Carphone shares soar on dividend promise
Saturday 06 November 2010
Carphone Warehouse has pledged more cash to promote its Best Buy electronics megastores as it looks to establish the fledgling brand in the UK.
The group saw it shares jump 11 per cent to 341.75p yesterday as it also said it expected to pay its first dividend at the end of this financial year.
The company, which opened its sixth "Big Box" outlet in Derby yesterday, said customer feedback had been "highly encouraging" but it needed more marketing than planned as it establishes the brand against rivals such as Comet and Curry. As a result it raised it forecast for losses from Best Buy UK to £50m-£55m, up £10m on its forecast in April.
Carphone's Best Buy Europe business, which also includes its high street mobile phone stores, is a 50-50 joint venture with US firm Best Buy.
Carphone raised its guidance for full-year results yesterday after strong demand for smartphones resulted in a sharp jump in its share of profits from Best Buy Mobile US, the mobile phone retailing operation in the US. It said Carphone's core stores in Europe continued to perform strongly, with like-for-like revenues up 2.4 per cent in the first half and pre-tax profits of £23.7m. Underlying earnings rose 56 per cent to £44m.
The chief executive, Roger Taylor, said: "We have delivered a strong first half with good performances across all our businesses, and we are raising our guidance for the full year."
Carphone sold half of its retail business to Best Buy for £1.1bn in 2008 before demerging its TalkTalk broadband arm earlier this year.
- 1 Benedict Cumberbatch says Hollywood is better for black British actors: 'I think as far as coloured actors go it gets really difficult in the UK'
- 2 Man who held up 'hire me' sign at Waterloo station returns a year later with 'I'm hiring' sign
- 3 UK weather: Snow to fall in the coming week with sub-zero temperatures to last until early February
- 4 Saudi preacher who 'raped and tortured' his five -year-old daughter to death is released after paying 'blood money'
- 5 Warriors in ancient Iraq suffered Post-Traumatic Stress Disorder more than 3,000 years ago, say researchers
Rowan Atkinson to sell £10 million McLaren 'supercar' he crashed into a tree and a lamppost
UK weather: Snow to fall in the coming week with sub-zero temperatures to last until early February
Saudi preacher who 'raped and tortured' his five -year-old daughter to death is released after paying 'blood money'
US blames Russia after rocket attacks in Ukraine kill at least 30
Warriors in ancient Iraq suffered Post-Traumatic Stress Disorder more than 3,000 years ago, say researchers
Nigel Farage: NHS might have to be replaced by private health insurance
'We would evict Queen from Buckingham Palace and allocate her council house,' say Greens
French court convicts three over homophobic tweets, in case hailed as a 'significant victory' by LGBT rights campaigners
George Galloway condemns 'racist, Islamophobic, hypocritical rag' Charlie Hebdo at freedom of speech rally
British Muslim school children suffering a backlash of abuse following Paris attacks
Islamic history is full of free thinkers - but recent attempts to suppress critical thought are verging on the absurd
iJobs Money & Business
£30000 - £32000 per annum + benefits : Ashdown Group: A highly successful, int...
£18000 - £20000 per annum: Recruitment Genius: This rapidly expanding business...
Negotiable: Recruitment Genius: A Tax Assistant is required to join a leading ...
£16000 - £25000 per annum: Recruitment Genius: This is an exciting opportunity...