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UPDATE 1-Carphone Warehouse sales get 4G boost

Tue, 21st Jan 2014 08:48

LONDON, Jan 21 (Reuters) - Carphone Warehouse,Europe's biggest independent mobile phone retailer, beatconsensus forecasts for third-quarter revenue growth at its mainCPW Group business, helped by growing sales of 4G superfastmobile broadband products.

Mobile operator EE, a joint venture between Frances' Orange and Deutsche Telekom, launched 4G intoBritain in late 2012, while rivals Telefonica's O2 andVodafone started services in August last year.

Take-up of 4G is being driven by rocketing demand for mobiledata.

"There is a real willingness for customers to move to 4G anda willingness for them to understand that data usage is going togo up in the future," Carphone Chief Executive Andrew Harrisontold Reuters on Tuesday.

"This time next year we should be looking at quite asignificant deployment within the market," he said, noting thatgrowing penetration of 4G was also driving a rise in incrementalaverage revenue per user (ARPU).

Shares in Carphone, up over a quarter in the last year, rose1.4 percent after the firm said sales at CPW Group stores openover a year rose 3.1 percent in the three months to Dec. 28.

That was a sixth straight quarter of like-for-like growth.It compared to analysts' consensus forecast of growth of 2percent and second quarter like-for-like growth of 3.6 percent.

CPW UK like-for-like revenue rose 5 percent during thequarter, building on growth of 16 percent in the same periodlast year.

The firm said its Virgin Mobile France joint venturemaintained its postpay customer base at 1.33 million, thoughrevenue fell 15.6 percent reflecting a declining overall market.

Carphone reiterated its full-year guidance for headlineearnings per share of 17-20 pence, up from 12.3 pence in the2012-13 year.

It also reiterated guidance for pro-forma headline earningsbefore interest and tax (EBIT) of 140-160 million pounds($230-263 million) for CPW Group.

Carphone shares were up 3 pence at 282.5 pence at 0846 GMT,giving a market capitalisation of about 1.6 billion pounds.

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