Carphone Warehouse reported annual EPS of 15.0 pence, up over 80 percent from a year earlier and at the top of its guidance. EBIT for the year to 31 March rose 67 percent to GBP 63.3 million, driven by a move to profit at Virgin Mobile France and the company's share of profits from the Best Buy Mobile chain in the US. The company will pay its first dividend, of 5.0 pence per share. CPW Europe, which includes the Phone House and Carphone Warehouse chains in Europe, reported like-for-like revenue growth of 0.9 percent, led by the UK and postpaid businesses. Connections fell 5.2 percent, from 12.5 million to 11.8 million, due to weakness in prepay and the shift to 24-month from 18-month contracts in the UK from mid-2009. The number of stores was little changed over the year at 2,429, with 106 of the larger Wireless World shops open at year-end. EBIT for CPW Europe rose to GBP 134.6 million from GBP 114.4 million a year earlier. The Best Buy chain in the UK reached ten stores open, and the company said customer feedback during the launch period has been "highly encouraging". Still, Best Buy UK incurred EBIT losses of GBP 62.2 million in the year due to start-up costs. The EBIT contribution from Best Buy Mobile in the US was more positive, growing to GBP 97.9 million from GBP 46.4 million a year earlier. For the year to March 2012, the company expects connections to fall around 0.5 percent at CPW Europe, due to the weakness in prepaid and fewer upgrades in the UK. Like-for-like sales are estimated in a range of down 2 percent to up 2 percent. Any weakness should be offset by growth in the Wireless World stores and 2-3 percent in retail space, with EBIT forecast at GBP 135-150 million for the year. EBIT from the US chain is expected to grow 20-30 percent, thanks to an additional 150 stores planned and estimated 20 percent increase in connections. For Best Buy UK, the company said it still finalising its plans for the further development of the business.
