  The mass-function of dwarf satellite galaxies that are observed around Local
Group galaxies substantially differs from simulations based on cold dark
matter: the simulations predict many more dwarf galaxies than are seen. The
Local Group, however, may be anomalous in this regard. A massive dark satellite
in an early-type lens galaxy at z = 0.222 was recently found using a new method
based on gravitational lensing, suggesting that the mass fraction contained in
substructure could be higher than is predicted from simulations. The lack of
very low mass detections, however, prohibited any constraint on their mass
function. Here we report the presence of a 1.9 +/- 0.1 x 10^8 M_sun dark
satellite in the Einstein-ring system JVAS B1938+666 at z = 0.881, where M_sun
denotes solar mass. This satellite galaxy has a mass similar to the Sagittarius
galaxy, which is a satellite of the Milky Way. We determine the logarithmic
slope of the mass function for substructure beyond the local Universe to be
alpha = 1.1^+0.6_-0.4, with an average mass-fraction of f = 3.3^+3.6_-1.8 %, by
combining data on both of these recently discovered galaxies. Our results are
consistent with the predictions from cold dark matter simulations at the 95 per
cent confidence level, and therefore agree with the view that galaxies formed
hierarchically in a Universe composed of cold dark matter.

Cosmology and Nongalactic Astrophysics