British mobile phone retailer Carphone Warehouse has reported a 26% rise in profits to £12m for the six months to the end of September.
The company said it was 'quietly confident' about its full-year performance, but added that much depended on sales in the Christmas period.
Its turnover in the period grew by 19% to £433.8m and losses in its troubled German division were halved.
The company said mobile handset sales had stabilised after a sharp fall last year.
But chief executive Charles Dunstone later told Reuters that the company would sell the German business if it did not turn a profit next year.