The Carphone Warehouse said in its third quarter update that like-for-like revenue was up one per cent, with like-for-like profits up 3.1 per cent.
Total retail revenue for the last quarter increased by 13 per cent, the upbeat trading statement said.
"We significantly outperformed the market in both subscription and pre-pay," commented Charles Dunstone, chief executive of the mobile phone and broadband vendor.
The statement said that like-for-like gross profit in December alone was eight per cent up, but that "the pre-pay market was a little more subdued than last year".
The positive figures come as concerns that the UK's retail sector would be impacted by decreased consumer confidence and spending.
Some 86 new stores were opened during the 13 weeks to December 29th 2007, taking the total number to 2,423.
Joint ventures with Virgin Mobile and Best Buy were "progressing well", the release said, and confirmed plans to expand in the US.
The Carphone Warehouse also said broadband performed well, adding 118,000 new connections during the quarter. However, it also noted that B2B revenues fell nine per cent to £77 million for the quarter.
The announcement said the company remained positive on its outlook for 2008.
Despite the optimistic news, the price for a share in Carphone Warehouse has fallen over four per cent to 291.75p in early trading today.