Mobile retailer Carphone Warehouse is warning that its earnings for the year will be up to 10 per cent below market expectations.
Its third quarter figures show that group revenue dropped by more than 6 per cent to £311.4 million sterling, from £333.8 million last time.
Connection numbers have fallen to 1.14 million across the group, compared with 1.2 million last year.
Carphone Warehouse says its average revenue per connection is in line with hopes, although the market for mobile phones has declined by more than 40 per cent.
But the company says it has increased market share, particularly in the UK - where subscriber figures are up by more than 20%.
Chairman and chief executive Mr Charles Dunstone is predicting a tough market for mobile handsets over the next six months.
He says the group will continue to expand its share of the market.
But he expects the market to improve from autumn onwards, as handsets with new functions and improved technology come on to the market.
For the current year, though, he says earnings will suffer from the weakness of the market and from the group selling more pre-pay phones than expected.
PA