Carphone Warehouse has beaten first-quarter revenue forecasts and said it is on track to meet full-year market expectations.

The mobile phone retailer said it is also on track to demerge its Talk Talk telecoms division from its Best Buy Europe retail arm in March, following the agreement of a new £350m banking facility.

In the 13 weeks to July 4, revenues at Talk Talk fell 2 per cent year-on-year to £240m. Revenues at Best Buy Europe were £773m, up 0.7 per cent on a constant currency basis, beating forecasts. The retailer said that it was on track to meet full-year financial targets.

The retailer revealed that Best Buy Europe – the joint venture with US electricals giant Best Buy – has signed leases for two stores in the UK and is close to signing another three. It has identified 10 more sites for opening later next year.

UBS analyst Andrew Hughes said that the first-quarter update “gives more comfort on the outlook for the full year”. He added that stability in estimates will also be a “useful backdrop for the ongoing demerger process”.