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Carphone Warehouse said sales of mobile broadband have helped support profits in a slower consumer environment in a third quarter trading statement.

Total telecoms subscriptions were up 16 per cent year-on-year, while mobile connections rose 12 per cent to 2.7 million.

Over the next year to March 2009, the company expects mobile connections to increase between eight to ten per cent and the rate of physical expansion will be more "measured" due to the softer economic environment.

The telecoms retailer also added a further 109,000 broadband customers to take its base to over 2.7 million.

The company believes the higher subscriber acquisition costs were related to a free laptop offer last year when customers signed up to Carphone Warehouse's AOL broadband service.

In addition, Carphone Warehouse said it will encourage a greater separation of its businesses, which will hit earnings by around £15 million.

Charles Dunstone, Chief Executive Officer, said: "Our performance over the last three months has been good in a slower consumer environment.

"Looking forward, we anticipate a year of considerable further progress. The broadband business is set to deliver significant further margin improvement, and provides us with excellent earnings visibility."

Carphone Warehouse said it expected pre-tax profit to reach between £215 million and 220 million for the full year. Preliminary results will be released in June.