Jeremy Darroch, Sky's Chief Executive, commented:

"The business has delivered another good performance in what has clearly been a tough consumer environment and we are benefiting from the transition to more broadly based growth. Good progress on multiple fronts is translating into strong financial results with double digit growth in revenue, profit and cash flow.

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.

The strength of our financial performance has been equally broadly based, with good revenue growth across retail, wholesale and advertising. Strong cost control and continued margin expansion has delivered 24% growth in operating profit and free cash flow is up 60%.

We remain cautious on the economic outlook for calendar 2011. Our approach in the current environment will be to stay flexible on costs while delivering for customers through a combination of great value, high-quality content, leading innovation and better service. As these results show, the whole team remains focused on executing our strategy."