British mobile phone retailer and telecoms group Carphone Warehouse cut its forecast for new broadband customers this year, and said it remained cautious about the outlook for consumer spending.
Europe's biggest independent mobile phone retailer, which also provides fixed-line telecommunications and broadband, said today it now expected to add 200,000 to 250,000 broadband customers this year and revenues at its UK fixed-line telecoms business to be broadly flat.
The group had previously forecast fixed-line revenue growth of 4 to 5 per cent, with 400,000 broadband additions, though it warned in June that this might have to fall.
"While the second quarter has started well, with a sharp pick-up in subscription connections on the back of the iPhone 3G launch, we remain understandably cautious about the consumer environment," Chief Executive Charles Dunstone said in a statement.
Carphone, which runs about 2,400 stores, warned in June that a slowdown in consumer spending and a housing market demand was hitting demand for broadband, sending its shares sharply lower.
The stock has underperformed the DJ Stoxx European retail index by 26 per cent this year.
Carphone said distribution revenues rose 4 per cent to £735 million in the 13 weeks to June 28th, with mobile connections rising 12 per cent to £2.6 million.
The firm agreed in May to sell 50 per cent of its European and US retail interests to US group Best Buy for £1.1 billion, creating a joint venture to take on DSG and Kesa in Europe's consumer electricals market.
Carphone shares closed at 192.8 pence yesterday, valuing the business at about £1.7 billion.