CARPHONE Warehouse anticipates good full year figures in its fourth quarter trading update today.

The group said that despite the tough economic environment it has performed well and expects to deliver full year profits in line with previous guidance.

The group now comprises Carphone Warehouse Europe and Best Buy Europe, a 50-50 venture with the US retail group that involves Best Buy UK, an eight-strong chain of ‘Big Box’ retail stores including one in Aintree, and a profit sharing agreement with the Best Buy Mobile US retail chain.

Today’s statement revealed a 26% increase in connections during the fourth quarter for Best Buy Mobile US, pushing full year profits guidance to the top end of forecasts of around £90m to £100m.

The Best Buy UK chain plans to open three more Big Box stores over the spring/summer period, taking its total to 11.

And Carphone Warehouse Europe is expected to deliver up to 20% earnings before interest and tax growth for the full year, with like-for-like sales of almost 1%, in line with guidance.

The division reported a 1.7% fall in fourth quarter revenues, but this was against a strong comparative period last year.

It also experienced a year-on-year reduction in connections, but explained that this was due to lower demand for high-end prepay connections and more recently the impact of the shift from 18 month to 24 month contracts in the UK.

It said: “While the shift to 24 month contracts affects the volume of upgrade connections, it does not affect our lifetime income from the postpay upgrade segment.”

Carphone Warehouse Europe currently operates 106 Wireless World stores and plans to open 400 more by the end of the financial year at March 31, 2012.

Chief executive Roger Taylor said today: “For the third consecutive quarter we are increasing our guidance for full year earnings per share.

“We believe we are well positioned to continue to capitalise on the rapid development and proliferation of smartphones and the ever-expanding range of tablets coming to the market, despite the uncertainty around the economic environment.”