Carphone Warehouse reports second quarter

Europe's largest independent mobile phone retailer, Carphone Warehouse, has reported a strong second quarter and 140,000 customers on its new residential fixed-line service, talktalk.

Chief Executive Charles Dunstone said that increased competition among mobile networks, good progress in Germany and good growth in the service, were all contributing factors to a strong quarter.

The company is to pay an interim dividend of £0.04 per share, which amounts to one-third of the expected full-year payout.

Talktalk now adds a net 8,000 customers per week, with Carphone increasing its target to 350,000-400,000 subscribers by March next year. The company is to write off up to £8m (€11m) to cover the costs of this venture.

Due to a Customs & Excise inquiry into the European trade of mobile phones, Carphone said its wholesale division had seen little activity.

The company said that if suspension of wholesale trade continued, it expects the division to break even for the full-year.