Shares in BSkyB were up on the FTSE 100 in morning trading after the broadcaster reported double-digit rises in revenue and profit in the first quarter ended 30 September.

The group said that revenue increased 15 per cent, thanks to strong growth in subscriptions and advertising.

Operating profit also rose by 25 per cent to £255 million.

During the quarter BSkyB saw net product growth rise 12 per cent from the previous year to 989,000. The group also reported net customer growth of 96,000, giving BSkyB reach into almost 10 million households.

Jeremy Darroch, Chief Executive of BSkyB, said, "Today's results show that our consistent strategy is delivering an excellent performance in a challenging environment. Strong top-line growth is converting to accelerating profit and earnings.

"Operationally, we have made a very good start to the year with 96,000 net customer additions and record take-up of our additional subscription products. In particular, our focus this quarter on home communications has been rewarded with our highest ever take-up of broadband, telephony and line rental, alongside further good growth in high definition. To support our continued growth, we plan to open a new contact centre next year with the creation of 500 jobs.

"This performance, combined with our continued emphasis on operational efficiency, is translating into strong financial results. We've delivered 15% growth in revenue, 25% growth in operating profit, 33% growth in earnings per share and our operating margin increased for the third consecutive quarter. These results are underpinned by continued investment in content and innovation, which is bringing more value to customers and growing returns for shareholders."

Richard Hunter, Head of UK Equities at Hargreaves Lansdown Stockbrokers, commented, "Sky's longstanding target of 10 million subscribers by the end of 2010 is now tantalisingly close.

"The company has remained at the vanguard of home entertainment, with its High Definition product now being supplemented by 3D. In addition, the telephony and broadband services continue to grow apace, with the result that both subscriber numbers and operating profit have both exceeded market expectations. There is some uncertainty overhanging following on from the News Corporation bid, whilst competition from the likes of BT remains a threat. The forthcoming age of austerity could also provide a headwind, although until now Sky has drawn some benefit from the consumer's decision to spend more leisure time at home.

"In all, Sky continues to make strong progress, as has been reflected in a share price hike of some 22% over the last year, double the gain over the same period of the wider FTSE100. Even after this gain the market consensus remains that the shares are a cautious buy."

By 08:55 shares in BSkyB were up 0.36 per cent on the FTSE 100 to 700.00 pence per share.