Carphone Warehouse 2001 Annual Report Download - page 4

The Carphone Warehouse’s success is based on our ability to
offer simple, impartial advice and deliver award winning customer
service through a broad range of distribution channels and
after-sales care. In addition, our European scale enables us to
leverage our relationships with networks and handset
manufacturers; and through our operational infrastructure we are
able to continue our growth and maximise future returns.
This formula has again produced very strong results. Turnover
and EBITDA increased by an impressive 59% and 60% to £1,110.7
million and £66.0 million respectively. In line with previous years
our results continue to reflect our business seasonality between
the first and second half of the year with over 75% of earnings
being achieved in the six months to March 2001.
Within our Distribution business we now have over 1,050
stores across Europe. All areas of the Distribution business
including Retail, Online, Insurance and Wholesale have enjoyed
considerable growth and success. Highlights include the
integration of the Tandy portfolio within the UK business, the
ongoing development of market leading positions in France, Spain,
Belgium, The Netherlands, Ireland, Portugal and Sweden, and
significant investment in other markets such as Germany. In
addition, our Online channels through transactional websites and
our call centres have exceeded our expectations.
The differentiating factor in our Distribution business has been
our ability to attract and retain high value customers. These higher
spending customers are critical to our success and to that of the
networks and handset manufacturers. Over the last 12 months,
in a consumer market dominated by pre-pay, we have continued
to perform strongly by attracting a considerably higher percentage
of valuable subscription based customers than the market as
a whole. We have been able to do this and will continue to do so
through our focus on customer service, the strength of our brand
and our operational infrastructure.
As mobile phone penetration increases and mobile internet
capabilities expand, customers will increasingly replace and
upgrade their existing mobile phones. The network operators in
Chairman’s statement
2The Carphone Warehouse Group PLC Annual Report 2001
turn will focus on attracting and retaining high value customers
rather than purely on customer acquisition. Our proven track record
in providing services that attract valuable customers ideally positions
us to take advantage of this changing market environment.
Our commitment to customer service has always looked beyond
the point of sale. We invest in our customer care services, provide
Lifeline insurance products and other value-added services such as
trade-in offers, a 14 day repair pledge and ultimate price promises.
Over the last 12 months we have further strengthened our
after-sales customer relationships through the successful
establishment of our Telecoms Services division. Currently managing
a base of over 214,000 customers, the division comprises facilities
management with services such as billing and revenue management
on behalf of leading network operators and our own mobile virtual
network operator (MVNO). In the future we will be looking to
expand this business model across Europe.
The outlook for new technologies is tremendously exciting,
as is the recent launch of GPRS (always-on mobile internet
services). We believe that it will be those who are able to offer
innovative data and tailored content services beyond traditional
voice that will succeed in this new environment.
As a result during the period we have continued to develop our
Wireless Data Services division, predominantly through MViva, our
pan-European wireless internet portal. This division is focused on
establishing the infrastructure and innovative content from which
to maximise the potential from these new technologies.
To date MViva has attracted over 220,000 customers who
access customised, relevant information directly from their mobile
phones and PDAs (Personal Digital Assistants) on a regular basis.
Over the coming months we will concentrate on offering additional
data services such as text messaging, ring-tones, icons and audio text.
Through delivery of distribution, telecoms and wireless data
services, we are uniquely able to offer customers the complete
spectrum of mobile communications, from point of sale, after-sales
support and billing processes to providing tailored content, new
technologies and additional innovative services.
Clearly as retention of high value customers becomes the priority
for both distributors and networks so this ability to offer a total
customer solution will become increasingly important to our business.
This is demonstrated by the newly launched FT Mobile, a
commercial joint venture between The Carphone Warehouse and
The Financial Times to offer a customised phone package for high
spending subscribers.
MViva has attracted over 220,000
customers who access customised,
relevant information directly from their
mobile phone
Our commitment to customer service
has always looked beyond the point of
sale and we have further strengthened
our after-sales customer relationships
through the establishment of our Telecoms
Services division
Our proven track record in providing
services that attract valuable customers
positions us ideally to take advantage of
the changing market environment