Best Buy Europe's income to be 'at top end' of expectations

Co-owner Carphone Warehouse posts interim financial results
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Co-owner Carphone Warehouse posts interim financial results

Best Buy Europe’s full-year net income is expected to be around £40 million, co-owner Carphone Warehouse has said.

The retailer, which has a 50 per cent stake in Best Buy Europe, posted its interim financial results today. According to the statement, Best Buy Europe’s net income in the year to March 2010 is “expected to be at top end of our existing £30m to £40m guidance range”, with branded ‘big box’ electronics stores still on course to open in the UK next spring.

Carphone Warehouse saw its group revenue for the six months to 30 September rise to £789 million, a 13 per cent increase on the year before, but net profit plummeted to £20 million from £574 million.

TalkTalk, the internet service provider owned by Carphone Warehouse, generated pre-tax profits of £75 million.

Carphone Warehouse chief executive Charles Dunstone said: “Both TalkTalk Group and Best Buy Europe have traded well in the first half of the financial year. Each business has delivered a significant year-on-year improvement in operating free cash flow, with Headline EPS [earnings per share] at the top end of market expectations. As a result, we are raising guidance for the full year to March 2010.”

Dunstone added that the group is on track to demerge its retail and broadband arms by March.