British Sky Broadcasting has boosted operating profits by 34% to £805m as the cost of sports fell by £56m to £747m.
Sports costs, which account for 46% of total programming costs, dropped thanks to 'contractual savings in the renewal of sports contracts led by the Premier League and the Football Association rights.
Sky reported that exclusive broadcast rights had been secured during the year in respect of all international and domestic cricket series until 2009, England autumn rugby internationals and Zurich premiership matches until 2010.
Revenues for the satellite broadcaster in the 12 months to 30 June this year climbed 11% to £4.05bn with post-tax profit increasing by 32% to £425m.
Chief executive James Murdoch said: 'The team delivered a set of results this year that demonstrates the health of our business and the strong position that the company occupies in this rapidly-evolving marketplace.
'We remain focused on providing the leading entertainment service in the UK and Ireland that continues to meet the changing needs of our customers and their families, offering great value and world-beating quality.
Wholesale revenue increased by 2% to £219m. Sky reported that this was largely driven by changes to wholesale prices in January and September 2004 and the payment for carriage of Sky Sports Extra and PremPlus.