Carphone Warehouse’s retail division, Best Buy Europe, reported connections rose 2% to 3.2 million in the second quarter.

It described the performance as “robust” against tough comparisons last year following the launch of the iPhone 3G.

The retailer said: “During the quarter, the handset market has remained subdued but we continued to gain market share in a number of European markets.”

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.

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