Carphone Share Discussion Threads

[prokartace] 24/3/2009 13:06

Someone is wanting to buy these shares. Price shot up 10p in seconds before settling back down again. The chart technicals also look very bullish with a significant breakout from a long period of down-trend

[royaloak] 12/2/2009 15:33

Just signed up again for my talktalk international package for another eighteen months. Free calls day or night, free international calls to thirty six countries, free broadband, line rental included in the package for less than £22 per month, so they are doing something right!

[varrirob] 09/2/2009 23:12

Coming up to my first buy price of 109p back at the start of the year. Not sure whether to hold or sell. Any thoughts?

[paragon157] 09/2/2009 08:34

westcoach

Get back on the Barc thread and do your "Deramping" .. Think you have made a fool of yourself on there ? And still are ! .. Lol

[westcoastrich] 08/2/2009 18:41

that disgraced director - has he dumped his load yet?

[varrirob] 30/1/2009 23:28

Maybe I am being overly optimistic, but I think with Best Buy and as you mentioned the governments broadband growth expectations, I do believe that CPW could do well over the next year, even through these difficult times.

[evil as hell] 30/1/2009 09:26

With news that every household will have broadband this will help CPW.

[varrirob] 28/1/2009 22:07

EaH - Hope so, it's been a poor performer since I purchase at 200p!! I thought it would do well after a reasonably positive start to the year.

[paragon157] 28/1/2009 14:52

Really ? .. Lol

[evil as hell] 28/1/2009 14:47

LOOKS LIKE THE START OF A MASSIVE "BREAK-OUT"

[evil as hell] 28/1/2009 09:32

Looks like the start of a massive BREAK-OUT.

[crosswire] 15/1/2009 13:54

Analyst Consensus 12 Month Target Price

The 19 analysts offering 12 month price targets for Carphone Warehouse Group (CPW:LSE) have a median target of 150.00, with a high estimate of 335.00 and a low estimate of 95.00. The median estimate represents a 51.13% increase from the last price of 99.25.

[crosswire] 15/1/2009 13:51

Carphone Warehouse weathers economic stormRichard Wray guardian.co.uk, Thursday 15 January 2009 10.56 GMT Article history
Carphone Warehouse has weathered the economic storm, posting a 13% increase in retail revenues over the last three months of 2008 and saying it expects to hit the City's annual forecasts. But the company is planning to slash costs in the coming year as the economic environment continues to worsen.

"People have got money to spend if you give them very strong offers," said chief executive Charles Dunstone on a call with analysts. "But you have got to work very hard to get their money."


Europe's largest independent mobile phone retailer said retail revenues for the 13 weeks to 27 December were just over £1bn, up 13% from £894m in 2007 and ahead of analysts' forecasts. Like-for-like revenues were up 6.5%, or down 1% if the drop in the value of the pound is taken into account. In the UK, like-for-like revenue growth was 8.3%.

The company, which last year clinched a joint venture deal with American giant Best Buy, reckons it took a record 30% of the mobile market over Christmas, which is dominated by sales of pre-pay handsets used as gifts. Overall, mobile connections were up 3% to 3.7m, which represents a significant slowdown from 9.4% growth in the previous quarter. Carphone said the slowdown reflects a weak market for mid-tier handsets. Demand for smartphones such as the iPhone and mobile broadband services, however, continued to be strong in the quarter.

Like-for-like retail gross profit was up 3.8% - or down 3.7% taking into account foreign currency movements – with the company making less profit per handset as it discounted prices to attract customers. Carphone Warehouse said it expects retail margin to be down 150 basis points over the year.

The company's TalkTalk telephony service saw revenues drop 2% to £347m, in-line with the City's expectations. At the end of the year TalkTalk had 2.7 million customers, having added 36,000 during the quarter. In fact, TalkTalk added 73,000 customers over the three months but AOL – which the company bought two years ago - had 37,000 disconnections. Overall the company said the broadband market is "subdued, but we believe TalkTalk in particular is well positioned at the value end of the market as consumers become increasingly cost-conscious".

Overall, Dunstone said the company expects to achieve earnings per share of 12p to 13p this year, in line with recent market forecasts and its goal for the year to end March 2010 is to achieve a similar level of earnings after investment in large Best Buy stores.

Dunstone's confidence is in stark contrast with his position back in November when he did not feel able to give any forecast whatsoever, a stance which sent Carphone Warehouse shares into a tailspin.

He said the company now has some experience of operating in a tough retail market - cutting costs in order to offer ever increasing discounts to cash-strapped consumers - and he knows it can cope with a situation that he estimates could last anywhere from 12 to 24 months: "We just feel a bit more confident about understanding the environment we are operating in."

Dunstone said trading experienced a "very big push" just before Christmas, with "very strong sales during January" but his forecast for the year is based on the knowledge that "it will get significantly tougher in February when the sales end".

Carphone Warehouse also used its post-Christmas trading update as an opportunity to set out its 'strategic goals' for the year to end March 2010, saying it still plans to open its first Best Buy branded 'big box' store in the UK later this year, despite the retail downturn.

One of the group's goals is to improve its cash generation. The company expects its TalkTalk residential telephony business to generate in excess of £100m of operating free cash flow, while its retail business – now called Buy Europe - is targeting a figure of £50m, before investment in 'big box' stores.

As part of this plan the company it will be reviewing its "operating cost base and structure in detail" over the next few weeks "with a view to ensuring it is consistent with anticipated revenue and margin trends in the year ahead". Traders took that to mean that a major cost-cutting programme is being planned.

The Best Buy joint venture has lead Dunstone to consider demerging TalkTalk from the retail business. Some in the City had expected the economic downturn to have speeded up that process with an announcement of a full demerger today.

The company, however, said in its update merely that the structural review it announced in November 2008 "will be concluded during the year" and include identifying a structure for the businesses "that is best suited to the operational and management needs of the business".

"Any change in structure recommended by the structural review is planned to be well under way by March 2010, subject to market conditions," it added.

Two years ago, Carphone Warehouse was dealt a blow when Vodafone stopped the retailer from selling its phones to customers willing to take a contract, signing an exclusive deal instead with Vodafone.

Since then the two companies have been in frequent contact as Carphone Warehouse has tried to woo the network back into its stores.

There have been rumours in recent weeks that a deal is on the cards, but Dunstone was giving little away: "It is very difficult for me to comment publicly on our relationship with an individual operator.

"We do have a good relationship with Vodafone. We would so much like to be selling Vodafone subscriptions and we working towards that aim. I cannot say anything more at the moment."

[crosswire] 15/1/2009 13:50

Carphone Warehouse posts strong Q3

Stuart O'Brien Today, 11:35am

Christmas trading in the UK sees retail revenue rise by 13 per cent.
The Carphone Warehouse beat analyst estimates to deliver retail revenue just over £1 billion in its 3Q, up 13 per cent from £894 million in 2007.

However, it has also confirmed it will be making operational and capital expenditure savings this year to help it weather the economic storm.

Carphone entered a joint venture with US electronics retail giant Best Buy last year, and claims it accounted for 30 per cent of UK mobile phone sales over the Christmas period.

[crosswire] 15/1/2009 13:50

Carphone Warehouse reports 13 pct rise in revenue
10 minutes ago

LONDON (AP) - Carphone Warehouse Group PLC, Europe's largest mobile phone retailer, warned Thursday that challenging times lay ahead even as it reported a 13 percent increase in retail revenues to 1 billion pounds ($1.5 billion) in the last three months of December.

Chief executive officer Charles Dunstone said the company would focus on generating cash and controlling costs this year as the economic environment continues to worsen. He added it expects to achieve headline earnings per share of 12 to 13 pence.

The company, which set up a mobile phone and retail joint venture with the U.S. electronics retailer Best Buy Co. last year, said the mobile phone handset market was declining but sales had been strong over Christmas. Same-store revenues rose 6.5 percent, but were down 1 percent when currency fluctuations were taken into account.

Carphone Warehouse shares rose 2.8 percent to 102 pence ($1.49) at midday, on the back of the steady report.

The company said its retail section had achieved over 30 percent market share in the prepay market. Overall, mobile connections were up 3 percent to 3.7 million. The company said same-store retail gross profit was up 3.8 percent or down 3.7 percent on a constant currency basis.

Revenues at the group's TalkTalk business, which provides telephone and broadband services, were down 2 percent to 347 million pounds. The company said growth in the broadband market is subdued and that its non-broadband base had also declined.

[puffin1] 15/1/2009 13:25

Just took a nice profit on this mornings buy (94--107)but still hold from sub 100p think this may turn out a winner for 2009 !

[puffin1] 10/1/2009 13:48

Trading update on the 17 Jan might give some info where Talk Talks future is !

[highlands] 07/1/2009 14:28

with bad news / negativity coming out of the U.S. and profit taking I expect this to retrace back to below 100p.

[puffin1] 07/1/2009 10:08

See there is a short squeeze on colt now, could do with one on CPW! (i hold colt)
DYOR

[puffin1] 06/1/2009 16:51

Highlands,
thought that's what you meant. (unless you hit the magic mushrooms !)

[highlands] 06/1/2009 13:05

sorry I did mean £1.50

[puffin1] 06/1/2009 12:09

Highlands,
Those are my thoughts but i make that 150p And should we show any sign of a split of Talk Talk 200p no problem.

[highlands] 06/1/2009 11:32

Worth at least £150 on fundamentals!!

[puffin1] 05/1/2009 10:59

Going the right way at long last,wonder what the plans for Talk Talk are and the value is.

[eric76] 04/1/2009 20:45

Only worth 75p on fundamentals.. you know thats exactly what I keep thinking about pan african. lol