Carphone Warehouse revenues rise 31%

Carphone Warehouse reported that revenue for the full year has increased by 31% to 3.9 billion pounds ($7.7 billion), while EBIT was up 5.4% to 149 million pounds ($297 million).

The company also reported that cash flow has increased by 30% to 256 million pounds ($510 million).

Further, the company said its EBIT is the 'anomaly' and has been is impacted by the costs of the free broadband offer in the UK, and their Virgin Mobile initiative in France.

Operationally the company opened 366 new stores and now has 2.3 million broadband customers, and 2.7 million voice customers.

Research firm Ovum said Carphone Warehouse is apparently trying to 're-invent' itself.

'The financial results generally speak for themselves. While we could highlight the financial drag of their French operations, or the performance of their Dutch stores, the real story here continues not to be in the financials,' Mike Cansfield, Ovum analyst, said.

Ovum also said this strategy to re-invent 'is beginning to produce results.'

 'Carphone Warehouse's ability to execute this vision will be a key indicator in showing whether high street retailers will be as important a channel in the converged world of the future as it has been to mobile growth over the past 15 years,' Cansfield said.

Ovum further said if this proves to be the case, then it may well signal a shift in market power away from telcos and into distributors.