While it’s not yet quite the results season, the next best thing is a trading update, and one out from Carphone Warehouse in the UK shows nothing but good, with all estimates shifted to the top end of previous forecasts for its financial third quarter ending in March.
The earnings per share will be at the top of the existing predicted range at around 15p compared to last year’s 12.6p; the net income from its 50:50 joint venture phone retail arm with Best Buy is now expected to be £40 million to £45m compared with previous guidance of £30 million to £40 million, while its TalkTalk Group’s broadband base is now expected to reach the top end of existing forecasts at 4.2 million customers.
Even Carphone’s joint ownership of Virgin Mobile France, where it is a 48.5% shareholder with Virgin Group, is on the up, with revenues there, excluding its October purchase of Tele2 in France, up 44% to €63 million to a customer base of 1.69 million.
TalkTalk total revenues will be up 29% says Carphone to around £446 million, with the addition of 36,000 net new broadband customers and it says the Tiscali integration is well on track to deliver expected cost synergies.
Best Buy Europe offers perhaps more pedestrian growth, given that it is a retail company and only consumer spending and opening new stores can drive up revenues, but even a growth up 5.5% (3.7% on a constant currency) means that recessionary forces are being held at bay, at least in mobile phones. The fact that Best Buy Mobile US connections are up 26.7% gives this further hope in the coming quarters.
The demerger of Best Buy Europe to a separate company is on track to be completed by the end of March 2010 Carphone says.
Charles Dunstone, Chief Executive Officer said, ‘TalkTalk Group’s brand profile, value for money proposition, and customer service have continued to generate real momentum in the market, attracting 36,000 net new broadband customers during the quarter and taking the base to 4.15m. We are now confident that our base at the end of the current financial year will be towards the top of our existing 4.1m to 4.2m guidance range. The Tiscali integration remains well on track to create a highly efficient platform for providing our customers with excellent value and service.’
Tiscali offers more than just more broadband lines, and the company has said that it will continue its TV service unchanged except that the TalkTalk brand will be used for all Tiscali products as from this month in the UK. The Tiscali TV service came out of UK IPTV provider Video Networks, and Carphone Warehouse will use it to launch TalkTalk TV later in the year, probably using the BBC Canvas set top designs.
This trading statement should give most European broadband, mobile and broadcast analysts something to chew over, since clearly these segments of the economy are back on track, certainly in the UK, but also likely throughout the rest of Europe.