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UK 3G market to gain momentum in Q2

January 16, 2005

The Carphone Warehouse enjoyed a good Christmas period in the UK on the back of prices slashed to levels not seen for five years. Charles Dunstone, the chief executive, said the biggest growth had been in pre-paid mobile phones, which were up 33% to 1.31 million connections.

Revenue was up 24.9% to £355.8million and the opening of 95 stores would drive sales growth in the first three months of 2005. Dunstone said, "Looking ahead, we believe market conditions will continue to play to our strengths, and we are confident of delivering a full year result ahead of current consensus market expectations."

New 3G mobile phones accounted for 20% of the company's Christmas sales but the 3G market in the UK will not take off for a further six months. The company is expecting take-up of 3G phones to "gain significant momentum" in the second half of the year.

So far, only 3, Vodafone and Orange have launched 3G services in the UK. T-Mobile and mmO2 have yet to launch the service.

Carphone Warehouse also reported that its fixed line TalkTalk service has attracted 114,000 customers in the latest quarter with revenue reaching £32.million.

 

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