Carphone Warehouse reports broadband sales growth

Carphone Warehouse has reported sales growth for both its broadband and retail businesses during the second quarter.

According to the firm, the units are “continuing to trade well.” Fixed-line broadband unit TalkTalk gained 77,000 new broadband subscribers over the period.

However, the figure was offset by churn at Carphone’s recently acquired Tiscali subsidiary, which lost 62,000 clients, leaving the business with 15,000 net customer additions.

According to the firm’s chief executive Charles Dunstone, the departures were anticipated.

"We anticipate the adjustment required [to the Tiscali customer base] will be a reduction of 160,000 customers, who are predominantly broadband customers. The consequential true-up payment due to us will be made from funds currently held in escrow," Dunstone said in a statement.

The group is confident that TalkTalk will end its current financial year with a total broadband customer base of between 4.1 million and 4.2 million.

Best Buy’s European connections grew two per cent from a year earlier, the firm said. Carphone is now in the process of de-merging Best Buy and TalkTalk and the process is “progressing at pace”, with total separation on track for March 2010.