BSkyB said on Friday its first-quarter pre-tax profits fell 27 per cent, largely because of increased marketing costs in its push to increase broadband sales and a greater-than-expected take-up of its Sky+ service.

Shares in the UK pay-television provider fell by almost 5 per cent to 657p, their biggest drop since November 2005. Profits fell to £121m in the first three months from £166m in the same period last year.