Carphone Warehouse chief executive Charles Dunstone has confirmed that he is looking at splitting the retail and broadband arms of the business as the company reported EBITDA growth of 51 per cent to £112 million in the 26 weeks to September 27.

The business’ retail and distribution arm, now called Best Buy Europe, hit revenues of£1.62 billion for the period, up from£1.44 billion the year before. Group revenue, excluding Best Buy Europe, was down 2 per cent to£697 million.

In the UK revenues were up 8 per cent to£779 million, with growth driven by the Apple iPhone and increased demand for mobile broadband.

Following reports that the company would broadband and telephony arm TalkTalk would be split off, Dunstone confirmed a review of the business.

He said: “I believe we have reached a watershed in the evolution of the Group, with two discrete and focused businesses with strong market positions and solid financial foundations. We recognise, however, that the structure of the Group may now no longer be appropriate for the optimal development of the two businesses.”

The results of the business review will be announced in Spring 2009.

Looking ahead to the next 12 months, Dunstone said it would be “the most challenging economic climate we have ever operated in”.

He added: “The immediate consumer outlook remains very uncertain. In the short term, Best Buy Europe is well positioned relative to its competitors, with an excellent line-up of exclusive products as we approach Christmas.

"So far this year, we have outperformed our expectations in subscription connections, but underperformed in pre-pay. As the Christmas marketplace has proportionately a much higher pre-pay share, predicting the outcome of the next six weeks of sales is very difficult. Further out, the development of our big box consumer electronics format is an exciting new growth avenue for the business.”