1st Quarter Results

Carphone Warehouse Group PLC
26 July 2007


Thursday 26 July 2007

For immediate release


                        The Carphone Warehouse Group PLC

                          Interim Management Statement

                        First Quarter Revenues up 21.7%


The Carphone Warehouse, which is holding its AGM today at 11.00 am, announces
its first quarter trading update.  Figures relate to the 13 weeks to 30 June
2007.


Distribution

  • Distribution revenues up 11.7% to £706m
  • Retail revenues up 12.9% to £445m, 3.6% like-for-like
  • Retail gross profit up 2.1% like-for-like
  • Total connections up 19.9% to 2.3m
  • Subscription connections up 15.0% to 1.0m


UK Fixed Line

  • UK Fixed Line revenues up 49.5% to £345m
  • Revenues up 7.1% excluding the AOL acquisition
  • 2.4m broadband customers, with 126,000 net adds in the quarter
  • 966,000 customers, equivalent to 40% of the base, on unbundled lines
  • Further good progress expected in Q2


Charles Dunstone, Chief Executive Officer, said:

'We have started the year well.  The Retail business is enjoying good growth and
we continue to take market share.  Our broadband operations are making good
progress, with the levels of sales and migrations giving excellent visibility of
future profitability.

'Customer demand for broadband and wireless solutions for the home is still
increasing. With the further enhancements to our broadband services we are
planning over the coming months, such as our new partnership with Dell, we are
excited about the future.'


Distribution

Total Distribution revenues were up 11.7% to £706m, driven by continued strong
connections growth and good performances from ancillary revenue streams.

Total connections grew by 19.9% to 2.3m in the first 13 weeks of the year.
Subscription connections grew by 15.0% to 1.0m and pre-pay connections
(including SIM-free) grew by 23.8% to 1.4m.   Retail revenues were up 12.9% to
£445m.  Like-for-like Retail revenue growth was 3.6% and like-for-like gross
profit growth was 2.1%, with gross profit per connection robust on both
subscription and pre-pay.  The stores continued to perform very well, but
overall rates of growth were negatively impacted by a much weaker market
environment for direct response newspaper channels in the UK.  At this stage we
anticipate that this trend will continue through the rest of the year.

We added 133 net new stores in the period, taking the total to 2,277, compared
to 1,855 at June 2006.  73 of these new stores relate to the Osfone acquisition
in Portugal in April 2007.

Insurance and Ongoing continued their good momentum, driven by sustained growth
in subscription connections.  Revenues were up 23.2% and 33.4% respectively,
with the Insurance customer base growing 19.2% year-on-year to 2.3m.

Mobile revenues rose 9.1% to £129m, with continued steady growth at The Phone
House Telecom being the main driver.  The Phone House Telecom customer base was
up 28.5% to 1.6m year-on-year, with subscription customer ARPU falling 6.9%, or
5.6% at constant exchange rates, to £23.0.


UK Fixed Line

UK Fixed Line revenues were up 49.5% to £345m, and up 7.1% excluding the AOL
base acquisition.  Business revenues fell 3.3% year-on-year, reflecting a sharp
decline in low margin revenue from premium rate phone line competitions.
Excluding premium rate, revenues rose 6.2% to £71m.

Residential revenues were up 77.9% to £267m, and up 12.6% excluding AOL.  We
recorded 126,000 net customer adds to our broadband base, taking the total to
2.4m.  We also made excellent progress with line migrations, so that by the end
of June we had 966,000 customers, or 40% of our broadband base, on our own
network.  We expect to make continued strong progress through the rest of the
year, as previously guided.  Blended broadband ARPU was £21.2, a figure that
will continue to rise through the year as the proportion of TalkTalk customers
within the base increases, and as the new Dell laptop offer begins to take
effect in early September.

Our total base of voice customers, including those with a broadband service,
remained constant at 2.7m.  Our base of non-broadband telecoms customers was
2.2m at the period end, reflecting a net loss of 91,000 voice-only customers.
ARPU of £18.0 was in line with plan and is set to rise through the year.

We continued to make good progress on the development of our next generation
network, and by the end of June we had 1,247 fully unbundled TalkTalk exchanges
and 465 partially unbundled  AOL exchanges.  The project to integrate backhaul
across both networks is nearly complete and the next few months will see a
significant acceleration in the AOL exchange roll-out programme.


Conference call

There will be a conference call for investors and analysts at 9.00 am this
morning.   The dial-in number is + 44 20 8611 0015, with a Freephone number of 1
866 432 7175 for US callers.  A replay will be available for seven days, for
which the dial-in number is [phone], or Freephone 1 866 583 1035 from
the USA.  The access code is 906424.  The conference call will also be webcast
at www.cpwplc.com.


Next trading update

The group will issue a first half trading update, covering connections and
customer numbers, on 10 October 2007, and publish its interim results on 8
November 2007.


For Further Information

For analyst and institutional enquiries
Roger Taylor                                                       07715 170 090
Peregrine Riviere                                                  07909 907193

For media enquiries
Mark Schmid                                                        07920 484 787
Shane Conway                                                       07932 199 659

Anthony Carlisle (Citigate Dewe Rogerson)                          07973 611 888
                                                                   020 7638 9571



Operating and Financial Statistics

Revenues

£m                                               13 weeks to 30 June 2007

                                                 2007                2006       % change
Distribution
Retail                                            445                 394           12.9%
Insurance                                          39                  32           23.2%
Ongoing                                            21                  16           33.4%
Mobile                                            129                 118            9.1%
Non-UK Fixed Line                                  27                  26            3.3%
Dealer                                             45                  46          (2.2%)

Total                                             706                 632           11.7%

UK Fixed Line
Business                                           78                  81          (3.3%)
Residential                                       267                 150           77.9%

Total                                             345                 231           49.5%

Eliminations                                      (7)                 (5)           48.0%

Group Total                                     1,044                 858           21.7%


Like for like data
                                                13 weeks to 30 June 2007

                                           Revenue                   Gross Profit

Retail LFL                                   3.6%                        2.1%


Connections, mix and store numbers
                                                13 weeks to 30 June 2007

                                                2007                2006        % change
Connections (000s)
Subscription                                     984                 856           15.0%
Pre-pay                                        1,231                 994           23.8%
SIM-free                                         134                 108           23.5%

Group                                          2,349               1,958           19.9%

Own stores                                     2,078               1,700           22.2%
Franchises                                       199                 155           28.4%
Total stores                                   2,277               1,855           22.7%


Customer bases
                                                        As at 30 June 2007

(000s)                                               2007            2006        % change

Insurance                                           2,311           1,938           19.2%

TPHT base                                           1,560           1,215           28.5%
TPHT subscription ARPU (£)                           23.0            24.7          (6.9%)
UK MVNO base                                          452             383           17.9%

Broadband base                                      2,397             284             N/M
Of which unbundled                                    966               -             N/M
% unbundled                                           40%               -               -
ARPU                                                 21.2             N/A               -

Other billed customer base                          2,216           2,318          (4.4%)
ARPU                                                 18.0             N/A               -






                      This information is provided by RNS
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