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(16 Apr 2008, BWCS Staff)UK supermarket giant Tesco revealed in its annual results yesterday that its MVNO business is growing at a rate of 250,000 customers a year. In a statement, the retail giant which has recently spread its tentacles across the Atlantic said its telecoms business made ‘very good progress' with growth across mobile and fixed line sales.
Tesco Mobile has an MVNO agreement with Spanish-owned operator O2. The company moved from a small loss in 2006/2007 to what Tesco described as "an encouraging level of profitability" with sales up by 39%. As Tesco looks do diversify away from food, CEO, Terry Leahy singled out mobile as a key area of growth for the company. He said: ‘We're making good profits now in the mobile business, such as the whole Telecoms Group is profitable.
For the financial year 2007/2008 to the 23 February, showed that sales at the group had jumped by 11% to £51.8 billion, while group trading profit grew by the same amount to £2.7 billion. However, despite the record profit, the level of growth was Tesco's lowest in the last eight years and its sales from non-food items slowed from 10% in the first half of the year to 8% in the second half.
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