SATELLITE broadcaster BSkyB reported a 32% rise in profits as increased sales of telephone and broadband packages offset a slowdown in new TV subscriptions.

An additional 26,000 households signed up for its TV services in the three months to September 30, bringing the total to 10.2m – but this was down on 100,000 who signed up in the previous quarter.

Underlying profits rose to £327m following strong sales of line rental, telephone and broadband packages. Some 2.9m customers now take broadband and telephone packages as well as TV.

BSkyB also benefited from a £39m “break fee” from Rupert Murdoch’s News Corporation after it dropped its bid to buy the 61% of the company it did not already own.