Carphone factors in broadband success

The group increased its full-year forecasts for the second time in two months, helped by the increase in new broadband customers, which was also boosted by its takeover of Tiscali's UK operations.

Carphone, which is splitting its TalkTalk business and Best Buy Europe retail joint venture into two companies, said it now expects year-end broadband customers at the top end of its guided range, at between 4.1 million to 4.2 million.

It also upped guidance for its share of Best Buy Europe's net income to between 40m and 45m after a 5.5 per cent rise in like-for-like sales for the three months to December 31.

TalkTalk now has 4.15 million customers thanks in part to the group's official sponsorship of hit show the X Factor.

The telecoms arm became the UK's second biggest broadband provider behind BT after snapping up Tiscali and has now rebranded Tiscali operations as TalkTalk following the completion of the acquisition in July 2009.

Carphone, which aims to spin off TalkTalk by the end of March, said customer growth for the TalkTalk brand was offsetting a decline in the Tiscali customer base following the deal.

Around 20,000 former Tiscali customers are quitting each month, although the group said it expected the number of leavers at this level.