Carphone Warehouse said the roll-out of superfast 4G mobile broadband services was set to maintain strong demand for smartphones and tablet computers after seeing UK sales surge by more than 10%.
The group, which also announced the completion of its deal to buy out US retail partner Best Buy, hailed a particularly strong performance across its UK stores as it posted a modest rise in underlying pre-tax profits to £59 million from £58.3 million a year earlier.
It has been benefiting from the booming tablet computer and smartphone market, but said sales had also been lifted by more affordable contract phone deals.
Like-for-like revenues rose 4.6% across its 2,377 stores in the Carphone Warehouse Europe retail arm, helped by the strong UK performance, as Carphone said the developments in 4G would help maintain sales growth in the facing of "challenging" consumer conditions.
It said: "The more widespread development and promotion of 4G services may provide a stimulus to the handset replacement cycle and an opportunity for network operators to develop pricing structures to reflect higher quality services and higher levels of data consumption."
The group added that tablet sales would benefit from "significantly" improved download speeds under 4G.
Underlying earnings across the group edged 1% higher to £137 million in the year to March 31 and Carphone said it expected an increase to between £140 million and £160 million over the current financial year.
It also revealed that Carphone Warehouse Europe boss Andrew Harrison will be promoted to group chief executive from next month in place of Roger Taylor, who will become deputy chairman.
The move follows its £471 million acquisition of Best Buy's 50% stake in Carphone Warehouse Europe - a decision that saw it call time on the ill-fated joint venture.
It secured a cut price deal for the stake, paying much less than the £1.1 billion it received from the US group for the shareholding in 2008.
Carphone spun off nearly 2,400 stores into the venture under aims to create a new consumer electronics empire to take on the likes of Dixons Retail, but was forced to close the 11 "big box" shops it opened in conjunction with Best Buy in 2011 after failing to make headway.
The group is also pulling out of France and booked a £94.1 million hit from the failed business.
Annual results showed that Carphone's Virgin Mobile France joint-venture saw underlying earnings fall to £21.5 million from £11.9 million.
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