The full cost - near £40 million - of Charles Dunstone’s troubled foray into broadband was revealed today.

The hit helped overall half-year pre-tax profits at the group - which is still reeling from Vodafone’s abrupt termination of its subscription phone contract - slide 62 per cent to £14.1 million.

Ever bullish, the Carphone team insist that the outlook for the group both in its broadband venture and its core distribution business remains good.

But evidence from customers and from Ofcom - which says it is keeping a close eye on Carphone’s TalkTalk broadband - suggests the internet problems are far from over.

And while Charles Dunstone insists that Vodafone’s exit has no wider implications for its retail business the 21 per cent fall in the group’s share price since the mobile group’s departure indicates that the City does not share his optimism.

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