Carphone Warehouse’s retail division, Best Buy Europe, reported that connections rose by 2% to 3.17m in the second quarter.

The retailer described the performance as “commendable” against tough comparisons last year following the launch of the 3G iPhone.

“During the quarter, the handset market has remained subdued but we continued to gain market share in a number of European markets especially within the high value smartphone segment,” Carphone said.

Best Buy Europe, a partnership between Carphone and US giant Best Buy, remains on course to open its first big box stores next spring. “We are making strong progress on finalising further store openings next year,” the retailer said. US business best Buy Mobile “continues its very strong development”.

Carphone reiterated existing financial guidance and said a demerger of its retail and broadband businesses was “on track” for the end of March 2010.