UK-based retail outfit Carphone Warehouse is considering demerging its distribution and telecoms businesses, to better develop the individual units.

As the company announced its six month results to the end of September, chief executive Charles Dunstone said, “The structure of the Group may now no longer be appropriate for the optimal development of the two businesses. The Board has therefore initiated a formal review of the Group’s corporate structure and capital requirements, which may lead to a separation of the two businesses.”

For the six month period, the company announced a net profit of £39m, down from £44m in the same period a year earlier. Revenues were down to £697m, from £711m in the same period last year.

The recently formed distribution business, now known as Best Buy Europe, turned in an EBIT of £7m, with mobile connections for the period up 11 per cent year on year to 5.7 million. Subscription sales were strong, rising 15 per cent to 2.3 million.

The TalkTalk telecoms business reported an EBIT of £53m, with the company’s broadband customer base up 12 per cent year on year to 2.8 million, with strong growth in the TalkTalk customer base offset by a decline in the AOL Broadband base.

The non-broadband base, comprising voice only and internet dial up customers, fell 35 per cent to 1.3 million.

This week the company launched myTalkTalk, which is designed to allow customers more service flexibility, by adding services to their core broadband, line rental and calls package as and when they want them. Additional products include higher speed, higher download limits, anytime calls, discounts on calls to mobile phones, and security software, and are all priced at £4 per month, with no contractual obligation.