Earnings: Carphone Looks To Best Buy As Dongles, Economy Impact Broadband
This story was written by Robert Andrews.
Carphone Warehouse profits rose 81 percent to 124 million ($242.39 million) in the year to March 29, on 12 percent better revenues of 4.47 billion ($8.73 billion).
But the group has a "cautious" outlook for the next year, "given the poor economic climate and inflationary pressures on European consumers". It blamed the slowdown of the housing market and, intriguingly, the rise of mobile broadband sales for lower take-up of its broadband than expected, warning it expects lower revenue next year if the trend continues.
So Carphone is betting its new JV with Best Buy will "give us a whole new avenue of potential growth in the wider consumer electronics market place". It incurred 15 million ($29.32 million) costs integrating AOL's (NYSE: TWX) UK ISP business, which it bought in 2006. More on paidContent:UK...
By Robert Andrews