The mass-function of dwarf satellite galaxies that are observed around Local Group galaxies substantially differs from simulations 1-5 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 6, 7 . A massive dark satellite in an early-type lens galaxy at z = 0.222 was recently found 8 using a new method based on gravitational lensing 9, 10 , 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 × 10 8 M ⊙ dark satellite in the Einstein-ring system JVAS B1938+666 (ref. 11) at z = 0.881, where M ⊙ denotes solar mass. This satellite galaxy has a mass similar to the Sagittarius 12 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 α = 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 13-15 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.The gravitational lens system JVAS B1938+666 (ref. 11) has a bright infrared background galaxy at redshift 2.059 (ref. 16), which is gravitationally lensed into an almost complete Einstein ring of diameter ∼ 0.9 arcseconds by a massive elliptical galaxy at redshift 0. 881 (ref. 17). The bright, highly-magnified Einstein ring made this system an excellent candidate in which to to search for surface brightness anomalies caused by very low mass (dark matter) substructure in the halo around the high redshift elliptical lens galaxy. The presence of a low-mass substructure (e.g. a luminous or dark satellite galaxy; also denoted as substructure hereafter) in the lens galaxy 1