Reversal of fortune for Carphone Warehouse

Carphone Warehouse Ireland has staged a remarkable turnaround in the past 12 months, turning a near €10m loss in 2013 into a €2.1m profit last year.

The phone retailer, which is to expand into launching its own mobile network this summer, credited a host of new partnerships for its revival in fortunes.

Cost reductions were also highlighted as critical to its success in 2014. Carphone Warehouse Ireland managing director Peter Scott said the results show it has come through difficult conditions to turn a profit but warned it must maintain its focus on being competitive.

“Carphone Warehouse Ireland has weathered the retail downturn and returned to profitability. We have focused on getting the fundamentals right, and expanding our partnership portfolio with leading brands.

“The focus of our management team and growing employee base on getting the business in good shape is delivering. We must stay focused on our competitiveness, particularly when it comes to fundamentals like retail rental agreements,” Mr Scott said.

Partnerships with Sky, UPC, Harvey Norman and Clerys have helped the company turn the corner, a spokesperson said.

The company recently outlined a €30m investment in its own new mobile phone operator, which will launch to consumers this July.

The development is expected to create up to 50 full-time jobs and a new €6m data centre in Citywest.

Carphone Warehouse last year also merged with Dixons. The new Dixons Carphone has 119 stores nationwide and employs 1,050 staff in Ireland.