Carphone Warehouse taking cautious outlook
The first quarter results for Carphone Warehouse have also been released today, and they are announcing a cautious outlook, with expectations lower than originally anticipated. This quarter saw the TalkTalk brand gain a net 86,000 customers, but this fell to 41,000 when combined with AOL, leading to an expected growth of only 200,000 to 250,000 this year, down from original forecasts of 400,000. The AOL brand saw a drop of 45,000 customers, blamed on lack of customer recruitment whilst the migration from the AOL to TalkTalk platform takes place, and also due to 12,000 customers who were unable to migrate. Overall broadband customers are now at 2.8 million.
Carphone Warehouse have reported that customer churn is falling, and growth in broadband penetration is slowing, so they plan to increase focus on growing the average revenue per user (ARPU), which currently stands at £22.10 for broadband customers, up from £21.20 in 2007, by provision of value-added services. There has been a big change on the network side of things since 2007 when 966,000 of 2.4 million customers were unbundled. In 2008 this has grown to 1.9 million of the 2.7 million customers, a change from 40% to 70% of total customers being unbundled. The full details can be found on the Carphone Warehouse Group website.