Carphone Warehouse has begun a review which could see its TalkTalk residential broadband and telephony business split from its high street retail operation.
The news was announced in a trading update released today, with the company also revealing a drop in first half profits.
Earlier this year the company acquired US electronics retailer Best Buy in a deal which saw the American firm take a half share in its European retailing business for £1.1 billion.
Carphone Warehouse CEO Charles Dunstone said that this means that the company’s structure needs to be changed.
“I believe we have reached a watershed in the evolution of the group, with two discrete and focused businesses with strong market positions and solid financial foundations,” he said. “We recognise, however, that the structure of the group may now no longer be appropriate for the optimal development of the two businesses.”
He added: “The board has therefore initiated a formal review of the group’s corporate structure and capital requirements, which may lead to a separation of the two businesses. In this instance I would remain closely involved with both companies. We will provide an update on the review’s progress in Spring 2009.”
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