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Carphone Warehouse share price jumps on half-year report, Thursday, November 14: Shares in Carphone Warehouse (LON:CPW) jumped this morning after Europe’s biggest independent mobile phone retailer reported improved half-year sales and earnings performance and confirmed it is on track to fulfil its full-year guidance. The Carphone Warehouse share price traded at 275.48 pence at 10.18 UTC, up 7.6 percent from yesterday’s close. This is also its highest level so far this year.

Carphone Warehouse said like-for-like sales for the 26 weeks to September 28 rose 8.3 percent, significantly higher than a 1.6 percent growth in the same period last year, thanks to strong post-pay connections growth, while the prepay market remained weak. The contract market has also shown encouraging signs for the uptake of 4G. Revenue grew 5.8 percent to £1.57 billion. Group headline pre-tax profit soared to £19 million from £4.0 million a year earlier, while headline earnings before interest and taxes (EBIT) jumped to £21 million from £6.0 million. Exceptional French costs of £31 million and net acquisition-related costs of £13 million resulted in a statutory pre-tax loss of £25 million, compared to a profit of £8 million last year. The company has restated its H1 2012/13 results to exclude the results of its French business following the decision to pursue an exit from the market.

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CEO Andrew Harrison commented: “Carphone Warehouse has delivered good like-for-like growth for the half and for the fifth successive quarter. This is a strong performance given the reduced marketplace activity ahead of the wider launch of 4G across Europe and the continued double-digit decline of the prepay market. We have increased market share and grown EBIT year-on-year.” He reiterated the company’s full year guidance of headline EPS of between 17 pence and 20 pence, saying it is “in excellent operational shape to take advantage of the key Christmas trading period and [is] encouraged by the growth of 4G as it starts to arrive across all the major networks.”

The retailer, which has around 2,400 stores across Europe, declared an interim dividend of two pence per share, up from 1.75 pence per share last year.
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**Analysts on Carphone Warehouse**
Carphone Warehouse has a consensus rating of ‘buy’ and an average target price of 250.71 pence. Deutsche Bank has a ‘buy’ recommendation on the stock with a price target of 285 pence, Citigroup has also rated the share as ‘buy’ with a price target of 290 pence, and Bank of America has a ‘buy’ rating as well with a price target of 275 pence.
**As of 10:03 UTC buy Carphone Warehouse shares at 276.00p.**
**As of 10:03 UTC sell Carphone Warehouse shares at 274.50p.**
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