SATELLITE broadcaster BSkyB smashed expectations with 51,000 net new subscribers in its third quarter, driving its shares up over six per cent.

Analysts, who had been expecting net subscriber growth of 27,400, said the net growth showed the company's strategy of offering broadband to attract customers was working.

The group said it attracted 340,000 gross subscribers, up 25 per cent year-on-year and the highest third-quarter gross additions in six years. It now has 8.5 million subscribers in total.

Nine-month revenues increased by 10 per cent to £3.37bn, with operating profit of £613m.

ARPU, the annualised revenue per user, increased by £12 quarter-on-quarter to £406 as Sky customers opted for more expensive packages.

However, the decision to drop the price discounts, and raise prices for existing customers, did increase the company's churn rate - the percentage of customers who dropped their subscription - to 13.7 per cent, up 1.8 per cent on the previous quarter.