For the first six months of its financial year to December 31, revenues were up 11% to just under £2.5bn, but operating profit dropped 25% to a better than expected £295m.
This did not include the £343m write-down on the value of its stake in ITV to reflect the terrestrial broadcaster's languishing share price at the end of 2007.
Last week, John Hutton, the secretary of state for business, enterprise and regulation, told BSkyB to cut the stake to less than 7.5% because of competition concerns.
Advertising revenue fell by £4m to £167m, compared with £171m in 2007, reflecting the non-carriage of BSkyB's basic channels on Virgin Media's cable offering.
Its advertising share for the six months to December 2007 was up year on year by 0.3% to an average of 14.2%.
Churn, or the percentage of total customers who dropped their subscription, was reduced to 10%. BSkyB added 260,000 broadband customers to take its total to 1.2m.
BSkyB began offering broadband in August 2006 and bundled it with its pay-TV and phone offerings to shore up its offering in the face of strong competition from rivals such as Virgin Media and BT.
The company also experienced record sales growth of Sky+ boxes, up 16% to 3.1m.
Jeremy Darroch, the newly installed chief executive of BSkyB, said: "We have made good progress during the quarter. Our focus on value and quality has delivered a strong level of new customer additions, a 35% year on year increase in product sales, record Arpu, and lower churn. Our business continues to strengthen.
"We enter calendar year 2008 in good shape. A combination of outstanding choice, quality and value leadership leaves us well positioned. An 8% increase in our interim dividend reflects our confidence."
Darroch, previously finance director, was appointed CEO in December to replace James Murdoch, who has taken up a new executive position at BSkyB's parent company News Corporation.
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