Carphone Warehouse shares hit 2010 high on strong full year results

High-street mobile phone retailer Carphone Warehouse (LON:CPW) has upped its full year earnings for the third time in six months in a report this morning, sending their share price to a new high for the year.

Rob Hull - Monday, April 26, 2010

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Carphone Warehouse's share price rocketed as much as five per cent today

The mobile phone giant, which demerged from TalkTalk (LON:TALK) last year, hit a share price high of 204.50p this morning, up five per cent.

The sufficient increase came as the group announced earnings before interest and tax will rise between 15 and 20 per cent in the year ending March 2011 after increasing this year’s net profit to around £47m, more than the £40m it had predicted back in January.

And the Group has also predicted a similar earnings increase for its Best Buy electronics stores which it owns a 50 per cent stake in.

The first UK Best Buy store will open at the end of this month after a strong performance in the US, selling green technology products including electric cars, laptops and televisions.

Chairman, Charles Dunstone, said: “Carphone Warehouse Europe continues to trade strongly with like-for-like revenue up three per cent in the fourth quarter.

“Our full year results are ahead of expectations and our operating free cash flow is well ahead and represents a transformational improvement on the prior year.”

The group put the increases down to efficient cost cutting and the increase in sales of smart phones.

TalkTalk Telecom Group’s shares also rose today by as much as 2.5 per cent following the announcement.

TalkTalk became a separate entity from Carphone Warehouse in March 2009 so it could solely focus on providing broadband and home phone services.

Carphone Warehouse share price is currently 3.2 per cent up at 202p at 09:30BST.


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