Carphone Warehouse 2014 Annual Report Download - page 20

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Carphone Warehouse Group plc
Annual Report 2014
18
STRATEGIC REPORT
VIRGIN MOBILE FRANCE
In May 2014 the shareholders of Virgin Mobile France entered into an exclusivity
agreement for its sale to Numericable Group.
Founded in 2006, Virgin Mobile France is the largest MVNO in the French market,
with areputation for innovation and high-quality customer service, offering a wide
range oftariffs and contract options, catering for a broad range of customer needs.
OVERVIEW
OWNERSHIP
A joint venture with Virgin Group (% each), with remaining
interests (%) held by management. Virgin Group was founded
byentrepreneur Sir Richard Branson and operates across a range
of sectors globally.
MANAGEMENT STRUCTURE
Experienced management team, led by chairman Geoffroy Roux de
Bézieux and chief executive officer Pascal Rialland. Geoffroy joined
Carphone Warehouse in  and was a member of the Old Carphone
Warehouse board before leaving to set up this venture, in which he
is also a minority shareholder. Pascal joined Virgin Mobile France in
 having previously worked at SAP, SFR and Xerox. A shareholder
board meets formally on a regular basis to agree strategy and
review performance.
FUNDING
Funded primarily through shareholder loans, which are provided
inproportion to each party’s shareholding, supplemented by a third
party finance lease facility.
DISTRIBUTION
Strong distribution network with over , third party handset
sales points, some , distribution points for prepay vouchers,
aportfolio of Virgin Mobile branded stores, andawell-established
online platform.
NETWORK RELATIONSHIPS
Strong partnerships with Orange, SFR and more recently Bouygues
Telecom, all of which provide network infrastructure for the business.
Now offering G services on both the SFR and Bouygues networks.
FULL MVNO
The business has invested in the development of a Full MVNO
infrastructure, which enables it to participate more fully in customer
revenue streams, including termination revenues, and to reduce
itscosts. It also provides additional strategic flexibility by giving
thebusiness greater control of its customers. The business had
%of its customers on this infrastructure atMarch.
INNOVATIVE,
DIFFERENTIATED
AND COMPETITIVE
Revenue
£346M
Subscribers
1.7M
Full MVNO
77%
Joint ventures