Carphone Warehouse planning US expansion

Carphone Warehouse targeted more of the American market today after revealing plans for 1,000 outlets over the next two years.

The group, which has several outlets in Ireland, said the success of a trial run at 70 sites had prompted it to expand the venture to more outlets within Best Buy, the US electronics chain.

Announcing half-year results today, Carphone said it saw "considerable scope" for growth in both Europe and the United States.

The company's UK retail operation also stands to benefit from an exclusive contract to sell Apple's iPhone, which is due to be launched at 6.02pm on Friday.

The iPhone has contributed to expectations for a "good second half" in retail, with new product launches and amid rising interest in mobile data services.

Carphone added that it was confident of growing market share in fixed-line services, with the company's total broadband base now at 2.5 million - equivalent to around 17% of the UK market.

Carphone said its confidence in future prospects was highlighted by a 25% increase in its half-year dividend.

Headline profits grew to £56m (€80.3m) from £14m (€20m) in the six months to September 29, while revenues were up 18% to £2.14bn (€3bn).

The company's retail operation opened 258 stores and relocated or closed 65 in the first half, taking the total number of stores in the portfolio to 2,337. It expects to open a net figure of 350 stores in the whole financial year.

Total connections grew 20% to 5.2 million, helping revenues increase by £110m (€157.7m) to £1.46bn (€2.1bn) and underlying earnings by 4% to £56m (€80.3m).

The group is now the third largest broadband provider in the UK, behind BT and Virgin Mobile, after last year's offer of free high-speed internet to those customers paying £20 (€28.68) a month for a landline phone.

hat was followed by the biggest deal in its history with the £380m (€544.85m) acquisition of AOL UK.