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Sky, which is part of the News Corporation company that also owns The Times and Sun newspapers, has reported a 40 per cent rise in first quarter profits as its customers increasingly adopt its high definition TV, broadband and telecoms services. The Rupert Murdoch owned company has kept costs down as well.

Sky added 287,000 customers in the first quarter through powerful demand for its Sky+HD high definition service. Sky now has 9.536 million British households subscribing to its services. Its voice network has been undergoing an upgrade 70 per cent of its exchanges are already complete.

First quarter profits rose by 40 per cent, with a pre-tax profit of £180 million for the three months to September 30 reported. This was due to a 15 per cent growth in retail subscription revenue.

"We maintain a tight focus on costs, with administration costs for the quarter held flat for the second year in a row," Sky said. It has seen its network costs increase to £118m from £79m in 2008 due to the higher volumes of broadband and telephone customers it now has.

The supply chain and customer relationship management (CRM) costs at Sky also increased by £7m to £162m, again due to increased customer numbers.

Sky is still awaiting conclusion of its law suit against HP owned EDS for the failure of a CRM integration project.