Broadcasting giant BSkyB today reported its highest level of new customers for five years in a sign that hard-pressed consumers are choosing to stay in and spend more on home entertainment.

The pay-TV group posted a better-than-expected hike in net customer additions in its fourth quarter, at 92,000, taking total customers to 8.98 million.

It also revealed an improvement in customer loyalty as its rate of churn – those leaving the group – fell to 9.8 per cent, down from a peak of 13.7 per cent the previous year.

But BSkyB shares fell more than 4 per cent in early trade as it reported a 2 per cent drop in adjusted operating profits to £752 million in the year to June 30, which was slightly below market expectations.

News reported by The Independent