Carphone Warehouse raised its full-year earnings forecast after a strong first-half performance at both its telecoms and retail arms and said it was on track to split in two by the end of March 2010.
The group, Europe's biggest mobile phone retailer and also Britain's second-largest broadband provider, said today underlying earnings per share leapt 88 per cent to 6 pence in the six months to September 30th, helped by a rise in broadband customers and strong demand for smartphones like Apple's iPhone.
Carphone raised its full-year earnings forecast to between 14 and 15 pence, compared with analysts' current average estimate of 13.7 pence.
The group reiterated it was on track to split into two companies by the end of 2010 and that its retail business -- a joint venture with US electricals group Best Buy -- was on course to open the first of its planned new chain of megastores in the Spring.
First-half revenues rose 13 per cent to £789 million and the interim dividend was lifted to 1.45 pence a share from 1.35 pence at the same time last year.
Carphone said the new telecoms business, TalkTalk Group, would pay a dividend equivalent to the current progressive policy of the group, but the new retail firm, Carphone Warehouse Group Plc, would not make a payout for at least two years.
Carphone shares fell three quarters in value in 2008 as the recession hit, but have recovered about half of that loss this year, outperforming both the DJ Stoxx telecoms and retail indexes.
They closed at 192.3 pence yesterday, valuing the business at about £1.8 billion.
Reuters