Carphone Warehouse yesterday delivered a 36 per cent increase in pretax profit and said 340,000 customers had signed up for its "free" broadband offer.

The UK-based independent mobile retailer, which isn't attached to any particular network, said that prospects for the group were good.

It is targeting 15 per cent growth in mobile subscriptions this year.

However, the firm said its investments in broadband and in setting up a mobile phone venture with the Virgin group in France would impact group profit significantly this year.

"The strength of our confidence in our future prospects means we intend growing dividends in line with underlying group earnings growth," the company said in a statement.

Pretax profit, before reorganisation costs, amortisation and goodwill expenses, was £136.1 million (€198 million) in the year to the end of March, ahead of an average market forecast of £134.7 million. Sales rose 29 per cent to £3 billion.

Carphone Warehouse doesn't break out figures for individual regions, but Stephen Mackarel, chief executive of the Irish operation, said in April that the business was performing well.

During the year it opened 12 new outlets in the Republic, bringing its retail chain to 46. It plans to open another 10 in the coming year.

As the only high-street retailer to sell phones from all operators, Carphone Warehouse is benefiting from increased competition in the Irish mobile market.

The company said yesterday take up of its "free" broadband offer in the UK, which comprises voice calls and unlimited broadband for £20.99 a month - effectively offering customers high-speed web access free of charge - had doubled its expectations.

Mr Mackarel said that the group - which acquired the Irish operation of Tele2 this year - is considering how to move into the Irish broadband market.