Fast broadband speeds up sales at Carphone Warehouse

Carphone Warehouse says the roll-out of superfast 4G mobile broadband services is set to maintain strong demand for smartphones and tablet computers, after the firm saw UK sales surge by more than 10%.

The group, which also announced the completion of its deal to buy out US retail partner Best Buy, hailed a particularly strong performance across its UK stores.

It posted a modest rise in underlying pre-tax profits to £59 million from £58.3m a year earlier.

It has been benefiting from the booming tablet computer and smartphone market but said sales had also been lifted by more affordable contract phone deals.

Like-for-like revenues rose 4.6% across its 2,377 stores in the Carphone Warehouse Europe retail arm, helped by the strong UK performance, as Carphone said the developments in 4G would help maintain sales growth in the face of “challenging” consumer conditions.

The group added tablet sales would benefit from “significantly” improved download speeds under 4G.

Underlying earnings across the group edged 1% higher to £137m in the year to March 31 and Carphone said it expected an increase to between £140m and £160m over the financial year.