Carphone Warehouse has said problems with its broadband service and start-up costs for its Virgin Mobile France joint venture will cost it an extra £20m to £30m in its 2007-8 financial year.
The British firm, which is making a loss on its broadband service and has already had to find extra money to pay for technical and customer service problems, said the continuing difficulties would cost it an extra £10-15m in the year to March 2008.
It also expected to have to spend an extra £10-15m on start-up costs for its Virgin Mobile France joint venture.
The London-based firm said profit for 2007 would be in line with market expectations, but analysts lowered their profit forecasts following the news about the Internet troubles.
The firm has helped kick-start an intense price war between telecoms players in the broadband market with its much-hyped move into internet provision, but the service has been plagued with technical, customer service and logistical problems.
Customers have complained of waiting months to be connected to the internet, having to spend hours on customer service lines, and connections regularly failing once they have been connected.
