Broadband problems knock Carphone Warehouse

02-04-2007

Broadband problems knock Carphone Warehouse
Europe's largest independent mobile phone retailer Carphone Warehouse has announced it expects to spend around £10-15 million on its broadband customer services.

TalkTalk, the company's broadband service, was launched last April but was plagued with technical delays, leading to some customers waiting to be connected for many weeks.

With 2.27 million broadband subscribers the firm admitted it was "a little behind" its original business plan but predicted that "the current momentum of customer recruitment and migration" would allow the company to "make up the lost ground by the summer".

The London-based firm also announced it expects to invest around £10-15 million in brand development and customer recruitment for its joint venture with Virgin Mobile France.

However despite such outgoings Carphone Warehouse revealed that full year pre-tax profits would likely be in line with current market expectations.

"In the mobile market, the strength of our proposition means we have continued to increase sales and market share," said chief executive Charles Dunstone.

"As a result, despite the expected slower growth in the overall handset market, particularly in the pre-pay segment, we continue to show good growth year-on-year, despite last year's very strong comparables," he added.

The company's shares dropped by two per cent on early morning trading.



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