Carphone Warehouse 2011 Annual Report Download - page 27

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2
Carphone Warehouse Group plc Annual Report 2011 23
BUSINESS REVIEW
VIRGIN MOBILE FRANCE: STRATEGY AND KPIs
BUSINESS REVIEW
Strategy KPIs
1
GROW BASE TO REINFORCE
POSITION AS #1 MVNO
Targeting over 2m customers
• The business is well on track to meet its long-standing 2m
customer target this year.
• Our aim is to maintain this growth to continue to improve
the business’ scale and strategic position.
Expanding our own distribution,
and third party distribution
• The business continues to develop its third party distribution
channels, including mobile and consumer electronics
specialists, and generalists and hypermarkets.
• It also has 28 Virgin Mobile branded stores, in store-within-
a-store and stand-alone store formats, and is targeting
further stores in the current year. Together with its well-
established online platform, this will help to provide further
distribution capacity.
IMPROVE PROFITABILITY
AND CASH GENERATION
Increase scale benefits
• After several years of investment and growth, the business
is now seeing the benefits of scale and achieving strong profit
and cash generation.
• We are targeting an EBIT margin of 10% over time.
• We are embarking on the development of a fuller MVNO
infrastructure, which will result in greater flexibility, better
speed to market and a lower cost base. (23) (17) (23) (22)
21
HEADLINE EBIT PROGRESSION £M
2007 2010 201120092008
470
805
1,114
1,715 1,917
EVOLUTION OF THE BASE 000
2007
2007
2010
2010
2011
2011
2009
2009
2008
2008
29 87
139
233
328
5 YEAR REVENUE GROWTH £M
SALES
PERFORMANCE
EBIT PERFORMANCE