Telecommunications provider Carphone Warehouse netted 340,000 new customers for its broadband offer in only two months, the company has reported.
Although its preliminary annual results showed overall profits fell by 12 per cent after costs and tax, its operational results showed that annual connections and subscriptions had increased by 26 per cent and 23.6 per cent respectively.
Responding to the impressive expansion of its broadband arm, Charles Dunstone, the company's chief executive, said that its offer had "exceeded our most optimistic expectations".
"Our impact and influence on the UK residential telecoms market is becoming considerable," he said.
"Our aim was to change the UK broadband market forever, and there is no doubt that we are well on the way to achieving this."
Carphone Warehouse, which had acquired Onetel and Tele2 UK in the past year, also announced substantial new investments today to further its British broadband market.
"We are making a substantial investment during the current year to support our free broadband proposition, with a £50 million total operating loss from this project expected," Mr Dunstone said.
He emphasised that the investment would create "substantial value in the medium term", reflecting the long-term nature of Carphone Warehouse's current business strategy.
Analysts have generally agreed with the company's own assessment of its broadband potential in future years, with Mr Dunstone predicting profits of £30-40 million in the year to March 2008.