Pay TV and internet service provider British Sky Broadcasting (BSkyB) is still adding new customers, despite the squeeze on consumers' disposable income.
The company, which is the subject of a controversial takeover bid from its largest shareholder, News Corporation, saw a net increase of 51,000 customers in the first quarter of 2011.
The company saw 543,000 net additions in home communications in the quarter and said 3.2m households now take its broadband internet package.
In a trading update covering the nine months to 31 March, the company saw adjusted revenue climb to £4,833m from £4,232m in the corresponding period of the previous year.
Adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) crashed through the billion pounds barrier to £1,030m, compared with £868m a year earlier.
Adjusted earnings per share surged to 30.5p, a record level for the group, from 23.4p the year before.
Adjusted free cash flow up 60% to £615m.
“Good progress on multiple fronts is translating into strong financial results with double digit growth in revenue, profit and cash flow,” said Jeremy Darroch, chief executive of BSkyB.
"At a time of significant pressure on household budgets, we have added over 800,000 subscription products as more customers choose Sky for a greater variety of services. Take-up of high definition remains very strong and we have had another excellent quarter in home communications, with 26% of customers saving money by taking all three of TV, broadband and home phone,” Darroch added.
The company said it remains cautious about the economic outlook for 2011 and is prepared to “stay flexible on costs”.
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