AGM and Q1 Results

Carphone Warehouse Group PLC
28 July 2005


Thursday 28 July 2005

Embargoed until 0700 hours


                        The Carphone Warehouse Group PLC

                          First Quarter Trading Update

                            Group revenues up 23.3%

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 2 July
2005.

Distribution

  • Retail revenues up 17.0% to £259.2m, 3.1% like-for-like
  • Retail gross profit up 17.0%, 3.0% like-for-like
  • Total connections up 19.0% to 1.45m
  • Subscription connections up 20.4% to 0.72m
  • 75 new stores opened, taking the portfolio to 1,536
  • Insurance base up 24.0% to 1.70m

Telecoms Services

  • Opal revenues up 3.4% to £59.9m; up 17.3% ex premium rate
  • 990,000 TalkTalk UK customers; line rental to launch in August
  • Mobile customer base up 20.7% to 2.42m
  • Strong performance from MVNO operations


Charles Dunstone, Chief Executive Officer, said:

'Progress so far this year has been ahead of our expectations.  The mobile
market environment continues to benefit our model and growth in subscription
connections has picked up from the fourth quarter.  We have recently hit the one
million customer landmark for TalkTalk in the UK and will be launching our line
rental service in August.  Furthermore, our MVNO strategy is beginning to gain
momentum as we identify niche services in a fragmented market.'

Distribution

Total connections grew by 19.0% to 1.45m in the first 13 weeks of the year,
driven by strong demand in all categories.  Subscription connections grew by
20.4% to 0.72m and pre-pay connections (including SIM-free) grew by 17.7% to
0.73m.   Growth in our Online business was particularly strong, driven in
particular by our continued expansion into the 'off-the-page' market.

Within Retail, revenues grew by 17.0% to £259.2m.  Like-for-like revenue growth
was 3.1% and like-for-like gross profit growth was 3.0%.  Average gross profit
per connection rose as a result of a strong new subscription mix and a recovery
in pre-pay profitability.  We opened 75 net new stores in the period, taking the
total to 1,536, compared to 1,279 at June 2004.

Our Insurance customer base grew by 24.0% year-on-year to 1.70m and Insurance
revenues grew 17.2% to £27.7m.  Ongoing revenues grew 14.6% to £13.1m against a
very strong quarter last year, supported by continued good subscription growth
across the group over the last twelve months.

Telecoms Services

Total fixed line revenues increased by 32.8% to £125.0m.  Opal revenues grew
3.4% to £59.9m, with growth in non premium rate revenues of 17.3%.  Revenue per
minute continued to be depressed by the impact of the mobile termination rate
cuts in September 2004, and also by the continuing competitive environment in
parts of Opal's market.  Business traffic switched through the Opal network grew
by 38.7% to 1.69bn minutes.

Total TalkTalk UK revenues were £42.9m, up 86.8% year-on-year. TalkTalk UK had
990,000 tolling customers at the end of the quarter, up from 511,000 at the end
of June 2004.  The base has passed the one million customer milestone during
July.  During the period we adopted a more selective approach to customer
acquisition, with a focus on the higher quality channels.  Monthly contribution
per customer continued to be in line with expectations.

In August we will be launching our own line rental service, thus allowing our
customers to receive a single bill from TalkTalk.  We have started to trial our
own internal field sales force and have recently signed up as a partner to the
Nectar loyalty scheme.  We expect all of these initiatives to reduce recruitment
and retention costs, while allowing us to continue to pursue an aggressive
customer growth strategy.

Our broadband base grew to 62,000 as we develop and refine the customer
proposition.  Broadband is strategically important to both TalkTalk and Opal,
and as the likely longer term regulatory environment becomes clearer as the year
progresses, we will evolve our strategy towards more rapid customer recruitment
and the most effective means of broadband service delivery.

Non-UK TalkTalk revenues, including N Tel, were £15.0m.  The base grew to
200,000 from 170,000 at the year end, and we have now launched TalkTalk in
Belgium and Ireland.

Mobile revenues increased by 16.7% to £104.7m.  The Phone House Telecom revenues
were up 18.2% year-on-year to £82.6m, reflecting sustained growth in customer
numbers over that period.  The customer base grew by 30.5% to 925,000, with the
subscription base growing by 23.7% to 689,000.  We have recently reached a
number of new third party distribution agreements that will allow us to continue
to drive further strong base growth.

Other mobile revenues rose by 11.3% to £22.1m.    Our FM base in the UK and
France grew by 9.5% to 1.31m.  Meanwhile our MVNO base rose by 61.1% to 189,000
as Fresh benefited from our aggressive tariffs, and our two new propositions,
Breizh Mobile and Mobile World, both began to gain traction.  We have been very
encouraged by the performance of our MVNO businesses this year and believe that
we will be able to pursue further opportunities in the medium term.

Board changes

As previously announced, David Goldie, Chief Operating Officer, Telecoms, will
today be appointed to the Board as an Executive Director.  In addition, we are
pleased to announce the appointment of David Mansfield, Chief Executive of GCap
Media plc, as a new Non-Executive Director, effective from 29 September 2005.
David Ross, Deputy Chairman, has decided to move to a Non-Executive role to
reflect his increasing external business commitments.

The Board is actively engaged in attracting additional Non-Executive Directors
and expects to make further announcements in due course.

Conference call

There will be a conference call for investors and analysts at 9.00 am this
morning.   The dial-in numbers are 0845 301 4094 in the UK and [phone]
for international callers.  A replay will be available for seven days, for which
the dial-in number is [phone].  The account number is 897311 and the
recording number is 496646.  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 12 October 2005, and publish its interim results on 3
November 2005.

For Further Information

For analyst and institutional enquiries

Roger Taylor                                             07715 170 090
Peregrine Riviere                                        07909 907193

For media enquiries

Vanessa Tipple                                           07947 000 021

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

Operating and Financial Statistics

•       Revenues (£000s)

                                                13 weeks to 2 July 2005

                                                2005                2004        % change
Distribution
Retail                                       259,190             221,534           17.0%
Online                                        44,745              21,564          107.5%
Insurance                                     27,661              23,593           17.2%
Ongoing                                       13,055              11,396           14.6%
Total                                        344,651             278,087           23.9%

Telecoms Services
Mobile                                       104,671              89,721           16.7%
Fixed Line                                   125,042              94,127           32.8%
Total                                        229,713             183,848           24.9%

Wholesale                                     34,201              31,186            9.7%

Eliminations                                 (4,904)             (3,557)           37.9%

Group Total                                  603,661             489,564           23.3%


•       Like for like data
                                                 13 weeks to 2 July 2005

                                           Revenue                   Gross Profit

Group                                        3.1%                        3.0%


•       Connections, mix and store numbers

                                                 13 weeks to 2 July 2005

                                                2005                2004        % change
Connections
Subscription                                 724,216             601,597           20.4%
Pre-pay                                      620,585             517,915           19.8%
SIM-free                                     107,477             100,800            6.6%
Group                                      1,452,278           1,220,312           19.0%

Own stores                                     1,449               1,246           16.3%
Franchises                                        87                  33          163.6%
Total stores                                   1,536               1,279           20.1%


•       Customer bases

                                                         As at 2 July 2005

(000s)                                               2005            2004        % change
Insurance                                           1,703           1,374           24.0%
Telecoms Services - Mobile                          2,421           2,005           20.7%
TalkTalk UK                                           990             511           93.7%
Broadband UK                                           62               -               -
TalkTalk non-UK                                       200               -               -


•       Switched minutes


                                                      13 weeks to 2 July 2005

(m)                                                  2005            2004        % change
Opal                                                1,692           1,220           38.7%
TalkTalk                                            1,358             707           92.0%
Total                                               3,050           1,927           58.2%




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