By Andy McCue, 21 September 2004 14:30
NEWS Tesco's push into telecoms and the continued success of its online shopping operation Tesco.com have contributed to bumper half year results for the retailer.
Overall, Tesco sales for the half year ended 14 August were up 12.2 per cent to £16.5bn with pre-tax profit up 24.4 per cent to £822m. The UK business accounted for much of this with sales up 11.5 per cent to £13.1bn and operating profit up 13.3 per cent to £707m.
While a group-wide 'Step-Change' efficiency savings programme contributed to the good figures, Tesco.com and the foray into telecoms services were also bright spots.
Just last month Tesco launched its no frills unlimited broadband service in the UK for £19.97 a month, following up on launches last year of fixed-line and mobile services.
Tesco said in its results statement: "We are now very competitive in mobiles, domestic fixed line and internet access. We now have a total of 650,000 customers in telecoms, with considerable scope for growth."
Tesco continues to lead the UK retail market online and Tesco.com sales grew by 27 per cent to £307m and profits increased by 95 per cent to £15m.
"We are attracting many new shoppers and average customer spend has increased by nearly seven per cent over the last three years," the results statement said.
Comments
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1. anonymous
I'm not surprised that Tesco is leading the online retail market. I've recently switched and found it to be one of the most usable sites I've come across. The whole process - from booking a slot to receiving your goods - is entirely predictable. Just what a customer needs if they're going to trust you enough to give you their credit card details.
2. anonymous
Never again Tesco.com!!!!I bought a Sharp TV at Tesco.com. At 1st I was very happy with it until a problem arose on the 13th month from ordering (but the 11th month since delivery). They dropped me like a pair of old boots. I had to fight it out with Sharp and after a few months Sharp admitted it was a faulty product. I know it was a direct delivery product but they could still have helped me. They are the number 1 at taking your money until you have a problem.