Carphone has plenty to Talk Talk about

Carphone Warehouse has upped its forecasts for annual profits for the second time in two months after better than expected performances from its Talk Talk broadband business and retail operation. The company, which will split in two in March, said earnings per share for the year to March 2010 would be at the top end of its previously announced 14p-15p range, while its share of income from its retail joint venture with Best Buy of the US will be £40m-£50m, compared with earlier predictions of £30m-£40m. The venture's first new-look "Big Box" stores are set to be unveiled in the spring. Talk Talk, meanwhile, added 36,000 new broadband customers helped by last year's acquisition of Tiscali. Ahead of its demerger, Carphone will pay a special dividend of 3.2p per share to investors in March.