Profit after tax at Best Buy Europe was up 31.0% year on year, at £38m for the six-month period, of which Carphone Warehouse’s share was £19m. Total earnings before interest, taxes, depreciation, and amortization were £103m, up 30.3% year on year.
Carphone Warehouse said in a statement: "We will continue to invest in our Best Buy proposition during this initial launch period, with greater marketing activity than initially planned."
Following the increased marketing commitment, the company now expects operating losses of between £50m and £55m from Best Buy UK.
Roger Taylor, chief executive of Carphone Warehouse, said: "Customer response to our Best Buy branded 'Big Box' stores has been overwhelmingly positive. With yesterday's launch of its transactional website, Best Buy gains national reach and is able to compete as a truly multichannel retailer."
Best Buy Europe, which includes the Carphone Warehouse and The Phone House stores in Europe, Best Buy Mobile in the USA and Best Buy stores in Europe, brought in revenue of £1.7bn in the six months to 30 September, down 0.4% year on year.
Like-for-like revenue growth at CPW Europe was 2.4%, on a constant currency basis, despite the economic backdrop, which, CWG said, reflected the strong demand for smartphones and associated products and services.
Taylor said a key growth driver was the "increasing popularity of smartphones", coupled with customers’ recognition of Carphone Warehouse’s "heritage of expertise and independent advice in explaining complex technologies".
Carphone Warehouse said like-for-like growth was largely driven by the UK business, following the trend from last year.
Taylor said: "We have delivered a strong first half with good performances across all our businesses, and we are raising our guidance for the full year."
As part of the ongoing joint venture between Carphone Warehouse and Best Buy, the first consumer electronic Best Buy stores opened in Essex and Southampton in May and the sixth store opens in Derby today (5 November).
_1.jpg)
.jpg)
