CARPHONE WAREHOUSE RAISES PROFIT FORECAST TO £47M

Mobile phone retailer Carphone Warehouse has raised its full-year profit forecast for the third time in six months.

The company said it expected net profit for the year to the end of March to be about £47m, more than the £40m-£45m it indicated in January.

It said cost cuts and strong sales of smartphones were driving profit growth.

The firm also said it expected strong growth at its joint venture with US group Best Buy.

“We have ended 2010 with another strong performance and given our third upgrade in six months,” said Carphone's chairman Charles Dunstone.

“Best Buy Mobile US is outperforming even our expectations. Our full-year results are ahead of expectations and our operating free cash flow is well ahead.”

Carphone Warehouse shares had risen almost 3% by early afternoon trading as a result of the announcement.

The company split from its TalkTalk fixed line and broadband business last summer, creating two separate entities.