Publications

Format: Jun 2018
sort descending Sector(s) Date
Carphone Warehouse acquisition of Tiscali UK: The Italian Job

Carphone Warehouse’s acquisition of Tiscali UK makes TalkTalk Group the second largest UK ISP and the largest in terms of residential broadband subscribers, just as market growth begins to stall

The company’s synergy target looks readily achievable, although integration challenges are significant and could make the acquired customer base difficult to stabilise

Nonetheless, TalkTalk Group now seems set to dominate the ‘value’ end of the UK residential telecoms market

  • TalkTalk
  • Carphone Warehouse
Telecoms, Fixed Line 9 May 2009
Carphone Warehouse December quarter results: Weak prepay hits revenue, but strong contract supports profits

Carphone Warehouse’s Q3 2011/12 volume and revenue was severely hit by a steep reduction in UK prepay volumes, with prepay subsidy cuts driving a drop in the UK market of as much as 40%

However, stronger volumes of higher margin contract handsets drove a small improvement in gross profit for the quarter

The unexpected prepay weakness means that Carphone Warehouse’s handset business will have roughly flat operating profit in its 2011/12 financial year at best, although given the negative external factors this would reflect a strong underlying performance

  • Carphone Warehouse
Mobile, Telecoms 26 January 2012
Carphone Warehouse December quarter: growth increasingly challenging, but downside protected

Distribution growth improved considerably (retail grew 13% versus 8% last quarter), with strong contract sales more than counteracting a relatively weak prepay performance

  • Carphone Warehouse
Telecoms, Mobile 22 January 2008
Carphone Warehouse Group interim results to September 2009: forging ahead

Fixed line revenue growth continued to decline excluding the impact of Tiscali UK, but at a manageable rate, and profitability continued to improve strongly. TalkTalk Group is performing well in the run-up to demerger, and management is sounding very confident. But there are some clouds on the horizon, not least the relaunch of Tesco Telecom

Sky+ HD is now manifestly the centre point of a three-pronged operational strategy that focuses on driving customer growth, selling more products into the customer base and seeking efficiencies in fixed costs

Sky 3D, due for residential launch in H2 2010, fits in well with the core Sky+ HD proposition and the satellite operator looks well placed to combat growing retail competition from other platforms, assuming Ofcom implements its wholesale pay-TV proposals for Sky premium subscription films and sports some time in spring 2010

  • Carphone Warehouse
Media 30 November 2009
Carphone Warehouse Group March 2010 quarter trading update: riding recovery?

CPW grew its core European mobile handset distribution business in underlying like-for-like revenue terms by 3% in the March quarter, and its profits grew by 18% in the 2009/10 year, although connection volumes and actual revenue fell during the quarter

Growth is improving with the recovery, but not dramatically, as its strong competitive performance during the recession is unwinding to some extent. Nonetheless, 2010/11 should see continued improvement, with handset trends still generally going in CPW’s direction

The company is currently more than covering the start-up losses at its ‘big box’ consumer electronics business in the UK through steady growth at CPW Europe and dramatic growth in the US, and should continue to do so in 2010/11. However, thereafter there is far more uncertainty, as the big box business will have to start trading well to prevent accelerating losses, and we have no visibility over its prospects as yet

 

  • Carphone Warehouse
Telecoms, Mobile, Non-UK Telecoms 28 April 2010
Carphone Warehouse H1 2011/12 results: Late handset launches hurt

Carphone Warehouse’s H1 2011/12 results were overshadowed somewhat by the announcements that it is shutting down its UK ‘big box’ consumer electronics venture and selling its share in the Best Buy US handset business

Its actual core business operating performance was grim, with drops of 12% in volume and 4.5% in like-for-like revenue in the September quarter, with the slashing of prepay subsidies in the UK hitting volumes, and the late arrival of the iPhone 4S hitting revenue

With the iPhone 4S having now launched, H2 is likely to be much better, with like-for-like revenue returning to growth, and a focus on the core business will help in weathering the economic headwinds to come

  • Carphone Warehouse
Mobile, Telecoms 16 November 2011
Carphone Warehouse interim results: calm before the storm?

Carphone Warehouse’s distribution side was very strong in revenue terms in the September quarter, with an underlying (ex-currency) growth of 11%

The company is right to be cautious about the Christmas trading environment, although we believe that it will continue to do well in relative terms at least, and even has a fighting chance of hitting the distribution revenue guidance made back in April

Fixed line revenue growth was hit by churn and spin down at AOL UK, and churn in the non-broadband base. Fixed line EBITDA grew encouragingly as cost savings from LLU kicked in, but overall financial performance was marred by the cost of free laptop and retention offers at AOL UK

  • Carphone Warehouse
Telecoms, Fixed Line 26 November 2008
Carphone Warehouse June quarter results: steady in Europe, strong in US

CPW saw growing revenue but falling volume in its core European handset retail business, as contract handset growth outperformed prepay

We believe that this is in line with a slightly subdued market, with consumer confidence quite weak across a number of European countries

CPW’s US business did much better, growing at 30%, and it is this strength that leaves us confident in the group’s ability to have a strong full year

  • Carphone Warehouse
Telecoms, Mobile, Non-UK Telecoms 27 July 2010
Carphone Warehouse June quarter trading update: on course

The distribution business experienced modest growth in connections and revenue, easily outpacing European market handset growth of -15%, as the company continues to build market share

At TalkTalk Group (TTG) net broadband additions for the quarter were relatively strong, given likely market growth, probably due at least in part to reduced subscriber loss at AOL UK

In our view cut-price business broadband, rather than IPTV, offers the best prospect of profitable revenue growth in fixed line

  • TalkTalk
  • Carphone Warehouse
Telecoms, Mobile, Fixed Line, Non-UK Telecoms 22 July 2009
Carphone Warehouse March quarter results: Prepay declines continue to weigh

CPW’s key operating metrics worsened again in the March quarter, with connection volume growth dropping to -19% and like-for-like revenue growth dropping to -5.5%

Weakness in the UK prepay market continued to affect CPW’s results, with volumes again down 30-40%, but contract sales did not mitigate this as much as last quarter, with growth in the UK but declines in continental Europe

Prepay is not likely to improve until the end of 2012, as the volume decline annualises out and more smartphones are available at prepay price points, and contract recovery is dependent on economic recovery

  • Vodafone
  • Telefonica
  • Orange
  • Carphone Warehouse
Mobile, Telecoms 9 May 2012
Carphone Warehouse March quarter trading update and analyst day

Carphone Warehouse had a solid quarter, and its expectation of a currency-aided 9-10% growth rate in 2008/2009 distribution revenue looks achievable, as does guidance of 4-5% growth in fixed line revenue, unless loss of telephony-only customers accelerates

 

 

 

  • Carphone Warehouse
Telecoms, Mobile, Fixed Line 23 April 2008
Carphone Warehouse March quarter trading update and analyst day

In fixed line, net broadband additions for the quarter were strong at TalkTalk given a tough market, but remained firmly negative at AOL UK

We are sceptical of new guidance for fixed line for the year to March 2010, but still expect reasonable performance, given the slowdown in broadband market growth

The distribution business continued to defy the consumer downturn in volume terms, with 12% connections growth and a solid outlook for next year, although the pain is being felt at the margin level

  • TalkTalk
  • Carphone Warehouse
Telecoms, Fixed Line 22 April 2009
Carphone Warehouse Q1 2011/12 results: weak start to the year

CPW Europe had a weak first quarter, with like-for-like revenue growth of -3.3%, with all of the drop coming from the 18 to 24 month contract length shift in the UK

We expect its performance to improve through the rest of its fiscal year, but it will need to in order to hit even the bottom end of its full year guidance

The US mobile retailing operation is doing much better, with very strong revenue growth, and is likely again to exceed full year guidance

  • Google
  • Carphone Warehouse
  • Apple
Mobile, Telecoms, Technology 27 July 2011
Carphone Warehouse Q1 trading update: weathering the storms

Carphone Warehouse had a solid quarter on the distribution side given the current environment, with 6-7% underlying organic retail growth and roughly stable like-for-like figures

  • Carphone Warehouse
Telecoms, Mobile, Fixed Line 4 August 2008
Carphone Warehouse Q2 trading update: walking briskly against the wind

Distribution connection numbers were strong (+9%), especially on contract (+21%), despite a reduction in store expansion and the consumer slowdown which is affecting other consumer electronics businesses

  • Carphone Warehouse
Telecoms, Mobile 19 October 2008
Carphone Warehouse Q3 2010-11 results

CPW’s European volume and revenue growth dropped in the December quarter, but this was largely due to the higher mix of prepay in the Christmas period, with underlying trends (strong contract, weak prepay) unchanged

US volume growth surged to 34% as the company continued to roll out standalone stores in malls and shopping centres, and there appears to be plenty of growth to come

Looking forward, the UK business is likely to suffer from the longer handset contracts that have been rolled out by the UK mobile operators over the last two years, but continued strength in the US is likely to more than make up for this

  • Carphone Warehouse
Technology, Telecoms, Mobile 20 January 2011
Carphone Warehouse Q3 trading statement: is no news good news?

Carphone Warehouse’s core distribution business was firm, showing no signs of being harmed by Vodafone withdrawing its new contract business in the UK

  • Vodafone
  • Carphone Warehouse
Telecoms, Mobile 18 January 2007
Carphone Warehouse Q4 2010/11 results: weathering storms

CPW Europe had a difficult quarter, with volumes falling 9% and like-for-like revenue 2%, due to continued prepay weakness and the shift to 24 month contracts in the UK

The US business was again very strong, growing volumes at 26%, and this strength is likely to continue due to an acceleration in store roll outs

Keeping the European business flat in 2011/12 will be a challenge, but the US business is likely to more than make up for this at the group level

  • Carphone Warehouse
Mobile, Telecoms, Technology 5 May 2011
Carphone Warehouse September quarter trading update: continued resilience

At TalkTalk Group (TTG) net broadband additions at TalkTalk/AOL UK were unexpectedly strong, with low cannibalisation of Tiscali subscribers particularly good news

At the newly acquired Tiscali UK, the inevitable skeletons are starting to emerge from their cupboards. Management appears well prepared for the challenges, although it is early days

Carphone Warehouse’s distribution business grew connections at 2.1% during the quarter, another very creditable performance in a declining market, and it remains well positioned for the market recovery

  • TalkTalk
  • Carphone Warehouse
Telecoms, Mobile 7 October 2009
Carphone Warehouse trading update

The distribution side was slightly weak again, but the prospects for the Christmas quarter are much better, with the iPhone exclusivity a big help even if its sales prove to be weak

  • Carphone Warehouse
Telecoms, Mobile 9 October 2007

Pages