our Comments

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.

Related Links

Tempus: Carphone Warehouse plays its jolly ringtone (opens in new tab)

(Times Online)

UPDATE: Carphone Warehouse Demerger On Track; Repeats FY View (opens in new tab)

(The Wall Street Journal)

Carphone Warehouse inherits 160,000 fewer customers from Tiscali UK deal (opens in new tab)

(Telegraph)

Carphone Warehouse reports sales growth in retail and broadband units (opens in new tab)

(Mobile Today)

Carphone Warehouse gains more customers (opens in new tab)

(ShareCast)

Désiré has been musing and writing about technology during a career spanning four decades. He dabbled in website building and web hosting when DHTML and frames were en vogue and started writing about the impact of technology on society just before the start of the Y2K hysteria at the turn of the last millennium. Following an eight-year stint at ITProPortal.com where he discovered the joys of global tech-fests, Désiré now heads up TechRadar Pro. Previously he was a freelance technology journalist at Incisive Media, Breakthrough Publishing and Vnunet, and Business Magazine. He also launched and hosted the first Tech Radio Show on Radio Plus.