BSkyB shrugged off a decline in advertising revenue to post record half-year profit growth in the six months to 31 December 2011.

The News International subsidiary showed no ill effects from the hacking scandal engulfing the organisation, with operating profits up 16 per cent to £620 million.

Revenues rose a modest 6 per cent to £3.36 billion, having been hit by a 6 per cent fall in advertising revenue, but a 160bps improvement in the firm’s gross margin delivered record profits.

The company has increased its dividend by 5 per cent to 9.2p.

In response to the results, shares in BSkyB rebounded this morning, and are currently trading up 3.08 per cent at 686p at 10am, having fallen 10 per cent this year.

Jeremy Darroch, BSkyB chief executive, commented, ‘It has been a strong first half with progress on all fronts. Our approach to growth is working well.

‘We're adding more value to the Sky subscription by investing where it matters most to customers, with more great entertainment and ground-breaking innovation like Sky Go.

‘Alongside that, we're improving efficiency behind the scenes so we can expand margins at the same time.’

The broadcaster, which is 38 per cent owned by News International, used the results to announce a new online TV service that will allow new customers to watch Sky movies and sports on flexible tariffs without signing a contract.

Despite the strong performance, Darroch was keen to temper expectations in the face of a ‘tough’ 2012.

He explained, ‘We expect the environment to remain tough in 2012. No consumer business can be immune to these conditions and we will manage any short-term headwinds as they emerge.

‘Staying focused on the long-term opportunity, we've got a strong set of plans to keep delivering for customers and shareholders.’