Carphone Warehouse ups forecasts after sales boost

Carphone Warehouse today raised its forecast for profits in the year to next March after better than expected sales during its first half.

Chief executive Charles Dunstone said: "There has been some continuation of the iPhone effect but there have also been some good rival products coming onto the market. We also have good competition between the networks trying attract new customers or get people to switch. And we believe that we have increased market share in a market which has been falling slightly."

Analysts had been forecasting earnings of between 13p and 13.5p this year but Dunstone told them to upgrade to between 14p and 15p. He also said that the demerger of the business into TalkTalk and Best Buy Europe was on course for next March with the first "Big Box" stores opening at Lakeside and Southampton in early Spring.

Carphone's first-half profits rose 88% to £75 million on of £789 million. The dividend rises from 1.35p to 1.45p which means Dunstone as the largest shareholder will pocket a cheque for £4.3 million.