British Sky Broadcasting Group plc; Results For the Nine Months Ended March 31, 2003.Business Editors LONDON--(BUSINESS WIRE)--May 13, 2003 British Sky Broadcasting British Sky Broadcasting (BSkyB — formerly two companies, Sky Television and BSB) is a company that operates Sky Digital, a subscription television service in the UK and the Republic of Ireland. It produces TV content, and owns several TV channels. plc (NYSE NYSE See: New York Stock Exchange : BSY BSY Busy BSY British School of Yoga BSY Bit Sync BSY Busy Line ), the UK-based pay-television broadcasting group, today announced its results for the nine months ended March 31, 2003. -- Net DTH (Direct-To-Home) Typically refers to satellite TV broadcasting directly to a dish antenna on the roof of a house. See DBS. subscriber growth of 150,000 in the quarter to 6.7 million -- DTH revenue increases by 23% to GBP GBP In currencies, this is the abbreviation for the British Pound. Notes: The currency market, also known as the Foreign Exchange market, is the largest financial market in the world, with a daily average volume of over US $1 trillion. 1,726 million -- Advertising revenue increases by 15% to GBP 204 million -- Operating profit Operating profit (or loss) Revenue from a firm's regular activities less costs and expenses and before income deductions. operating profit See operating income. before goodwill and exceptional items increases by 96% to GBP 254 million -- Operating cash inflow in·flow n. 1. The act or process of flowing in or into: an inflow of water; an inflow of information. 2. of GBP 396 million -- Profit before tax, goodwill and exceptional items of GBP 165 million Tony Ball, Chief Executive of British Sky Broadcasting Group plc, said: "We are reporting another strong set of results today. In what is normally a quiet period we have delivered healthy subscriber growth and an operating profit which has almost doubled year on year, thanks to strong revenue growth and sustained cost control. We remain on track to hit all of our targets." Enquiries: Analysts/Investors: Neil Chugani Tel: +011-44-20-7705-3837 Andrew Griffith Tel: +011-44-20-7705-3118 E-mail: investor-relations@bskyb.com Press: Julian Eccles Tel: +011-44-20-7705-3267 Robert Fraser Tel: +011-44-20-7705-3036 E-mail: corporate.communications@bskyb.com Portland: Tim Allan Tel: +011-44-20-7404-5344 Taylor Rafferty: Nikki Sheridan Tel: (212) 889-4350 E-mail: nas@taylor-rafferty.com A conference call for European European emanating from or pertaining to Europe. European bat lyssavirus see lyssavirus. European beech tree fagussylvaticus. European blastomycosis see cryptococcosis. analysts will be held at 8:30 a.m. (BST (convention) BST - British Summer Time. The name for daylight-saving time in the UK GMT time zone. ) today. To register for this, please contact Diane DIANE Diversified Information and Assistance Network (Tennessee Valley Authority) DIANE Direct Information Access Network for Europe DIANE Digital Integrated Attack and Navigation Equipment Barnes at Portland Portland, town, England Portland, town (1991 pop. 12,945), Dorset, S England. It is on the Isle of Portland, a small rocky peninsula. Portland stone has been used in St. Paul's Cathedral and other important London buildings. Lobsters and crabs are harvested. PR on +44 20 7404 5351. In addition, a live webcast of the call will be available (in listen only mode) on Sky's corporate website (www.sky.com/corporate). There will be a separate conference call for US analysts at 10:00 a.m. (EST EST electroshock therapy. EST abbr. electroshock therapy ) today. Details of this call have been sent to US institutions and can be obtained from Nikki Nikki may refer to: Niiki williams who lives in wales... she is a clown an she smells... really bad....
Noun, pl Austral & NZ slang no rules at all [origin unknown] on +1 212 889 4350. OPERATIONAL REVIEW At March 31, 2003 the total number of direct-to-home See DTH. (DTH) digital satellite subscribers in the UK and Ireland Ireland, Irish Eire (âr`ə) [to it are related the poetic Erin and perhaps the Latin Hibernia], island, 32,598 sq mi (84,429 sq km), second largest of the British Isles. was 6,712,000. This represents a net increase of 150,000 in the three months to March 31, 2003 ("the quarter") and keeps Sky comfortably on track to achieve its target of 7 million subscribers by the end of the calendar year. Including both cable and estimated digital terrestrial Dealing with the earth. See terrestrial link. homes from BARB, at least one or more of Sky's channels are now distributed to 12 million homes in the UK and Ireland. DTH churn churn: see butter. for the year to date (annualized annualized Of or relating to a variable that has been mathematically converted to a yearly rate. Inflation and interest rates are generally annualized since it is on this basis that these two variables are ordinarily stated and compared. ) fell to 9.3%, a new record low level of total churn achieved despite the price rise in the quarter. The annualised average revenue per DTH subscriber (ARPU (Average Revenue Per User) A calculation often used to determine the overall value of an application. It is also used to rate particular customers, especially in the wireless space, by comparing someone's account to the overall average. ) in the quarter was GBP 364, an increase of 7% over the same quarter last year and GBP 13 higher than the ARPU for the quarter to December December: see month. 31, 2002. This step change in ARPU reflects the changes to UK retail pricing that took effect from January January: see month. 1, 2003. At March 31, 2003, there were 137,000 subscribers to the Extra Digibox A digibox can refer to either:
Multi-channel See multichannel. television continues its increase in popularity, with viewing share across all UK television homes up 7% on the nine months ended March 31, 2002 ("the comparable period"). During the Easter week In the Anglican and other Latin-rite churches, Easter Week is the week beginning with the Christian feast of Easter and ending a week later on Easter Saturday. In Eastern Orthodoxy, this week is known as Bright Week. and for the first time ever, multi-channel viewing share exceeded both BBC BBC in full British Broadcasting Corp. Publicly financed broadcasting system in Britain. A private company at its founding in 1922, it was replaced by a public corporation under royal charter in 1927. 1 and ITV (1) See interactive TV. (2) (iTV) The code name for Apple's video media hub (see Apple TV). 1, recording a 26% share of viewing in all UK television homes compared to 24% each for BBC1 and ITV1. Multi-channel viewing followed these record audiences in the week after Easter Easter [A.S. Eastre, name of a spring goddess], chief Christian feast, commemorating the resurrection of Jesus after his crucifixion. In the West, Easter is celebrated on the Sunday following the full moon next after the vernal equinox (see calendar); thus, it by beating BBC1 and ITV1 for the second consecutive week. Through the strength and depth of its programming, Sky Sports made a significant contribution to this achievement and also increased its viewing share during the quarter. In particular, on the afternoon of Sunday Sunday: see Sabbath; week. March 2, 2003, Sky Sports attracted 47% of multi-channel viewing during simultaneous live coverage of the Worthington Cup Worthington Cup may refer to:
Manchester (măn`chəstər, –chĕs'tər), city and metropolitan district (1991 pop. 397,400), NW England, on the Irwell, Medlock, Irk, and Tib rivers. United and the World Cup cricket match between England England, the largest and most populous portion of the United Kingdom of Great Britain and Northern Ireland (1991 pop. 46,382,050), 50,334 sq mi (130,365 sq km). It is bounded by Wales and the Irish Sea on the west and Scotland on the north. and Australia Australia (ôstrāl`yə), smallest continent, between the Indian and Pacific oceans. With the island state of Tasmania to the south, the continent makes up the Commonwealth of Australia, a federal parliamentary state (2005 est. pop. . Last month, Sky Sports announced new golf agreements securing the exclusive live coverage of the Ryder Cup Ryder Cup Biennial team golf event first held in 1927. It was originally played between teams of golfers from the U.S. and Britain; since 1979 players opposing the U.S. have been chosen from all of Europe. The trophy was donated by the British seed merchant Samuel Ryder. matches in 2006 and 2008, the US Open until 2009, US PGA Championship The PGA Championship (often referred to as the U.S. PGA Championship outside of North America) is an annual golf tournament conducted by the Professional Golfers Association of America as part of the PGA Tour. until 2007 and World Golf Championship and European Tour events for the next five years. Following on from its success at the Royal Television Society Awards earlier this year, Sky News was honoured in April with a British Academy The British Academy is the United Kingdom's national academy for the humanities and the social sciences. It was established by Royal Charter in 1902, and is a fellowship of more than 800 scholars. The Academy is self-governing and independent. Film and Television Award (BAFTA Baf´ta n. 1. A coarse stuff, usually of cotton, originally made in India. Also, an imitation of this fabric made for export. ) for its coverage of the Soham tragedy. Sky News has also been the 24-hour news channel of choice during the conflict in Iraq. During the first three weeks of the conflict, Sky News consistently out-rated BBC News 24 and the ITV News channel The ITV News Channel was a 24 hour television news channel in the United Kingdom which broadcast from 2000 to 2005. It was available on Sky Digital, NTL:Telewest, Freeview (latterly only between 6am and 6pm) and Analogue Cable presenting the latest national and international news in multi-channel homes, recording an average weekly reach of over 10.5 million individuals and an average weekly viewing share of 5.7%, more than double that of its rivals combined. On April 17, 2003, Sky added to its channel line up with the successful launch of three wholly-owned music channels, The Amp, Flaunt flaunt v. flaunt·ed, flaunt·ing, flaunts v.tr. 1. To exhibit ostentatiously or shamelessly: flaunts his knowledge. See Synonyms at show. 2. , and Scuzz This article is about the television channel. For the Marvel Comics character, see Scuzz (comics). Scuzz is a British music television channel owned and operated by Chart Show Channels. It launched in 2003 and has been advertised as Total Rock. . The three channels feature more extensive interactive opportunities than any previous music channel. Sky One also reached a new milestone over Easter when it showed the 300th episode of its most popular program, the Simpsons. FINANCIAL REVIEW Operating profit before goodwill and exceptional items increased to GBP 254 million, an increase of 96% on the comparable period. This reflects the operational gearing within Sky's business model, with both continued strong top-line performance and a substantial proportion of costs being largely fixed. Total revenues grew by 15% on the comparable period to GBP 2,331 million, whilst operating expenditure rose by just 9% to GBP 2,077 million, generating a net operating margin Net operating margin The ratio of net operating income to net sales. of 11%. DTH revenues increased by 23% to GBP 1,726 million in the nine months ended March 31, 2003 ("the period"), the third successive nine-month period of over 20% growth. This is principally a result of the 14% increase in the average number of DTH subscribers and the continued growth in ARPU. The Group's advertising revenues continue to increase, achieving 15% growth on the comparable period to GBP 204 million, reflecting the first quarter of benefit from the strong share deals negotiated with advertising agencies for calendar 2003, growth in viewing share and the agency commissions earned on the sale of airtime air·time n. 1. The time during which a radio or television station is broadcasting. Also called airspace. 2. The time at which a radio or television program is broadcast. for certain third party channels. Wholesale revenues fell by 34% on the comparable period to GBP 146 million. On a like-for-like basis (excluding the effect of the closure of ITV Digital) the decline was 16%, consistent with the trend in the first half of this financial year. This reduction in revenue is a direct result of the loss of cable subscribers by NTL NTL Nevertheless NTL National Transportation Library NTL Norsk Tjenestemannslag NTL National Training Laboratories NTL Never Too Late NTL Nothing to Lose NTL National Training Laboratory NTL None the Less NTL Number Theory Library and Telewest over the last 12 months and the fall in cable ARPU as the number of premium units taken by subscribers has declined. Conversely con·verse 1 intr.v. con·versed, con·vers·ing, con·vers·es 1. To engage in a spoken exchange of thoughts, ideas, or feelings; talk. See Synonyms at speak. 2. , the penetration of Sky's basic channels, Sky One and Sky News, has increased to 100% of all cable homes and Sky Sports News Sky Sports News (SSN) is a 24-hour sports news channel in the United Kingdom. It is run by BSkyB whose sports channels include Sky Sports 1, 2, 3, and Xtra, as well as Sky Sports HD1 and HD2. has now increased its penetration to 85% of digital cable homes. Sky remains in ongoing discussions with the cable operators in order to improve the number of Sky premium channels taken by their subscribers. Interactive revenues increased by 7% on the comparable period to GBP 146 million. Sky Active revenues performed strongly, increasing by 12% on the comparable period to GBP 74 million. This increase was principally driven by further usage of interactive advertising, SkyBuy (Sky's wholly owned retail business) and increased revenues from interactive programming. During the quarter, ITV embraced interactive applications on digital satellite for the first time across the UK with 'Who Wants To Be A Millionaire?' and has now followed this with the current series of 'I'm A Celebrity Get Me Out Of Here.' Interactivity will again be prominent on Channel 4's Big Brother, to be broadcast at the end of May. While the gross revenues of SkyBet increased by 3% on the comparable period to GBP 72 million, there has been a continued improvement in the mix of revenues between low margin telephone betting and high margin interactive television betting. The launch of Sky Bet Vegas in the quarter, as well as growth in the existing Sports betting Sports betting is the general activity of predicting sports results by making a wager on the outcome of a sporting event. Perhaps more so than other forms of gambling, the legality and general acceptance of sports betting varies from nation to nation. business, has resulted in interactive television betting generating over three times the volume of bets than in the comparable period. Programming costs increased by GBP 122 million on the comparable period to GBP 1,168 million. The increase in sports costs was mainly due to increased contractual rights A contractual right is a claim, on other persons, that is acknowledged and perhaps reciprocated among the principals associated with that claim. Specialized contractual rights exist as part of a "contract" or agreement between persons to whom these rights belong. costs and the Ryder Cup which is a bi-annual event, partly offset by savings from dropping agreements to televise tel·e·vise tr. & intr.v. tel·e·vised, tel·e·vis·ing, tel·e·vis·es To broadcast or be broadcast by television. [Back-formation from television. UEFA UEFA Union of European Football Associations UEFA n abbr (= Union of European Football Associations) → U.E.F.A. Cup Football, Scottish Premier League The Clydesdale Bank Scottish Premier League commonly known as the Scottish Premier League, Premier League or SPL is a professional league competition for football clubs located at the top level of the Scottish football league system - above the Scottish Football Football and Six Nations Rugby. A 25% increase in the number of mega-hit movies delivered by the movie studios also contributed to the increase. Third party channel costs increased on the comparable period mainly due to a rise in the average number of subscribers. This was partly offset by savings from channel rate reductions for UKTV UKTV United Kindom Television (TV channel) and Sci-Fi, as well as Cartoon Network For Cartoon Network outside of the United States, see . Cartoon Network is a cable television network created by Turner Broadcasting which primarily shows animated programming. whose agreement was renewed during the quarter achieving at least a 15% saving on the current terms. Other operating costs operating costs npl → gastos mpl operacionales increased by GBP 56 million on the comparable period to GBP 909 million due to increased supply chain costs and administration costs offset by a reduction in customer relationship management (CRM (Customer Relationship Management) An integrated information system that is used to plan, schedule and control the presales and postsales activities in an organization. ) costs and transmission costs. Marketing costs are included in other operating costs and are broadly in line with the comparable period at GBP 312 million. Subscriber acquisition cost (SAC Sac: see Sac and Fox. SAC - 1. An early system on the Datatron 200 series. [Listed in CACM 2(5):16 (May 1959)]. ) remains at GBP 210 year-to-date Year-to-date (YTD) The period beginning at the start of the calendar year up to the current date. , representing a reduction of GBP 25 on the comparable period. This is principally due to lower set-top box The cable TV box that sits on "top" of the TV "set," although it is often located several feet away in an equipment rack. The set-top box descrambles the premium channels and provides a tuner for the higher cable numbers that very old TVs did not support. costs and an increase in the use of more cost-effective cost-effective, n the minimal expenditure of dollars, time, and other elements necessary to achieve the health care result deemed necessary and appropriate. routes to market. Sky remains focused on continuing to drive reductions in SAC. EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) A metric used to show a company's profitability, but not its cash flow. EBITDA became popular in the 1980s to show the potential profitability of leveraged buyouts, but has become before exceptional items increased by GBP 135 million from GBP 190 million in the comparable period to GBP 325 million. The Group's share of the operating profits of joint ventures increased to GBP 1 million in the period from an operating loss operating loss The excess of operating expenses over revenue. As with operating income, operating losses exclude revenues and expenses from operations that are not considered a regular part of the business. Also called deficit. Compare operating income. of GBP 74 million in the comparable period. This principally reflects the cessation cessation Vox populi The stopping of a thing. See Smoking cessation. of equity accounting for the Group's then share of losses incurred by KirchPayTV from February 8, 2002. After its share of the results of joint ventures, goodwill and exceptional items, the Group made a profit before tax of GBP 54 million. The profit after tax in the period was GBP 33 million, resulting in earnings per share of 1.7 pence pence n. Chiefly British A plural of penny. pence Noun a plural of penny USAGE: Since the decimalization of British currency and the introduction of the abbreviation p, compared to a loss per share of 73.4 pence for the comparable period. The tax charge for the period includes a current tax charge of GBP 49 million and a deferred tax charge of GBP 3 million due to the Group moving into profitability. This is offset by a GBP 33 million deferred tax credit principally arising from the recognition of a deferred tax asset on certain trading losses The following contains a list of trading losses which eventually forced major corporations to go bankrupt or restructure parts of their organisation. This list is not exhaustive. , net of an adjustment arising from the prior year. After Sky's share of joint ventures' tax (GBP 2 million), the charge for the period was GBP 21 million (GBP 20 million for the quarter). In the quarter, the group's underlying effective tax rate, ignoring the effect of joint ventures, exceptional items and goodwill, remained at 31% compared to a UK statutory rate of 30%. GBP 14 million of ACT has been offset against the group's tax liability for the quarter. At March 31, 2003, the Group had GBP 27 million of Advanced Corporation Tax (ACT) expected to be recoverable in less than one year and GBP 37 million of ACT recoverable in more than one year. As a result of non-cash items that include depreciation of GBP 72 million and amortisation Noun 1. amortisation - the reduction of the value of an asset by prorating its cost over a period of years amortization reduction, step-down, diminution, decrease - the act of decreasing or reducing something 2. of GBP 93 million, and a positive movement in working capital of GBP 70 million, the Group recorded an operating cash inflow of GBP 396 million for the period. This represented the conversion of 156% of operating profit before goodwill to cash inflow. After taking into account cash outflows principally comprising interest payments of GBP 116 million, capital expenditure of GBP 64 million and corporation tax of GBP 8 million, Sky reduced its net debt by GBP 211 million to GBP 1,317 million from GBP 1,528 million at June 30, 2002. CORPORATE On March 20, 2003 the Group signed a new, five-year, GBP 600 million Revolving Credit Revolving Credit A line of credit where the customer pays a commitment fee and is then allowed to use the funds when they are needed. It is usually used for operating purposes, fluctuating each month depending on the customers current cash flow needs. Facility. The new facility was used to cancel the Group's GBP 750 million facility, originally due to mature in June 2004. In addition, the Group's existing GBP 300 million facility has been reduced to GBP 200 million and will mature, as before, in June 2004. Total available facilities now total GBP 800 million, and will reduce to GBP 600 million from June 2004, in line with the anticipated reduced capital requirements Capital requirements Financing required for the operation of a business, composed of long-term and working capital plus fixed assets. of the Group, which has been cashflow positive since January 2002.
Appendix 1
Distribution of Sky Channels
Prior Year
Q3 2001/02 Q1 2002/03 Q2 2002/03 Q3 2002/03
As at as at as at as at
03/31/02 09/30/02 12/31/02 03/31/03
DTH Digital(1),(2) 5,887,000 6,318,000 6,562,000 6,712,000
Cable - UK 3,601,000 3,405,000 3,355,000 3,312,000
Cable - Ireland 610,000 594,000 596,000 604,000
Total Sky pay homes 10,098,000 10,317,000 10,513,000 10,628,000
DTT - UK(3) - - 813,000 1,370,000
Total Sky homes 10,098,000 10,317,000 11,326,000 11,998,000
% of all UK homes(4) 41% 42% 46% 48%
DTH Churn rate for year to
date (annualised) 10.5%(5) 9.6% 9.4% 9.3%
(1): Includes DTH subscribers in Ireland (279,000 as at March 31,
2003).
(2): DTH subscribers includes only primary subscriptions to Sky (no
additional units are counted for Sky+ or Extra Digibox
subscriptions).
(3): BARB estimates taken from the beginning of each month
(4): Total UK homes estimated by BARB, calculated using Total Sky
homes.
(5): Excludes analogue churn up to September 27, 2001 and the effect
of the termination of the analogue service on September 27, 2001.
British Sky Broadcasting plc
Consolidated Profit and Loss Account
for the nine months ended March 31, 2003
----------------------------------------------------------------------
2002/2003
Before Nine months
goodwill and Goodwill and ended March
exceptional exceptional 31, 2003
items items Total
GBPm GBPm GBPm
Notes (unaudited) (unaudited) (unaudited)
----------------------------------------------------------------------
Turnover: Group and share
of joint ventures'
turnover 2,387.9 - 2,387.9
Less: share of joint
ventures' turnover (57.4) - (57.4)
Group turnover 1 2,330.5 - 2,330.5
----------------------------------------------------------------------
Operating expenses, net 2 (2,076.7) (92.7) (2,169.4)
----------------------------------------------------------------------
EBITDA 325.4 - 325.4
Depreciation (71.6) - (71.6)
Amortisation - (92.7) (92.7)
----------------------------------------------------------------------
Operating profit (loss) 253.8 (92.7) 161.1
----------------------------------------------------------------------
Share of operating
results of joint
ventures 3 1.3 - 1.3
Joint ventures' goodwill
amortisation, net - - -
Profit on sale of fixed
asset investment - - -
Amounts written off fixed
asset investments, net - (18.3) (18.3)
Release of provision for
loss on disposal of
subsidiary - - -
Profit (loss) on ordinary
activities before
interest and taxation 255.1 (111.0) 144.1
----------------------------------------------------------------------
Interest receivable and
similar income 2.9 - 2.9
Interest payable and
similar charges (93.1) - (93.1)
Profit (loss) on ordinary
activities before
taxation 164.9 (111.0) 53.9
----------------------------------------------------------------------
Taxation charge on profit
(loss) on ordinary
activities (20.8) - (20.8)
Profit (loss) on ordinary
activities after
taxation 144.1 (111.0) 33.1
----------------------------------------------------------------------
Equity dividends - paid
and proposed -
Retained profit (loss) 33.1
----------------------------------------------------------------------
Earnings (loss) per share
- basic 7.5p (5.8p) 1.7p
Earnings (loss) per share
- diluted 7.4p (5.7p) 1.7p
----------------------------------------------------------------------
2001/2002
Before Nine months
goodwill and Goodwill and ended March
exceptional exceptional 31, 2002
items items Total
GBPm GBPm GBPm
Notes (unaudited) (unaudited) (unaudited)
----------------------------------------------------------------------
Turnover: Group and share
of joint ventures'
turnover 2,147.2 - 2,147.2
Less: share of joint
ventures' turnover (119.0) - (119.0)
Group turnover 1 2,028.2 - 2,028.2
----------------------------------------------------------------------
Operating expenses, net 2 (1,898.9) (111.3) (2,010.2)
----------------------------------------------------------------------
EBITDA 189.6 (22.3) 167.3
Depreciation (60.3) - (60.3)
Amortisation - (89.0) (89.0)
----------------------------------------------------------------------
Operating profit (loss) 129.3 (111.3) 18.0
----------------------------------------------------------------------
Share of operating
results of joint
ventures 3 (73.5) - (73.5)
Joint ventures' goodwill
amortisation, net - (1,069.9) (1,069.9)
Profit on sale of fixed
asset investment - 2.3 2.3
Amounts written off fixed
asset investments, net - (60.0) (60.0)
Release of provision for
loss on disposal of
subsidiary - 10.0 10.0
Profit (loss) on ordinary
activities before
interest and taxation 55.8 (1,228.9) (1,173.1)
----------------------------------------------------------------------
Interest receivable and
similar income 10.1 - 10.1
Interest payable and
similar charges (115.8) - (115.8)
Profit (loss) on ordinary
activities before
taxation (49.9) (1,228.9) (1,278.8)
----------------------------------------------------------------------
Taxation charge on profit
(loss) on ordinary
activities (16.6) (88.9) (105.5)
Profit (loss) on ordinary
activities after
taxation (66.5) (1,317.8) (1,384.3)
----------------------------------------------------------------------
Equity dividends - paid
and proposed -
Retained profit (loss) (1,384.3)
----------------------------------------------------------------------
Earnings (loss) per share
- basic (3.5p) (69.9p) (73.4p)
Earnings (loss) per share
- diluted (3.5p) (69.9p) (73.4p)
----------------------------------------------------------------------
British Sky Broadcasting Group plc
Consolidated Profit and Loss Account
for the three months ended March 31, 2003
----------------------------------------------------------------------
Three
months
Before ended
goodwill and Goodwill and March 31,
exceptional exceptional 2003
items items Total
GBPm GBPm GBPm
(unaudited) (unaudited) (unaudited)
----------------------------------------------------------------------
Turnover: Group and share of
joint ventures' turnover 838.1 - 838.1
Less: share of joint ventures'
turnover (18.9) - (18.9)
Group turnover 819.2 - 819.2
----------------------------------------------------------------------
Operating expenses, net (723.7) (29.0) (752.7)
----------------------------------------------------------------------
EBITDA 122.9 - 122.9
Depreciation (27.4) - (27.4)
Amortisation - (29.0) (29.0)
----------------------------------------------------------------------
Operating profit (loss) 95.5 (29.0) 66.5
----------------------------------------------------------------------
Share of operating results of
joint ventures (0.4) - (0.4)
Joint ventures' goodwill
amortisation - - -
Amounts written back to fixed
asset investments - 0.5 0.5
Profit (loss) on ordinary
activities before interest
and taxation 95.1 (28.5) 66.6
----------------------------------------------------------------------
Interest receivable and
similar income 0.9 - 0.9
Interest payable and similar
charges (30.2) - (30.2)
Profit (loss) on ordinary
activities before taxation 65.8 (28.5) 37.3
----------------------------------------------------------------------
Tax (charge) credit on profit
(loss) on ordinary activities (21.8) 1.5 (20.3)
Profit (loss) on ordinary
activities after taxation 44.0 (27.0) 17.0
----------------------------------------------------------------------
Equity dividends - paid and
proposed -
Retained profit (loss) 17.0
----------------------------------------------------------------------
Earnings (loss) per share
- basic 2.3p (1.4p) 0.9p
Earnings (loss) per share
- diluted 2.3p (1.4p) 0.9p
----------------------------------------------------------------------
Three
months
Before ended
goodwill and Goodwill and March 31,
exceptional exceptional 2002
items items Total
GBPm GBPm GBPm
(unaudited) (unaudited) (unaudited)
----------------------------------------------------------------------
Turnover: Group and share of
joint ventures' turnover 733.5 - 733.5
Less: share of joint ventures'
turnover (25.9) - (25.9)
Group turnover 707.6 - 707.6
----------------------------------------------------------------------
Operating expenses, net (648.4) (51.5) (699.9)
----------------------------------------------------------------------
EBITDA 78.5 (22.3) 56.2
Depreciation (19.3) - (19.3)
Amortisation - (29.2) (29.2)
----------------------------------------------------------------------
Operating profit (loss) 59.2 (51.5) 7.7
----------------------------------------------------------------------
Share of operating results of
joint ventures (13.7) - (13.7)
Joint ventures' goodwill
amortisation - 13.5 13.5
Amounts written back to fixed
asset investments - - -
Profit (loss) on ordinary
activities before interest
and taxation 45.5 (38.0) 7.5
----------------------------------------------------------------------
Interest receivable and
similar income 1.6 - 1.6
Interest payable and similar
charges (35.5) - (35.5)
Profit (loss) on ordinary
activities before taxation 11.6 (38.0) (26.4)
----------------------------------------------------------------------
Tax (charge) credit on profit
(loss) on ordinary activities (11.1) 6.7 (4.4)
Profit (loss) on ordinary
activities after taxation 0.5 (31.3) (30.8)
----------------------------------------------------------------------
Equity dividends - paid and
proposed -
Retained profit (loss) (30.8)
----------------------------------------------------------------------
Earnings (loss) per share
- basic 0.0p (1.6p) (1.6p)
Earnings (loss) per share
- diluted 0.0p (1.6p) (1.6p)
----------------------------------------------------------------------
Notes:
1. Turnover
The Group's turnover, whilst deriving from one class of business, has
been analysed as follows:
2002/2003 2001/2002
Nine months Nine months
ended ended
March 31 March 31
GBPm GBPm
(unaudited) (unaudited)
Direct-To-Home subscribers 1,725.5 1,400.1
Cable and DTT subscribers (i) 145.7 221.1
Advertising 204.1 178.2
Interactive 146.2 136.3
Other 109.0 92.5
2,330.5 2,028.2
---------------------------------------------------------
(i) Excludes revenue from DTT subscribers from April 30, 2002 when the
ITV Digital pay television service was closed.
2. Operating expenses, net
2002/2003
Before Nine months
goodwill and Goodwill and ended
exceptional exceptional March 31
items items Total
GBPm GBPm GBPm
(unaudited) (unaudited) (unaudited)
Programming (i) 1,167.9 - 1,167.9
Transmission and related
functions (i) 108.4 - 108.4
Marketing 311.5 - 311.5
Subscriber management 242.1 - 242.1
Administration (ii) 179.9 92.7 272.6
Betting 66.9 - 66.9
2,076.7 92.7 2,169.4
----------------------------------------------------------------------
2001/2002
Before Nine months
goodwill and Goodwill and ended
exceptional exceptional March 31
items items Total
GBPm GBPm GBPm
(unaudited) (unaudited) (unaudited)
Programming (i) 1,045.9 - 1,045.9
Transmission and related
functions (i) 110.3 - 110.3
Marketing 307.6 - 307.6
Subscriber management 217.3 - 217.3
Administration (ii) 152.1 111.3 263.4
Betting 65.7 - 65.7
1,898.9 111.3 2,010.2
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(i) The amounts shown are net of GBP 9.1 million (2001/2002: nine
months ended March 31 GBP 9.3 million) receivable from the
disposal of programming rights not acquired for use by the Group,
and GBP 18.7 million (2001/2002: nine months ended March 31 GBP
17.8 million) in respect of the provision to third party
broadcasters of spare transponder capacity.
(ii) Included within goodwill and exceptional items for the nine
months ended March 31, 2003 is a charge in respect of goodwill
amortisation of GBP 92.7 million (2001/2002: nine months ended
March 31 GBP 89.0 million). In the nine months ended March 31,
2002, a charge of GBP 22.3 million in respect of an exceptional
operating provision was made against ITV Digital programming
debtors following the closure of the ITV Digital pay television
operation on April 30, 2002.
3. Share of operating results of joint ventures
2002/2003 2001/2002
Nine months Nine months
ended ended
March 31 March 31
GBPm GBPm
(unaudited) (unaudited)
KirchPayTV GmbH & Co KgaA
("KirchPayTV") operating loss - (70.0)
Programming joint ventures'
operating profit (loss), net 1.3 (3.5)
1.3 (73.5)
---------------------------------------------------------
This relates to the Group's equity share of the operating results of
the Group's joint ventures.
KirchPayTV By February 8, 2002, the Group considered that its relationship with KirchPayTV had irrevocably ir·rev·o·ca·ble adj. Impossible to retract or revoke: an irrevocable decision. ir·rev changed and that the Group has not exercised significant influence since that date. Therefore the Group considered that from February 8, 2002 it was no longer appropriate to account for its interest in KirchPayTV as a joint venture, and ceased accounting for KirchPayTV's losses using the gross equity method from that date. |
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