British Sky Broadcasting Group plc; Results For the Nine Months Ended March 31, 2002; Sky Delivers Growth On All Fronts.Business Editors LONDON--(BUSINESS WIRE)--May 10, 2002 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, 2002. -- Net DTH subscriber growth of 171,000 in quarter to 5.9 million -- ARPU up 11% to (pound)341 ($485), including interactive ARPU of (pound)14 ($20) -- DTH revenue increases by 26% to (pound)1,400 million ($1,992 million) -- Revenue increases by 21% to (pound)2,028 million ($2,887 million) -- EBITDA before exceptional items increases by 35% to (pound)190 million ($270 million) -- Operating profit before goodwill and exceptional items increases by 33% to(pound)129 million ($184 million) Tony Ball, Chief Executive of British Sky Broadcasting Group plc, said: "Sky is reporting another strong set of results today, demonstrating that Sky digital continues to make progress on all fronts. 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. increased by 33% to (pound)129 million ($184 million) and positive free cashflow in the quarter resulted in a reduction in net debt of (pound)140 million ($199 million)." A conference call for analysts will be held at 8:30 a.m. (GMT (Greenwich Mean Time) See UTC. GMT - Universal Time 1 ) 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 Bate bate 1 tr.v. bat·ed, bat·ing, bates 1. To lessen the force or intensity of; moderate: "To his dying day he bated his breath a little when he told the story" 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 + 011 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 (212) 889 4350. BUSINESS REVIEW Operational At March 31, 2002 the total number of direct-to-home See DTH. (DTH (Direct-To-Home) Typically refers to satellite TV broadcasting directly to a dish antenna on the roof of a house. See DBS. ) 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 5,887,000. This represents a net increase of 171,000 in the three months to March 31, 2002 ("the quarter"). Digital 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. ) stands at 10.5%. The quarterly annualized average revenue per DTH subscriber subscriber, n the person, usually the employee, who represents the family unit in relation to the prepayment plan. Other family members are dependents. Also called certificate holders or enrollees. (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 (pound)341 ($485), an increase of 11% over the three months ended March 31, 2001. The quality and popularity of Sky's channels was demonstrated in the quarter, as share of viewing in all UK homes increased by 18% to 6.7%, up from 5.7% on the prior year. Sky One is achieving record audiences for popular shows like Star Trek  Editing of this page by unregistered or newly registered users is currently disabled due to vandalism. Enterprise, Futurama This article is about the television series. For the exhibit and ride, see Futurama (New York World's Fair). Futurama is an Emmy Award-winning animated American sitcom created by Matt Groening, who also created The Simpsons , Buffy buffy (buf´e) of the color buff; light yellowish pink to yellow, including orange-yellow to yellow-brown. the Vampire vampire, in folklore, animated corpse that sucks the blood of humans. Belief in vampires has existed from the earliest times and has given rise to an amalgam of legends and superstitions. Slayer and Malcolm in the Middle Malcolm in the Middle is a seven-time Emmy-winning,[1] one-time Grammy-winning[1] and seven-time Golden Globe-nominated[1] American sitcom created by Linwood Boomer for the Fox Network. , helping it to its highest ever share of viewing in the quarter. The quality of Sky News' coverage was recognized again when it was awarded 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. of 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 September September: see month. 11th terrorist attacks. It is the first time the award for news has been given to a non-terrestrial broadcaster. On Sky Sports, average audiences for Premier League football are up 7% on last season as viewers VIEWERS. Persons appointed by the courts to see and examine certain matters, and make a report of the facts together with their opinion to the court. In practice they are usually appointed to lay out roads and the like. Vide Experts. enjoy a close and exciting end to the season. Both BARB and the ITC ITC (Brit) n abbr (= Independent Television Commission) → Fernseh-Aufsichtsgremium ITC n abbr (BRIT) (= Independent Television Commission) → published new figures during the quarter showing for the first time that the majority of British people See :
British Overseas Territories had access to multichannel Using two or more paths for transmission or processing. It can refer to a variety of architectures including (1) multiple I/O channels between the CPU and peripheral devices, (2) multiple wires in a cable, (3) multiple "logical" channels within a single wire or fiber or (4) multiple television. This milestone “Milemarker” redirects here. For the American indie rock band, see Milemarker (band). A milestone or kilometre sign is one of a series of numbered markers placed along a road at regular intervals, typically at the side of the road or in a median. was reached just as, in the quarter, multichannel overtook o·ver·took v. Past tense of overtake. ITV (1) See interactive TV. (2) (iTV) The code name for Apple's video media hub (see Apple TV). 1 to become the biggest provider of commercial audiences among adults aged between 16 and 34. On March 4, 2002, Sky announced a new five-year carriage carriage, wheeled vehicle, in modern usage restricted to passenger vehicles that are drawn or pushed, especially by animals. Carriages date from the Bronze Age; early forms included the two-wheeled cart and four-wheeled wagon for transporting goods. deal with Flextech and UKTV UKTV United Kindom Television (TV channel) . The agreement ensures that Flextech's wholly-owned channels and the UKTV services, jointly owned by Flextech and the 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. , will continue to be available to Sky on attractive terms until the end of 2006. During the quarter, another fourteen television channels, including motor racing's F1 digital+, and six radio stations joined the digital satellite platform. On April 23, 2002, the four Irish terrestrial television Terrestrial television is a term which refers to modes of television broadcasting which do not involve satellite transmission. [1]. The term is uncommon in the United States, and more common in Europe. channels - RTE (1) See runtime engine. (2) (Real-Time Executive) The operating system used in the HP 1000 series. See HP 1000. 1, Network 2, TV3 and TG4 - became available to subscribers in the Republic of Ireland. Financial Sky continues to increase its revenue and profitability year on year and is now generating positive free cashflow. Operating profit before goodwill and exceptional items for the period increased to (pound)129 million ($184 million), an increase of 33% compared with (pound)97 million ($138 million) for the nine months to March 31, 2001 ("the comparable period"). DTH revenues increased by (pound)286 million ($407 million) (26%) to (pound)1,400 million ($1,992 million) as a result of a 15% increase in the average number of DTH subscribers, and an 11% increase in core ARPU to (pound)327 ($465). Wholesale revenues continued to disappoint dis·ap·point v. dis·ap·point·ed, dis·ap·point·ing, dis·ap·points v.tr. 1. To fail to satisfy the hope, desire, or expectation of. 2. as the number of cable subscribers declined in the quarter. Over the nine month period, an increase in the average number of cable and digital terrestrial Dealing with the earth. See terrestrial link. ("DTT DTT Deloitte Touche Tohmatsu (Deloitte & Touch Global Operations) DTT Dithiothreitol (cytology reagent) DTT Digital Terrestrial Television DTT Discrete Trial Training ") subscribers was almost wholly offset by a decrease in the average number of premium channels taken by both cable and DTT subscribers. Consequently cable and DTT revenue increased by (pound)2 million ($3 million) in the period to (pound)221 million ($315 million). The downturn Downturn The transition point between a rising, expanding economy to a falling, contracting one. downturn A decline in security prices or economic activity following a period of rising or stable prices or activity. in the advertising market persisted throughout the quarter. The Group's advertising revenue fell by 11% on the comparable period to (pound)178 million ($253 million). Interactive revenues for the period were (pound)136 million ($194 million), of which (pound)70 million ($100 million) related to betting via interactive television, the internet and the telephone. Interactive ARPU was (pound)14 ($20), an increase of 23% on the comparable period. Programming costs for the period increased by (pound)215 million ($306 million) to (pound)1,046 million ($1,489 million), principally as a result of the new Premier League contract and volume related increases in movie and third party channel costs. Other operating costs operating costs npl → gastos mpl operacionales for the period increased by (pound)110 million ($157 million) to (pound)853 million ($1,214 million) due to the increased cost of subscriber management, the consolidation of interactive costs and higher gaming costs in line with the growth in gaming revenues. Included in other operating costs are marketing costs of (pound)308 million ($438 million), an increase of 6% on the comparable period. The increase reflects the inclusion of BiB's set top box subsidy subsidy, financial assistance granted by a government or philanthropic foundation to a person or association for the purpose of promoting an enterprise considered beneficial to the public welfare. , which was not consolidated con·sol·i·date v. con·sol·i·dat·ed, con·sol·i·dat·ing, con·sol·i·dates v.tr. 1. To unite into one system or whole; combine: in the comparable period, partly offset by reductions in above-the-line spending. On a like-for-like basis, the acquisition cost per subscriber has fallen from approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. (pound)250 ($356) to (pound)235 ($334). This reduction was primarily achieved through a combination of lower set top box costs and increasing use of lower cost direct routes to market. 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 for the period before exceptional items increased by 35% from (pound)140 million ($199 million) to (pound)190 million ($270 million). As of March 27, 2002, the date on which ITV Digital was put into administration, the Group had balances owed to it and unprovided un·pro·vid·ed adj. Not supplied, furnished, or equipped. un  pro·vid for, in
respect of programming licensed to ITV Digital, of (pound)22 million
($32 million). On April 30, 2002, the joint administrators of ITV
Digital announced the closure of pay television services on the platform
and their intention to close the administration. Accordingly, the Group
has made an exceptional operating provision against the whole of this
balance in the quarter.The Group's share of the operating losses 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 joint ventures was reduced from (pound)175 million ($249 million) in the comparable period to (pound)74 million ($105 million) in the period. KirchPayTV accounted for (pound)70 million ($100 million) of these losses. After its share of the results of joint ventures, goodwill and exceptional items, the Group made a loss before taxation of (pound)1,279 million ($1,820 million). The loss after tax in the period was (pound)1,384 million ($1,970 million). The Group's 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. was (pound)203 million ($289 million) in the quarter, compared to an operating cash inflow of (pound)7 million ($10 million) in the three months ended March 31, 2001. This included a positive movement in working capital (principally related to the timing of payments to sports bodies) of (pound)149 million ($212 million). After capital expenditure of (pound)28 million ($40 million), net interest payments of (pound)56 million ($80 million) and other net inflows of (pound)21 million ($30 million), net debt decreased by (pound)140 million ($199 million) to (pound)1,693 million ($2,409 million). KirchPayTV On February February: see month. 8, 2002, BSkyB BSkyB British Sky Broadcasting announced that it had written down the carrying value Carrying Value Also know as "book value," it is a company's total assets minus intangible assets and liabilities, such as debt. Notes: This is different than market value, as it can be higher or lower depending on the circumstances. of its investment in KirchPayTV to nil. The Group considers that, by February 8, 2002, the relationship between BSkyB and 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 (as defined by UK Accounting Standards) since that date. Based on the above, the Group believes that from February 8, 2002 it was no longer appropriate to account for its interest in KirchPayTV as a joint venture, and has therefore ceased accounting for KirchPayTV's losses using the gross equity method from that date. The Group has no intention of providing any future funding to KirchPayTV and the Group, on a consolidated basis, continues to have no financial commitments, outstanding financial liabilities or contingent liabilities Contingent Liability 1. The possibility of an obligation to pay certain sums dependent on future events. 2. Defined obligations by a company that must be met, but the probability of payment is minimal. Notes: 1. in respect of KirchPayTV. As a result, an amount has been released from the provision against the carrying value of the investment made at December December: see month. 31, 2001 matching BSkyB's share of KirchPayTV's losses for the period from January January: see month. 1, 2002 to February 8, 2002. On May 8, 2002, KirchPayTV filed for insolvency insolvency Condition in which liabilities exceed assets so that creditors cannot be paid. It is a financial condition that often precedes bankruptcy. In the context of equity, insolvency is the inability to pay debts as they become due; insolvency under the balance-sheet due to illiquidity and over-indebtedness. KirchPayTV management informed the Group that Taurus Taurus, in astronomy Taurus [Lat.,= the bull], in astronomy, constellation NW of Orion and lying on the ecliptic (the sun's apparent path through the heavens) between Gemini and Aries; it is one of the constellations of the zodiac. Holding, the majority shareholder of KirchPayTV, was unable to continue to make funding support available to KirchPayTV and none of the other existing shareholders, banks or new investors were willing to provide funding to KirchPayTV to avoid an insolvency filing. The Group continues to monitor the situation carefully insofar in·so·far adv. To such an extent. Adv. 1. insofar - to the degree or extent that; "insofar as it can be ascertained, the horse lung is comparable to that of man"; "so far as it is reasonably practical he should practice as it relates to its investment in KirchPayTV and its put option to Taurus Holding. The Group will seek to utilize its put option in BSkyB's shareholders' best interests. However, if the current liquidity issues of Taurus Holding are not adequately resolved, the Group believes that it is unlikely to receive a significant amount, if any amount, in the event of the Group exercising the put option. Corporate On February 27, 2002, the Office of Fair Trading The Office of Fair Trading or OFT is a non-ministerial government department of the United Kingdom, established by the Fair Trading Act 1973, which enforces both consumer protection and competition law, acting as the UK's economic regulator. (OFT) informed Sky that it would not take a decision regarding the cable distribution agreement which was notified to the OFT by Sky and 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 in October October: see month. 2000. The distribution agreement, which was conditional Subject to change; dependent upon or granted based on the occurrence of a future, uncertain event. A conditional payment is the payment of a debt or obligation contingent upon the performance of a certain specified act. on OFT approval, would have entitled en·ti·tle tr.v. en·ti·tled, en·ti·tling, en·ti·tles 1. To give a name or title to. 2. To furnish with a right or claim to something: NTL to substantial discounts on the wholesale rates for Sky's channels in return for a commitment to increase its distribution of the channels. Sky has formally responded to the OFT's Rule 14 notice of December 17, 2001. This was Sky's first opportunity to put its case to the OFT. Sky will continue to defend itself robustly against the OFT's allegations. On April 16, 2002, NTL announced that it had reached an agreement in principle on its recapitalization Recapitalization Restructuring a company's debt and equity mixture often with the aim of making a company's capital structure more stable. Notes: Companies often want to diversify their debt-to-equity ratio to improve liquidity. and some holding companies in the NTL Group have since filed for Chapter 11 protection in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. . Sky has received assurances from NTL that there will be no impact on NTL's operations or on the trading relationship between Sky and NTL. On March 27, 2002, ITV Digital PLC ("ITV Digital") was placed into administration and on April 30, 2002, the joint administrators of ITV Digital announced their decision to close the pay television operation of ITV Digital. In the nine months to March 31, 2002, the supply of Sky channels to ITV Digital made a material contribution to Sky's operating profit. Sky continues to explore opportunities to ensure the continued availability of its channels on the DTT platform.
Appendix 1
Subscribers to Sky Channels
Prior Year
Q3 2000/01 Q1 2001/02 Q2 2001/02 Q3 2001/02
as at 3/31/01 as at 9/30/01 as at 12/31/01 as at 3/31/02
DTH(1,2)
Digital 5,061,000 5,498,000 5,716,000 5,887,000
Analogue 242,000 - - -
Total DTH 5,303,000 5,498,000 5,716,000 5,887,000
Cable - UK 2,903,000 2,914,000 3,676,000 3,601,000
Cable - Ireland 631,000 602,000 613,000 610,000
DTT(3) 1,054,000 1,178,000 1,234,000 -
Total 9,891,000 10,192,000 11,239,000 10,098,000
DTH Churn rate
for year to date
(annualized) 9.9% 10.4%(4) 10.4%(4) 10.5%(4)
1: Includes DTH subscribers in Ireland (232,000 as at March 31, 2002).
2: DTH subscribers includes only primary subscriptions to Sky (no
additional units are counted for Sky+ or Extra Digibox
subscriptions).
3: Includes all DTT subscribers, excluding promotional and
non-activated subscribers, as disclosed in ITV Digital press
releases. Since the announcement on March 27, 2002 that ITV Digital
was in administration, no subscriber numbers have been reported for
DTT. On April 30, 2002, the joint administrators of ITV Digital
announced their decision to close the pay television operation of
ITV Digital and, with effect from that date, these subscribers have
ceased to receive any Sky channels.
4: Excludes analogue churn up to September 27, 2001 and the effect of
the termination of the analogue service on September 27, 2001.
Consolidated Profit and Loss Account for the nine months ended
March 31, 2002
----------------------------------------------------------------------
Before 2001/2002
goodwill Goodwill Nine Months Before
and and ended goodwill and
exceptional exceptional March 31, exceptional
items items 2002 Total items
$m(a) $m(a) $m(a) (pound)m
Notes (unaudited) (unaudited) (unaudited) (unaudited)
----------------------------------------------------------------------
Turnover: Group and share
of joint ventures'
turnover 3,055.9 - 3,055.9 2,147.2
Less: share
of joint ventures'
turnover (169.4) - (169.4) (119.0)
Group turnover 1 2,886.5 - 2,886.5 2,028.2
----------------------------------------------------------------------
Operating
expenses, net 2 (2,702.5) (158.4) (2,860.9) (1,898.9)
----------------------------------------------------------------------
EBITDA 269.8 (31.7) 238.1 189.6
Depreciation (85.8) - (85.8) (60.3)
Amortization - (126.7) (126.7) -
----------------------------------------------------------------------
Operating profit
(loss) 184.0 (158.4) 25.6 129.3
----------------------------------------------------------------------
Share of operating
results of joint
ventures 3 (104.6) - (104.6) (73.5)
Joint ventures'
goodwill amortization,
net (b) - (1,522.7) (1,522.7) -
Profit on sale of fixed
asset investment - 3.3 3.3 -
Share of joint venture's
loss on sale of fixed
asset investment - - - -
Amounts written off
fixed asset investments - (85.4) (85.4) -
Release of provision for
loss on disposal of
subsidiary - 14.2 14.2 -
Profit (loss) on ordinary
activities before interest
and taxation 79.4 (1,749.0) (1,669.6) 55.8
----------------------------------------------------------------------
Interest receivable and
similar income 14.4 - 14.4 10.1
Interest payable and
similar charges (164.8) - (164.8) (115.8)
Loss on ordinary
activities
before taxation (71.0) (1,749.0) (1,820.0) (49.9)
----------------------------------------------------------------------
Taxation charge (23.6) (126.5) (150.1) (16.6)
Loss on ordinary
activities
after taxation (94.6) (1,875.5) (1,970.1) (66.5)
----------------------------------------------------------------------
Equity dividends - paid and
proposed -
Retained loss (1,970.1)
----------------------------------------------------------------------
Loss per share - basic
and diluted (5.0c) (99.5c) (104.5c) (3.5p)
----------------------------------------------------------------------
2001/2002 Before
Goodwill Nine months goodwill
and ended and exceptional
exceptional March 31, items
items 2002 Total as restated(c)
(pound)m (pound)m (pound)m
(unaudited) (unaudited) (unaudited)
----------------------------------------------------------------------
Turnover:
Group and share of
joint ventures' turnover - 2,147.2 1,824.4
Less: share of joint
ventures' turnover - (119.0) (153.3)
Group turnover - 2,028.2 1,671.1
----------------------------------------------------------------------
Operating expenses,
net (111.3) (2,010.2) (1,573.9)
----------------------------------------------------------------------
EBITDA (22.3) 167.3 140.0
Depreciation - (60.3) (42.8)
Amortization (89.0) (89.0) -
----------------------------------------------------------------------
Operating profit (loss) (111.3) 18.0 97.2
----------------------------------------------------------------------
Share of operating
results of joint
ventures - (73.5) (175.0)
Joint ventures' goodwill
amortization, net (b) (1,069.9) (1,069.9) -
Profit on sale of fixed
asset investment 2.3 2.3 -
Share of joint venture's
loss on sale of fixed
asset investment - - -
Amounts written off fixed
asset investments (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 (1,228.9) (1,173.1) (77.8)
----------------------------------------------------------------------
Interest receivable and
similar income - 10.1 14.5
Interest payable and similar
charges - (115.8) (113.1)
Loss on ordinary activities
before taxation (1,228.9) (1,278.8) (176.4)
----------------------------------------------------------------------
Taxation charge (88.9) (105.5) (7.7)
Loss on ordinary
activities
after taxation (1,317.8) (1,384.3) (184.1)
----------------------------------------------------------------------
Equity dividends - paid and
proposed -
Retained loss (1,384.3)
----------------------------------------------------------------------
Loss per share - basic and
diluted (69.9p) (73.4p) (10.0p)
----------------------------------------------------------------------
2000/2001
Nine Months
Goodwill and ended
exceptional March 31,
items as 2002 Total
restated(c) as restated(c)
(pound)m (pound)m
(unaudited) (unaudited)
----------------------------------------------------------------------
Turnover:
Group and share of
joint ventures' turnover - 1,824.4
Less: share of joint
ventures' turnover - (153.3)
Group turnover - 1,671.1
----------------------------------------------------------------------
Operating expenses, net (27.6) (1,601.5)
----------------------------------------------------------------------
EBITDA - 140.0
Depreciation - (42.8)
Amortization (27.6) (27.6)
----------------------------------------------------------------------
Operating profit (loss) (27.6) 69.6
----------------------------------------------------------------------
Share of operating
results of joint ventures - (175.0)
Joint ventures' goodwill
amortization, net (b) (51.8) (51.8)
Profit on sale of fixed
asset investment - -
Share of joint venture's
loss on sale of fixed
asset investment (69.5) (69.5)
Amounts written off fixed
asset investments (40.0) (40.0)
Release of provision for
loss on disposal of
subsidiary - -
Profit (loss) on ordinary
activities before interest
and taxation (188.9) (266.7)
----------------------------------------------------------------------
Interest receivable and
similar income - 14.5
Interest payable and
similar charges - (113.1)
Loss on ordinary
activities
before taxation (188.9) (365.3)
----------------------------------------------------------------------
Taxation charge - (7.7)
Loss on ordinary
activities
after taxation (188.9) (373.0)
----------------------------------------------------------------------
Equity dividends - paid and
proposed -
Retained loss (373.0)
----------------------------------------------------------------------
Loss per share - basic and
diluted (10.2p) (20.2p)
----------------------------------------------------------------------
(a) Dollar equivalents are provided for reader convenience at the
March 31, 2002 exchange rate of (pound)1 = $1.4232
(b) Included within joint ventures' goodwill amortization of
(pound)1,069.9 million ($1,522.7 million) for the nine months ended
March 31, 2002 is (pound)984.9 million ($1,401.7 million) in respect
of an impairment of KirchPayTV goodwill as at December 31, 2001,
partly offset by a write-back of (pound)13.5 million ($19.2 million)
of KirchPayTV goodwill to offset the recognition of KirchPayTV losses
from January 1, 2002 to February 8, 2002.
(c) As restated, following the adoption of FRS 19, Deferred
taxation, at June 30, 2001
Consolidated Profit and Loss Account for the three months ended
March 31, 2002
----------------------------------------------------------------------
Before Three months
goodwill Goodwill ended Before
and and March 31, goodwill and
exceptional exceptional 2002 exceptional
items items Total items
$m(a) $m(a) $m(a) (pound)m(a)
(unaudited) (unaudited) (unaudited) (unaudited)
----------------------------------------------------------------------
Turnover: Group and
share of joint ventures'
turnover 1,043.9 - 1,043.9 733.5
Less: share of joint
ventures' turnover (36.8) - (36.8) (25.9)
Group turnover 1,007.1 - 1,007.1 707.6
----------------------------------------------------------------------
Operating expenses, net (922.8) (73.3) (996.1) (648.4)
----------------------------------------------------------------------
EBITDA 111.7 (31.7) 80.0 78.5
Depreciation (27.4) - (27.4) (19.3)
Amortization - (41.6) (41.6) -
----------------------------------------------------------------------
Operating profit (loss) 84.3 (73.3) 11.0 59.2
----------------------------------------------------------------------
Share of operating results
of joint ventures (19.5) - (19.5) (13.7)
Joint ventures' goodwill
amortization - 19.2 19.2 -
Amounts written off fixed
asset investments - - - -
Profit (loss) on ordinary
activities before interest
and taxation 64.8 (54.1) 10.7 45.5
----------------------------------------------------------------------
Interest receivable and
similar income 2.2 - 2.2 1.6
Interest payable and
similar charges (50.5) - (50.5) (35.5)
Profit (loss) on ordinary
activities
before taxation 16.5 (54.1) (37.6) 11.6
----------------------------------------------------------------------
Taxation (charge) credit (15.8) 9.6 (6.2) (11.1)
Profit (loss) on ordinary
activities
after taxation 0.7 (44.5) (43.8) 0.5
----------------------------------------------------------------------
Equity dividends - paid
and proposed -
Retained loss (43.8)
----------------------------------------------------------------------
Earnings (loss) per share
- basic and
diluted 0.0c (2.3c) (2.3c) 0.0p
----------------------------------------------------------------------
Three months Before Goodwill
Goodwill ended goodwill and and
and March 31, exceptional exceptional
exceptional 2002 items items
items Total as restated as restated
(pound)m (pound)m (pound)m (pound)m
(unaudited) (unaudited) (unaudited) (unaudited)
----------------------------------------------------------------------
Turnover: Group and
share of joint ventures'
turnover - 733.5 636.4 -
Less: share of joint
ventures' turnover - (25.9) (51.3) -
Group turnover - 707.6 585.1 -
----------------------------------------------------------------------
Operating expenses,
net (51.5) (699.9) (538.5) (9.7)
----------------------------------------------------------------------
EBITDA (22.3) 56.2 62.3 -
Depreciation - (19.3) (15.7) -
Amortization (29.2) (29.2) - (9.7)
----------------------------------------------------------------------
Operating profit (loss) (51.5) 7.7 46.6 (9.7)
----------------------------------------------------------------------
Share of operating results
of joint ventures - (13.7) (76.4) -
Joint ventures' goodwill
amortization 13.5 13.5 - (15.6)
Amounts written off fixed
asset investments - - - (15.5)
Profit (loss) on ordinary
activities before interest
and taxation (38.0) 7.5 (29.8) (40.8)
---------------------------------------------------------------------
Interest receivable and
similar income - 1.6 4.5 -
Interest payable and
similar charges - (35.5) (39.0) -
Profit (loss) on ordinary
activities
before taxation (38.0) (26.4) (64.3) (40.8)
---------------------------------------------------------------------
Taxation (charge) credit 6.7 (4.4) (6.0) -
Profit (loss) on ordinary
activities after
taxation (31.3) (30.8) (70.3) (40.8)
---------------------------------------------------------------------
Equity dividends - paid
and proposed -
Retained loss (30.8)
---------------------------------------------------------------------
Earnings (loss) per share
- basic and
diluted (1.6p) (1.6p) (3.8p) (2.2p)
---------------------------------------------------------------------
Three Months
ended
March 31,
2001
Total
as restated
(pound)m
(unaudited)
----------------------------------------------------------------------
Turnover: Group and
share of joint ventures'
turnover 636.4
Less: share of joint
ventures' turnover (51.3)
Group turnover 585.1
----------------------------------------------------------------------
Operating expenses, net (548.2)
----------------------------------------------------------------------
EBITDA 62.3
Depreciation (15.7)
Amortization (9.7)
----------------------------------------------------------------------
Operating profit (loss) 36.9
----------------------------------------------------------------------
Share of operating results
of joint ventures (76.4)
Joint ventures' goodwill
amortization (15.6)
Amounts written off fixed
asset investments (15.5)
Profit (loss) on ordinary
activities before interest
and taxation (70.6)
----------------------------------------------------------------------
Interest receivable and
similar income 4.5
Interest payable and
similar charges (39.0)
Profit (loss) on ordinary
activities
before taxation (105.1)
----------------------------------------------------------------------
Taxation (charge) credit (6.0)
Profit (loss) on ordinary
activities after taxation (111.1)
----------------------------------------------------------------------
Equity dividends - paid
and proposed -
Retained loss (111.1)
----------------------------------------------------------------------
Earnings (loss) per share
- basic and diluted (6.0p)
----------------------------------------------------------------------
(a) Dollar equivalents are provided for reader convenience at the
March 31, 2002 exchange rate of (pound)1 = $1.4232
Notes:
1. Turnover
The Group's turnover, whilst deriving from one class of business,
has been analyzed as follows:
2001/2002 2000/2001
Nine months Nine months
ended ended
March 31 March 31
(pound)m (pound)m
(unaudited) (unaudited)
Direct-To-Home subscribers 1,400.1 1,114.1
Cable and DTT subscribers 221.1 219.5
Advertising 178.2 200.1
Interactive(a) 136.3 60.2
Other 92.5 77.2
2,028.2 1,671.1
----------------------------------------------------------------------
(a) Interactive income includes income from gaming, online
advertising, internet, e-commerce, interconnect, text services and Sky
Interactive set-top box subsidy recovery.
2. Operating expenses, net
2001/2002
Before Nine months Before
goodwill and Goodwill and ended goodwill and
exceptional exceptional March 31 exceptional
items items Total items
(pound)m (pound)m (pound)m (pound)m
(unaudited) (unaudited) (unaudited) (unaudited)
Programming (a) 1,045.9 - 1,045.9 831.0
Transmission
and related
functions (a) 110.3 - 110.3 87.7
Marketing 307.6 - 307.6 290.4
Subscriber
management 217.3 - 217.3 182.1
Administration 152.1 111.3 263.4 129.2
Gaming 65.7 - 65.7 53.5
1,898.9 111.3 2,010.2 1,573.9
2000/2001
Nine months
Goodwill and ended
exceptional March 31
items Total
(pound)m (pound)m
(unaudited) (unaudited)
Programming (a) - 831.0
Transmission
and related
functions (a) - 87.7
Marketing - 290.4
Subscriber
management - 182.1
Administration 27.6 156.8
Gaming - 53.5
27.6 1,601.5
----------------------------------------------------------------------
(a) The amounts shown are net of (pound)9.3 million (2000/2001: nine
months ended March 31 (pound)30.5 million) receivable from the
disposal of programming rights not acquired for use by the Group, and
(pound)17.8 million (2000/2001 nine months ended March 31 (pound)43.8
million) in respect of the provision to third party broadcasters of
spare transponder capacity.
Included within goodwill and exceptional items for the nine months
ended March 31, 2002 is (pound)89.0 million in respect of goodwill
amortization and (pound)22.3 million in respect of an exceptional
operating provision 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
This relates to the Group's equity share of the operating results
of the Group's joint ventures.
2001/2002 2000/2001
Nine months Nine months
ended ended
March 31 March 31
(pound)m (pound)m
(unaudited) (unaudited)
KirchPayTV GmbH & Co KGaA ("KirchPayTV") 70.0 85.9
British Interactive Broadcasting ("BiB") - 86.4
Programming joint ventures, net 3.5 2.7
73.5 175.0
----------------------------------------------------------------------
KirchPayTV On February 8, 2002, BSkyB announced that it had written down the carrying value of its investment in KirchPayTV to nil. The Group considers that, by February 8, 2002, the relationship between BSkyB and KirchPayTV had irrevocably changed and that the Group has not exercised significant influence (as defined by UK Accounting Standards) since that date. Based on the above, the Group believes that from February 8, 2002 it was no longer appropriate to account for its interest in KirchPayTV as a joint venture, and has therefore ceased accounting for KirchPayTV's losses using the gross equity method from that date. The Group has no intention of providing any future funding to KirchPayTV and the Group, on a consolidated basis, continues to have no financial commitments, outstanding financial liabilities or contingent liabilities in respect of KirchPayTV. As a result, an amount has been released from the provision against the carrying value of the investment made at December 31, 2001 matching BSkyB's share of KirchPayTV's losses for the period from January 1, 2002 to February 8, 2002. On May 8, 2002, KirchPayTV filed for insolvency due to illiquidity and over-indebtedness. KirchPayTV management informed the Group that Taurus Holding, the majority shareholder of KirchPayTV, was unable to continue to make funding support available to KirchPayTV and none of the other existing shareholders, banks or new investors were willing to provide funding to KirchPayTV to avoid an insolvency filing. 3. Share of operating results of joint ventures (continued) KirchPayTV (continued) The Group continues to monitor the situation carefully insofar as it relates to its investment in KirchPayTV and its put option to Taurus Holding. The Group will seek to utilize its put option in BSkyB's shareholders' best interests. However, if the current liquidity issues of Taurus Holding are not adequately resolved, the Group believes that it is unlikely to receive a significant amount, if any amount, in the event of the Group exercising the put option. BiB The Group recognized 32.5% of the results of BiB up until November November: see month. 2000. From this date, to May 9, 2001, 100% of BiB's losses were recognized due to the agreement dated July July: see month. 17, 2000, under which the Group agreed to provide 100% of BiB's funding after existing funding had been utilized. From May 9, 2001, the Group fully consolidated BiB as a subsidiary. |
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