Lost is one of the best-known programmes on Sky

Sky added 51,000 net subscribers in the nine months to 7 March, but churn - a measure of subscription cancellations - rose to 13.7%, up from 11.9%.

Profits before tax for the first three months of 2007 were �200m, which was 8.7% below the same period last year.

Sky is currently caught in a row with Virgin Media, which has cut Sky's Basic TV package from Virgin's service.

Virgin has now taken court action over the move, claiming Sky was abusing its dominant market position.

Denying the claims, Sky said the action was "without foundation" and called on Virgin to resume negotiations.

But Sky adds that its operating profits for the full year could fall by �15m-20m if its basic channels do not return to the Virgin platform.

Competition investigation

BSkyB share price

Meanwhile, in a further twist to its dispute with Virgin, the firm is also being investigated over its decision to buy a 17.9% stake in terrestrial broadcaster ITV.

The Office of Fair Trading (OFT) has recommended the buy be investigated by the Competition Commission.

Virgin Media - then known as NTL - asked the OFT investigate Sky's purchase of the ITV stake.

Virgin claimed that the purchase was an attempt to derail an attempted merger between the two companies.

Sky's statement says only: "we continue to engage fully in the process".