Carphone Warehouse posts rise in revenue, maintains full-year guidance

Tuesday 29 April 2014 07.27
Carphone Warehouse and Dixons have until 19 May to decide whether to press ahead with a merger deal
Carphone Warehouse and Dixons have until 19 May to decide whether to press ahead with a merger deal

Carphone Warehouse, Europe's biggest independent mobile phone retailer currently in merger talks with Dixons Retail, reiterated full-year earnings guidance and posted a rise in fourth quarter revenue at its main CPW business.

The firm's trading update today made no mention of the talks with Dixons, Europe's number two electricals retailer, for a possible £4bn merger.

Britain's Takeover Panel has imposed a 19 May deadline for the two firms to confirm whether they intend to press ahead with a deal that would create a group with about 2,900 stores across Europe.

The combined entity could also find a place in Britain's FTSE 100 share index.

Carphone said sales at CPW Group stores open over a year rose 2.3% in the three months to 29 March - a seventh straight quarter of like-for-like growth.

That compares to third quarter like-for-like growth of 3.1%.

However, the firm said its Virgin Mobile France joint venture lost 17,000 post-pay customers in the quarter to stand at 1.3 million customers, while revenue fell 8.6%.

Carphone reiterated its full-year guidance for headline earnings per share of 17-20 pence, up from 12.3 pence in the 2012-13 year.

It narrowed guidance for CPW's pro-forma headline earnings before interest and tax, forecasting £145-155m compared to £140-160m previously.

Shares in Carphone, up 60% over the last year, closed yesterday at £3.07p, valuing the business at £1.77bn.