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Carphone Warehouse Group plc
Annual Report 2014
70
FINANCIAL STATEMENTS
Notes to the Group financial statements continued
2 OPERATING SEGMENTS
a) BASIS FOR SEGMENTATION
IFRS  ‘Operating Segments’ requires that operating segments mirror the segments that are routinely reviewed by the Board, andwhich
are used to manage performance and allocate resources.
Following the acquisition of CPW Europe, the Group's wholly owned operations consist of two segments, being the UK and Ireland and
Mainland Europe (comprising operations in France, Germany, the Netherlands, Portugal, Spain and Sweden). This classification is consistent
with the management structure of the Group, and the way in which information is reported to the Board. Connected World Services, our BB
business, is not considered to be a separate segment since its operations are currently integrated with those of our retail business in each
market, and are therefore not separable. Virgin Mobile France has previously been reported separately as it has a distinct and separate
management team and discrete financial information. In light of the Group's intention to sell this business, Virgin Mobile France is now reported
as a discontinued operation and its results are therefore excluded from the segmental results analysis below. Details of its profits and losses
are provided in note .
The Group’s reportable segments under IFRS  are as follows:
Reportable segment Operations
UK and Ireland Retail, distribution, insurance and telecoms services in the UK and Ireland
Mainland Europe Retail, distribution, insurance and telecoms services in Mainland Europe
CPW Europe Retail, distribution, insurance and telecoms services when held by the Group as a joint venture
Virgin Mobile France MVNO
b) SEGMENTAL RESULTS
Segmental results for continuing operations are analysed as follows:
CPW
Joint ventures
(see note 24)
CPW
Europe Virgin
UK and Mainland (to 26 June Mobile
Ireland Europe 2013) France Unallocated* Total
2014 £m £m £m £m £m £m
Headline revenue** 1,470 1,035 — — — 2,505
Headline EBIT before share of results of joint ventures 126 7 — — — 133
Share of Headline results of joint ventures (post-tax) — — 3 — — 3
Headline EBIT 126 7 3 — — 136
Exceptional items*** (11) (4) — — — (15)
Amortisation of acquisition intangibles*** (10) (6) — — — (16)
French operations (in process of closure)*** —(6) (23) — — (29)
Statutory EBIT (segment results) 105 (9) (20) — — 76
Assets 1,841 455 —11 —2,307
Liabilities (828) (309) — — (290) (1,427)
Net assets 1,013 146 —11 (290) 880
Capital expenditure 60 8 — — — 68
* Unallocated liabilities reflect the loans and other borrowings of the Group.
** Non-Headline revenue of £71m (2013: nil) relates to operations in France.
*** See note 4 for further details.
Included within UK and Ireland and Mainland Europe revenue is income from two MNOs of approximately £m and £m respectively.
No other customers or MNOs represent more than % of the Group’s revenue.