Carphone Warehouse confirms split plans

By

The Carphone Warehouse has confirmed plans to separate its mobile phone business from its TalkTalk fixed line and broadband operations.

The confirmation follow recent speculation that TalkTalk is to overhaul its brand positioning in its latest marketing campaign, ditching the tagline ‘Let’s do it together’.

In its fourth quarter results today (April 22), Carphone Warehouse says the timing of the separation would depend on how costly it is to split the group’s credit facilities. The split will create two listed firms, with Carphone founder Charles Dunstone set to be executive chairman of both.

It comes after TalkTalk reported it had added a net 74,000 broadband connections in the first three months of 2009 while mobile connections were up 12% to 3 million. Subscription connections were up 2% to 1.1 million.

In its trading statement Carphone Warehouse says that full-year earnings were set to be in-line with expectations.

“The macro environment will undoubtedly present challenges in the year ahead but at this stage we are not seeing it deteriorate further,” says chief executive Charles Dunstone.

He adds: “We are well funded, and have clear and simple strategies for our two businesses which balance growth with tight operational efficiency and cash generation.”

The group predicts that the coming year will see similar sales and profits to the year just completed.

Recommended

Fiat frontrunner to acquire GM marques

Marketing Week

Fiat and Canadian car parts company, Magna International, have emerged at the lead contenders to acquire a major stake in General Motors’s Vauxhall and Opel marques. Several reports have emerged that Fiat is in talks to acquire a stake of GM’s European operation, much of which is made up of Opel in Germany. Fiat chief […]

Shaun Bailey named DMA Agencies Council chair

Marketing Week

The Direct Marketing Association has named Shaun Bailey, managing director of Jacob Bailey, as its new elected chair of the DMA Agencies Council. He replaces former chair Chris Arnold, who stepped down in March after four year’s service. Bailey will formally accept his chairmanship at the council’s next meeting on 27 April. Carlson managing director […]

Building a brand rather than just launching a pill

Marketing Week

GlaxoSmithKline launched its weight loss drug Alli earlier this week in Europe with a marketing spend of £8.5m in the UK alone. But since the treatment can have pretty dramatic and unfortunate side effects, the company is hoping its potential obesity-busting effects will appear alluring enough to consumers to overcome any negative publicity. GSK consumer […]

Comments

    Leave a comment

    Marketing Week Jobs

    Latest from Marketing Week

    What caused Diddy to turn on Diageo?

    Mark Ritson

    After a successful and lucrative partnership on vodka brand Ciroc spanning more than 15 years, Sean Combs filed a law suit against Diageo this week, accusing the business of racism and neglect. Whatever the outcome, it looks like the end of the relationship.