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Carphone Warehouse March quarter results: Prepay declines continue to weigh - Venture Insights

Report Overview

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Carphone Warehouse March quarter results: Prepay declines continue to weigh

PublisherEnders Analysis.
Publish Date May 9, 2012
Sector Fixed Line (Internet and Voice), Mobile and Wireless Technology.
Company Orange, Telefonica, vodafone.

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CPW’s key operating metrics worsened again in the March quarter, with connection volume growth dropping to -19% and like-for-like revenue growth dropping to -5.5%.

Weakness in the UK prepay market continued to affect CPW’s results, with volumes again down 30-40%, but contract sales did not mitigate this as much as last quarter, with growth in the UK but declines in continental Europe.

Prepay is not likely to improve until the end of 2012, as the volume decline annualises out and more smartphones are available at prepay price points, and contract recovery is dependent on economic recovery.