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 British tourists 'murdered' in Thailand: Pair's bloodied bodies found naked on Koh Tao beach
- 2 Vivienne Westwood says 'Yes' to Scottish Independence by declaring: 'I hate England'
- 3 Welcome to Cameroon, where drinking Baileys can lead to imprisonment
- 4 Lego breaks out of the toy box and heads for the gallery
- 5 Vogue under fire for 'Big Booty' article
Daniele Watts: Django Unchained actress detained by Los Angeles police after being mistaken for a prostitute
The political class is doing what Hitler couldn’t – destroying Britain
Scottish independence: Nationalist leader Jim Sillars threatens pro-union companies with 'day of reckoning' after independence
Scottish independence: Yes campaign feels the heat as Alex Salmond's NHS claims come under furious attack
£23m Birmingham cycle scheme is attacked by Tory councillor for not catering to the elderly
Salmond accused of laughing off national debt with ‘what are they going to do: invade?’ joke
iJobs Money & Business
£280 - £320 per day: Ashdown Group: The Ashdown Group have been engaged by a l...
£400 - £450 Per Day: Clearwater People Solutions Ltd: **URGENT CONTRACT ROLE**...
£35000 - £38000 per annum + Benefits: Ashdown Group: Training Coordinator / Pl...
Data Governance Manager (Solvency II) – Contract – Up to £450 daily rate, 6 month (may go Permanent)
£400 - £450 Per Day: Clearwater People Solutions Ltd: We are currently looking...