Carphone Warehouse profits rise as like-for-likes jump 4.6%

The mobile phone specialist said revenue was up 11.5% to £3.7bn after it grew market share in the UK. Like-for-like sales in its domestic market rose 10%.

The results mark the final full-year presentation to the City from chief executive Roger Taylor, who will become deputy chairman next month to be replaced by Andrew Harrison, who has been with the retailer for 18 years.

The retailer said it outperformed a weak market for prepaid mobile phones in the UK.

Taylor said: “Carphone Warehouse has had another good year, during which we made key strategic moves and delivered on our guidance. In the UK, we have grown our market share in both the postpay and prepay segments through ‘Smart Deals’ and excellent customer service, continuing to build our trusted brand.

“The acquisition of Best Buy’s 50% share of CPW Europe is now complete and we are excited to regain full control of the business, with the clarity and focus of management that the business deserves.”

Taylor said its Virgin Mobile France business has “proved its resilience” in a highly competitive French market.

However, the company has decided to exit its Phone House business in the country. Taylor said: “The French market has been extremely difficult and while our Phone House business was profitable for 2012-13, there has been an increasing lack of visibility of returns going forward.

“We therefore undertook a strategic review and have decided to manage an orderly exit through store disposals and some store closures, as announced in April.”

Earlier this year, Carphone Warehouse completed the acquisition of Best Buy’s 50% share of the CPW Europe joint venture it did not already own.

Taylor said: “The completion of our acquisition of Best Buy’s 50% share of CPW Europe means that once again Carphone Warehouse’s retail operation forms the core of the group’s business. It is logical, therefore, that Andrew Harrison, who has run this business for several years, should step up to become chief executive officer for the group.

“Andrew has worked for Carphone Warehouse for over 17 years and has been an important part of many of our growth strategies including our Best Buy Mobile venture and Connected World strategy.”

The company has also pushed the button on the roll-out of shop-in-shops in Metro Group stores in Germany and is eyeing opportunities in other countries.