BSkyB's broadband customer base grew 28 per cent to 1.199 million in the first half of its financial year, according to figures released today.

The increase is partly due to the firm's bundling of broadband with a TV package, as part of plans to reach three million high-speed internet customers by 2010.

Overall, BSkyB made a loss of £36m for the six-month period, due to a combination of its aggressively competitive broadband strategy and a write-down on the value of its stake in rival broadcaster ITV.