Carphone profits receive smartphone boost

The group, which jointly owns its retail business with US partner Best Buy, said strong sales of smartphones and last year's cost cuts helped increase earnings growth in Carphone Warehouse stores.

It expects its share of annual retail profits to be around 47 million for the year to the end of March - up on the 40 million to 45 million range given at its last profits upgrade in January.

Carphone and Best Buy are preparing to open the first of its "Big Box" consumer electronics stores in Thurrock, Essex, on Friday. It will offer initiatives such as a trade-in service where customers can receive discounts when they bring in their old televisions, laptops and mobile phones.