Carphone Warehouse predicts earnings rise

 

Carphone Warehouse, Europe's biggest independent mobile phone retailer, said earnings before interest and tax at its key European unit came in at the low end of its expectations, and forecast a slight rise in 2013.

The group said earnings before interest and tax (EBIT) at the European unit were £135 million in the year to the end of March, unchanged versus the previous year and at the bottom of the company's £135-150 million forecast range.

Revenues at the division were 5.5 per cent lower at £3.3 billion. It forecast headline EBIT of £135-150 million for next year.

European retailers are suffering as rising prices, subdued growth in wages, government austerity measures and worries about the euro zone debt crisis hurt consumer spending.

"Looking ahead, we expect the consumer environment in Europe to remain difficult, but we see opportunities as well as challenges and we are confident in our strategic positioning and operational execution," chief executive Roger Taylor said in a statement.

Revenue at the group's Virgin Mobile France unit grew 18.8 per cent to £390.2 million. The group said the French unit had shown itself to be "very robust" in the face of increased competition - Iliad launched its Free Mobile in January.

The group said it would pay a 3.25 pence final dividend, taking its full-year dividend to 5 pence.

Reuters