Satellite broadcaster Sky PLC (LON:SKY) reported higher revenue and profits but costs and customer gains and losses rose.
Sky said group revenue increased 5% to £8.7bn on a 12% lift in operating profit to £1.1bn in the nine months to the end of March.
But total costs rose 4% and the group's customer "churn" increased in all its territories as the company faced increased competition.
In the UK & Ireland, where Sky is facing a growing challenge from BT PLC (LON:BT.A) and its new sports channels, churn rose to 10.7% of the customer base from 10.1%.
Churn was also up in Austria, Germany and Italy, where Sky is integrating the recently acquired Sky Deutschland and Sky Italia operations into its business.
In total, Sky added 177,000 customers, taking its total customer base to 21.7 million, and increased the total number of products by 686,000.
Chief executive Jeremy Darroch said: "It's been another strong quarter for Sky."
Shares in Sky fell 26p, or 2.5%, to 1002p in early trading.
Richard Hunter at Wilson King Investment Management said Sky continued to make progress, although against competitive challenges "which show little sign of abating".
"Growth in customer numbers and products remains impressive, whilst innovations such as Sky Q and new deals including a tie-up with Sony as well as Formula 1 bode well," he said.
"Less positively, profits at Sky Deutschland and Sky Italia have yet to materialise, whilst the loss of the UEFA Champions League rights are an affirmation that Sky will not have its own way in the pay TV space.
"In addition, the churn figure in each of its major constituencies ticked upwards."