Carphone Warehouse 2006 Annual Report Download - page 12

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Performance Update
What we said we’d do in 2005
Retail and Online
• Open 250 new stores
• Invest in training and refurbishment
• Continue to drive growth in subscription connections
• Integrate recent Online acquisitions and pursue
aggressive growth in UK
• Develop non-UK Online operations
Insurance
• Grow the customer base
• Continue to improve service efficiency
through internal investment
Ongoing
• Grow Ongoing revenue by 20% through further
growth in subscription connections and focus
on network terms
How we performed
• 317new stores opened
• 300 stores refurbished
• 52 week subscription connections up 23.6%
• Acquisitions successfully integrated
• 52 week Online connections growth 61.7%
• Limited progress on non-UK Online operations
• Customer base up 16.7%
• High tier base up 24.1%
• Launch of IMACS, new database management tool
• Ongoing revenue up 25.6%, in line with
subscriptions growth
Our 2006/7objectives
• Open a further 250 new stores
• Differentiate proposition through handset range
• Continue to drive growth in
subscription connections
• Continue to explore non-UK Online opportunities
• Further base growth
• Improve penetration with new products
• Revenue growth of 15-20%
Our 2006/7objectives
• Further growth in subscription base
• Stabilisation of ARPU trend through focus
on higher quality channels
• Launch Mobile World in other markets
• Refine Fresh proposition to maximise customer
lifetime values
• Build towards target of 1m Virgin Mobile
customers within 3years
• Focus on local loop unbundling programme
to hit target of 1,000 exchanges by May 2007
• Leverage LLU platform to build corporate
broadband products
• Build on initial TalkTalk Business success
• Focus on rapid recruitment of
broadband customers
• Manage the successful migration of
customers onto unbundled lines
• Complete integration of Onetel acquisition
• Raise line rental penetration on voice
customer base to 60%
The Carphone Warehouse Group PLC Annual Report 2006
8
Distribution Division
What we said we’d do in 2005
Mobile – Service Provision
• Grow our market share
• Explore new distribution channels
Mobile – Other Operations
• Grow base of customers under management
• Diversify our MVNO offerings
Fixed – Business
• Launch mobile and broadband services
• Develop data products
• Explore new market segments
Fixed – Residential
• Continue to recruit new customers in all markets
• Refine UK broadband proposition and launch line
rental product
How we performed
• Customer base grew 30.0% to 1.2m
• Launched several new distribution channels,
although quality of new customers was mixed
• UK FM base rose 25.2% but Vodafone
contract expiring next year
• Successful introduction of Mobile World and
relaunch of Fresh
• Virgin Mobile France launched after year end
• Good progress with mobile services
• No material headway made on broadband
and data services
• Successful launch of TalkTalk Business to address
the small business market
• 2.6m UK customers – 10% market share – through
organic growth and acquisitions
• Non-UK base doubled to 341,000
• 28% of base on line rental
• Announcement of broadband proposition
after year end
Telecoms Services Division