iPhone salvages Carphone Warehouse sales

 

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By Stuart Turton and Reuters

Posted on 23 Jul 2009 at 12:26

Carphone Warehouse has posted solid first-quarter results, off the back of impressive iPhone sales.

Carphone, which plans to separate its TalkTalk telecoms business from its Best Buy Europe retail venture by next July, reported that TalkTalk revenue fell 2% to £340 million in the three months ended June.

However, company chief executive Charles Dunstone admitted the figure could have been much worse if it wasn't for sales of the iPhone.

"I'd have paid you last October if you could promise our first quarter would turn out this way. The iPhone has had a massive effect on sales and it's had a massive effect on other handset manufacturers, who have been encouraged to innovate," he adds.

Alongside iPhone sales, TalkTalk added 47,000 new broadband customers, beating analysts' average forecast of 37,000 in a company poll. Revenue at Best Buy Europe hit £773 million, up 6% from this time last year.

"Both our businesses have continued to make good progress, despite the economic climate and we are able to reiterate all the financial guidance we have given for the full year," says Dunstone.

"In parallel, work progresses on schedule towards our proposed de-merger," he adds, adding the group now had established a separate bank account for Best Buy.

Carphone is Britain's biggest provider of residential broadband after its £236-million-pound purchase of Tiscali, which was completed earlier this month.