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To: S100 who wrote (111417)	1/23/2002 12:30:58 PM
From: S100	Respond to of 152472

Looking "good" for GSM and GPRS? Carphone shares fall 17% after profits warning By Jonathan Loades-Carter in London Published: January 23 2002 08:59 \| Last Updated: January 23 2002 15:21 Shares in Carphone Warehouse fell 17 per cent on Wednesday after Europe's largest mobile phone retailer said sales and margins declined in the third quarter and warned that weak mobile markets would impact on full-year earnings. The group reported a 9 per cent drop in like-for-like sales and a 6 per cent fall in gross margins for the quarter to December 31. It also warned that full-year earnings before interest, tax, depreciation and amortisation would fall as much as 10 per cent below market expectations. Consensus estimates had put pre-tax profits at £57.1m. Like-for-like Christmas sales fell 12 per cent, while the number of new connections were also down, falling to 1.15m in the third quarter, compared with 1.22m last year. The news was the latest in a string of indicators pointing to a saturation in the mobile phone retail market and sent Carphone Warehouse shares down 20p to 93p. Last week Dixons and Woolworths, the UK high street retailers, said their Christmas profits had been dented by a sharp drop in mobile phone sales, with Dixons reporting a 50 per cent decline. Carphone fared better in the UK, where it increased its market share to 20 per cent as supermarkets and general retailers pulled out of the market and high street rivals, such as The Phone People and The Wap Store closed down. In the UK, gross margins were up 2 per cent while sales fell 5 per cent. In Europe new connections fell from 529,000 to 484,000 and like-for-like margins and revenues both fell by 16 per cent due to a poor performance in Germany, Belgium and the Netherlands. Charles Dunstone, chairman and chief executive, said the company was holding up well in the European handset market, which is estimated to be down by more than 40 per cent. But he admitted the situation would remain tough for the next six months. Mr Dunstone said Carphone Warehouse was not as exposed as other retailers to a steep fall in demand for new connections as it had always focused on the replacement market and high value customers, on which operators are now focused. However, the group, which has been aiming to increase sales of subscription connections compared with less lucrative "pay-as-you-go" phones, said its prepay/subscription mix had suffered from "innovative prepay offerings". Mr Dunstone said wholesale revenues, which fell more than 40 per cent, were not expected to show any improvement for at least the next twelve months as they were more exposed to the over all market. Looking ahead, Mr Dunstone said that although 2002 would be a flat year, with the company aiming to consolidate its market share, but he believed the market would be stimulated by new competition when 3G phones began to appear in the shops in the autumn. news.ft.com

To: S100 who wrote (111417)	1/23/2002 12:34:36 PM
From: golfinvestor	Read Replies (1) \| Respond to of 152472

<Kind of fun to read the "doom and gloomers" posts. Always seem so sure of themselves.> Agreed. Also, probably trying to convince themselves in the process.