Telecoms group Carphone Warehouse yesterday announced it would create up to 800 jobs this year as it revealed a ten per cent increase in first quarter profits.

The group said it planned to take on between 300 and 400 staff at 100 shops that it proposes to open in the financial year ending in March.

It plans a similar increase in staff numbers in its call centres, which are part of its telecoms business.

Unveiling the results, the firm said like-for-like profits in its main distribution business rose ten per cent, with same-store revenues up 13.7 per cent.

Mobile customer numbers in its telecoms services division grew to 1.8 million and underlying revenues from mobiles lifted 18.4 per cent.

Chief executive Charles Dunstone said the distribution and telecoms businesses were performing very well.

Carphone, which employs about 10,000 people, has 477 UK stores in its distribution business, which sells mobile phones and other accessories and makes up about 65 per cent of the group's total revenues.

It said like-for-like revenues in retail grew 13.7 per cent.

The group's telecoms service business comprises mobile and fixed-line operations.

The underlying revenue growth of 18.4 per cent in its mobile business was supported by growth of 11 per cent in customer numbers in the UK and France.