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Tuesday, January 24, 2012

Carphone Warehouse says low-end prepay market caused quarterly revenue drop

The Carphone Warehouse Group plc has published an interim management statement for the third quarter of its current financial year. It says its business in Europe performed strongly on post-pay (‘pay monthly’ deals) and non-cellular products, although a weakness in the lower-value prepay market resulted in like-for-like revenue being down by 4.7% when compared with the previous year.

A reduction in network subsidies, a lack of smartphone products and a weak consumer environment are all blamed for the weak low-end prepay market, with the UK's prepay market estimated to be down between 35% and 40% in Q3.

Overall, figures for the full year are expected to be in line with previous guidance.

The company also noted that the sale of its interest in Best Buy Mobile US had been approved by shareholders. All eleven Best Buy UK stores have been closed, along with Best Buy UK online, and ‘credible alternative roles’ have been offered to almost all staff who wanted to remain within the business.

Roger Taylor, CEO of Carphone Warehouse, said “CPW Europe has performed strongly on postpay sales and is now benefiting from the improved profitability of its new postpay commercial terms. In addition, we achieved 15% growth in our non-cellular revenues, with the sale of tablets and other devices accelerating. As expected, the prepay segment remains weak, with a significant decline in low-end prepay sales year-on-year. We remain well-placed to benefit from continued consumer enthusiasm for connected technology, and as such we are accelerating the roll-out of our Wireless World stores to meet this demand and deliver a strong service proposition that complements this segment of the consumer electronics market. As with all retailers, we face a tough consumer backdrop, but our customers value our proposition and we are capitalising on the strong product cycle in smartphones and non-cellular categories, where we continue to broaden our range. With confidence in our future, we are reiterating our guidance for this year's Headline earnings.”

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Opinion Articles

Opportunities for media coverage and promotion at Mobile World Congress 2013

It’s heading towards that special time of the year when people prepare for a frantic few days of excitement, they get ready to exchange cards and they hope to glimpse a brand new star.

Yes, Christmas is over and everyone’s thinking about Mobile World Congress.

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Advertising gets truly personal with Pontis

Every mobile network customer can be offered an individually tailored deal

Mark Bridge writes:

Advertising is already personal. Browse online for certain products and services – perhaps a new camera, a car hire deal or a pair of jeans – and you’ll see the same items advertised when you visit other web sites.

Marketing technology company Pontis, based in the high-tech industrial zone of Ra'anana in central Israel, has a much more focussed perspective. It talks about a segment-of-one marketing approach… and it’s just started working with O2 in the UK.

Author: The Fonecast
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Top ten gadgets for 2013

Mark Bridge writes:

I’ve recently been talking to Theo Neumann from Wolverhampton City Radio about the top ten gadgets that are likely to hit the headlines in 2013. The most desirable, most likely to be talked about, most exciting… that kind of thing. Although my top 10 list isn’t entirely mobile-related, I thought it was worth sharing here.

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Are brands missing a trick with mobile?

Dave Katz writes:

It has been reported recently that consumer spend via mobile is on the increase this Christmas. Further confirmation has come from research indicating that 20% of the expected £4.6bn of total online shopping will be carried out using smartphones and tablets.

If consumers want to browse, research and purchase via mobile, then is it not something of a surprise that only 7% of adspend in the UK currently goes on mobile?

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Mobile phone industry predictions for 2013

Iain Graham, James Rosewell and Mark Bridge look into the future

Mark Bridge writes:

Predicting the future is easy. Making accurate predictions is more of a challenge. In our final podcast of 2012 we've provided a forecast for the mobile telecoms industry in 2013 - and we've also looked back at last year's expectations.

So... what do the three of us at TheFonecast.com expect from mobile phones and wireless technology next year?

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A month of mobile: O2 counts on 3, Microsoft counts to 10 and Apple counts its profits

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