Mr James said: "So far it is doing everything that we hoped it would." Dixons Carphone was created last year with the aim of tapping into the way technology will transform households through the "internet of things'', as rapid internet speeds mean appliances can be controlled by the touch of a mobile device. Such a retail behemoth is expected to have more power to stand up to online competition from electrical retail rivals such as AO World. Richard Hunter, head of equities at Hargreaves Lansdown stockbrokers, said: "A profit upgrade on a profit upgrade is testament to the early benefits of the Dixons Carphone merger." He added that he saw further good news in the future: "The increasingly pervasive 'internet of things' will provide a threat for some, but an opportunity for others and the current signs are that Dixons Carphone will fall into the latter category."