BSkyB today announced a strong rise in subscribers to its pay-TV services, though profits have been hit by the cost of launching a new broadband service.

The company had its best Q1 performance in three years, adding 82,000 digital satellite customers up to September 30th. BSkyB now has 8.25 million subscribers in total.

BSkyB made progress with its broadband service, connecting 74,000 broadband customers since starting the service in August.

The company has so far received one million ‘registrations’ for Sky Broadband, potentially exceeding our expectations of up to 600,000 broadband customers by the end of the year, depending on whether it can convert registrations into customers. By comparison, Carphone Warehouse attracted more than 300,000 broadband customers, when it launched its ‘free broadband’ campaign.

BSkyB CEO James Murdoch is happy with the progress since the launch:

“While it is still early, we are pleased with the progress since the launch of Sky Broadband  and in just 15 weeks, we’ve seen a great response from Sky customers.”

BSkyB bought Internet provider Easynet Group Plc for £234 million this year and plans to spend another £400 million to roll-out broadband over three years, in a bid to acquire and retain more customers.

The company’s profits fell from £200 million to £166 million, due to the cost of its broadband services. The broadband service made a £35m loss over the period, while Easynet made a £7m loss.