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Carphone broadband sales slow – Where next?

The Carphone Warehouse recently released its 4th quarterly results, but new broadband connections were below expectations.

In its trading update, it said it added 109,000 net broadband connections, giving the company a total of 2.7M broadband customers.  It took 118,000 customers in the previous quarter.

A large number of its broadband customers have been migrated from BT Wholesale to its own LLU network.  The customers on its own broadband network produce a profit per customer rather than a loss when they were on BT’s Wholesale network.  There are now just 8,000 customers loss-making customers left to migrate.

Charles Dunstone, Chief Executive Officer, said: “Our performance over the last three months has been good in a slower consumer environment. In our Distribution business, continuing network competition and growing demand for mobile broadband have been key drivers.”

Levels of debt have also increased for the company.  It blames fluctuating currency values and increased network investment.  The AOL free laptop offer has also contributed to rising costs.

In the last day, it has been reported that two senior figures have quit at Carphone Warehouse.  UK chief executive Andrew Harrison asked Chief operating officer John Durkan and retail managing director Anthony Catterson to step down from their current roles.  Both were offered new roles, but they turned them down and have subsequently quit the company.