Sky still growing, with HD leading the charge

Annual profits up for BSkyB

Sky Impressive results

Sky has revealed that it has added a further 124,000 subscribers in the last quarter – beating its target and helping the company to a four per cent rise in annual operating profits.

Sky's focus on gaining more customers for its high definition services appears to have paid off, with the company moving past 1.3 million HD subscribers, with a price drop for the set top box bringing a further 534,000 HD customers.

The price drop cost Sky in the region of £130 million, but boosted revenue by 100 million, with the long term benefits clear.

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10 million customers

"We offer customers outstanding value through a combination of high quality products and great value and expect continued growth towards our target of 10 million customers by December 2010," BSkyB chief executive Jeremy Darroch told The Guardian.

Sky's pre-tax profits were £456 million up £60 million year on year, although figures include a £191 million writedown in the 17.9 per cent stake in ITV, whose share value has plummeted.

Operating profits were £780m, up four per cent on last year's £752m, and the company's Sky Broadband losses are beginning to fall.