Charles Dunstone expects his Carphone Warehouse business to make interim profits of between £53 million and £56 million after an “excellent operational performance” in the second quarter.

Total connections rose 19.2 per cent in the period to 2.8 million and Dunstone believed Carphone’s status as a distributor of the iPhone would bring “significant competitive advantage”.

Numis was “very encouraged” by the growth prospects of Carphone’s store network and said the “unbundling” of exchanges would help profits rise strongly in the second half.

Panmure Gordon, advising buy, said: “With the potential roll-out of 150 to 200 US outlets with BestBuy, the move into profitability of broadband and the continuing strength of the retail distribution model cross Europe, Carphone offers good value.”