British Sky Broadcasting Group plc; Results For the Six Months Ended December 31, 2002; Sky Reports 126% Growth in Operating Profit.Business Editors LONDON--(BUSINESS WIRE)--Feb. 14, 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 six months ended December December: see month. 31, 2002. - Net DTH subscriber growth in the quarter of 244,000 to 6.6 million - Year to date churn falls to 9.4% - DTH revenue increases by 23% to (pounds) 1,112 million ($1,707 million)(1) - Advertising revenue increases by 13% to (pounds) 133 million ($204 million) - Operating profit before goodwill increases 126% to (pounds) 158 million ($243 million) - Operating cash inflow of (pounds) 255 million ($392 million) - Profit before tax and goodwill of (pounds) 80 million ($123 million) Tony Ball, Chief Executive of British Sky Broadcasting Group plc, said: "Double digit Noun 1. double digit - a two-digit integer; from 10 to 99 integer, whole number - any of the natural numbers (positive or negative) or zero; "an integer is a number that is not a fraction" revenue growth combined with tight control of costs has resulted in strong margin expansion driving significant and rapidly growing free cash flow. We are well on track to hit all of our targets and we look forward to the rest of the year with confidence." (1) Dollar conversions provided for convenience of US readers only 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 There will be a presentation to analysts and investors at 9:30 a.m. (GMT (Greenwich Mean Time) See UTC. GMT - Universal Time 1 ) today at the King Edward King Edward has been the name of several monarchs in English history:
To the east is the "Island" site of Oriel College, one of the colleges of Oxford University. , London London, city, Canada London, city (1991 pop. 303,165), SE Ont., Canada, on the Thames River. The site was chosen in 1792 by Governor Simcoe to be the capital of Upper Canada, but York was made capital instead. London was settled in 1826. , EC1A 7AN and to the press at 11:00 a.m. (GMT) at the same venue venue In law, the place or county in which the events giving rise to a legal action take place and from which a jury may be drawn to try the case. Venue statutes usually specify that a trial must take place in the district that has jurisdiction over the matter. . A webcast of the presentation to analysts, together with this press release will be available from 2:00 p.m. (GMT) today on Sky's corporate website (www.sky.com/corporate). There will be a 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. OVERVIEW Sky continues to demonstrate significant operational gearing within its business model and to deliver accelerating profit growth. Total revenues grew by 14% on the comparable period, to (pounds) 1,511 million ($2,320 million), whilst operating expenditure rose by just 8% on the comparable period to (pounds) 1,353 million ($2,077 million), generating a net operating margin Net operating margin The ratio of net operating income to net sales. of 10.5%, up more than five percentage points on the comparable period. 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 for the period increased to (pounds) 158 million ($243 million), an increase of 126% on the comparable period and the highest first half operating profit since the launch of Sky digital in October October: see month. 1998. 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 increased by 82% from (pounds) 111 million ($170 million) to (pounds) 203 million ($312 million). Sky continues to reduce net debt at each balance sheet date and at December 31, 2002, net debt had fallen to (pounds) 1,386 million ($2,128 million), the lowest level since June June: see month. 2000. OPERATIONAL REVIEW At December 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 6,562,000, representing a net increase of 244,000 subscribers in the three months to December 31, 2002 (the quarter). This sustained strong growth puts Sky comfortably on track to achieve its target of 7 million DTH subscribers by the end of the calendar year 2003. At December 31, 2002, the percentage of subscribers taking the top tier Sky World package was 55%. The number of subscribers to the Extra Digibox A digibox can refer to either:
Total subscribers in the UK and Ireland to one or more of Sky's channels increased by 196,000 to 10.5 million in the quarter, with Sky's own 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. growth being partially offset by another quarter of decline in the number of households subscribing subscribing - subscribe to a television service via cable. 100% of UK digital cable subscribers now receive at least one Sky channel which means that with every digital terrestrial Dealing with the earth. See terrestrial link. home also receiving Sky channels, the Sky brand and advertising proposition reaches every digital home in the UK. 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 9.4% in the period. This represents the lowest level of total churn recorded since the launch of Sky digital and a full percentage point reduction on the six months ended December 31, 2001 (the comparable period). The reduction in churn reflects the continued high level of customer satisfaction and ongoing improvements in customer service as operational efficiencies from Sky's investment in new call center systems are realized. The quarterly annualized 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 (pounds) 351 ($539), an increase of 6% over the three months ended December 31, 2001 and (pounds) 3 ($5) higher than ARPU for the quarter to September September: see month. 30, 2002. The changes in UK retail pricing, which took effect from January January: see month. 1, 2003, will begin to be reflected in ARPU from the third quarter of this financial year. Programming The main terrestrial channels, 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, continued their audience decline in 2002 according to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. the year-end year-end also year·end n. The end of a year. adj. Occurring or done at the end of the year: a year-end audit. Noun 1. viewing figures from BARB. Multi-channel See multichannel. viewing continues to grow year on year and for the first time ever the multi-channel share of viewing exceeded ITV's share in the Christmas Christmas [Christ's Mass], in the Christian calendar, feast of the nativity of Jesus, celebrated in Roman Catholic and Protestant Churches on Dec. 25. In liturgical importance it ranks after Easter, Pentecost, and Epiphany (Jan. 6). week of December 2002. The number of programs on digital channels with audiences of over one million individuals doubled to 160 in 2002 compared to 2001, with programs on Sky channels, such as The Simpsons, Enterprise, Buffy buffy (buf´e) of the color buff; light yellowish pink to yellow, including orange-yellow to yellow-brown. , Dinotopia, FA Cup, Worthington Cup Worthington Cup may refer to:
Sky One maintains its leading position in multi-channel homes increasing its share of viewing to 3.7% for the calendar year 2002 and Sky One Mix, a multiplex See multiplexing. version, was successfully launched in December to offer our subscribers an alternative chance to see their favorite shows. Coming up this month is the return of the hit series 'Close Up' featuring Rio Ferdinand Rio Gavin Ferdinand (born November 7, 1978 in Peckham, London) is an English footballer of mixed St Lucian and Anglo-Irish descent. He plays at centre-back for Manchester United in the FA Premier League and at the international level for the England national football team. , Teddy Sheringham Edward Paul "Teddy" Sheringham MBE (born April 2, 1966 in Highams Park, London) is a veteran English professional footballer currently playing for Colchester United. Sheringham plays as a striker, and has had an exceptionally successful career at club level, winning almost every and Freddie Ljungberg Ljungberg is a common Swedish family name. Famous persons with this name include:
Sky Sports' popularity continues to grow with audiences increasing for most major sports. Worthington Cup Football has made a record-breaking Adj. 1. record-breaking - surpassing any previously established record; "a record-breaking high jump"; "record-breaking crowds" best - (superlative of `good') having the most positive qualities; "the best film of the year"; "the best solution"; "the best time for return to Sky this season achieving average audiences of over one million 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. , up 35% on the last season broadcast on Sky, and 14% higher than the best ever season. During the quarter, Sky Sports broadcast all three of England's autumn Autumn Autumnus personification; portrayed as mature and manly. [Rom. Myth.: LLEI, I: 322] Bacchus god of this season. [Rom. Myth.: Hall, 130] Carpo goddess of autumn and corn season. [Gk. Myth. Rugby Union rugby union Noun a form of rugby played between teams of 15 players internationals. The back-to-back back-to-back adj. Consecutive; successive: back-to-back performances; back-to-back home runs. Adj. 1. victories over New Zealand New Zealand (zē`lənd), island country (2005 est. pop. 4,035,000), 104,454 sq mi (270,534 sq km), in the S Pacific Ocean, over 1,000 mi (1,600 km) SE of Australia. The capital is Wellington; the largest city and leading port is Auckland. , 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. and South Africa South Africa, Afrikaans Suid-Afrika, officially Republic of South Africa, republic (2005 est. pop. 44,344,000), 471,442 sq mi (1,221,037 sq km), S Africa. , offered with 8-screen interactivity, saw in-home in-home adj. Operating in or provided at the home of the customer or patient: in-home shopping; an in-home nursing program. audiences up 25% on last year's games. The Rugby Super League Rugby Super League may refer to several rugby football competitions: rugby league
The Cricket World Cup commenced this month and Sky Sports is showing all 54 matches exclusively live. Viewers will be able to select from a menu of simultaneous matches using Sky Sports Active Sky Sports Active is a term used by British TV channel, Sky Sports, to describe their interactive sports service. It was launched in April 1999, on Sky Sports 1. Presented by Richard Keys, the first football game that was interactive was Arsenal vs. technology. This month Sky Box Office is also showing Mike Tyson's comeback Comeback Australian breed of wool sheep, bred by crossing Merino with Corriedale, Polwarth or Zenith sheep; wool is 21 to 25 microns. It is a registered breed, but the term is more commonly used in the sense of a type of sheep produced by crossbreeding a crossbred Merino back to Merino. fight since his defeat by Lennox Lewis Lennox Claudius Lewis CBE (born September 2 1965 in West Ham, London, England) is a retired professional boxer who represented Canada in the Olympics and fought under the British flag as a professional. He is a former undisputed lineal heavyweight champion. . Sky remains the home of the most comprehensive movie service in the UK. Over the next few months, Sky Movies and Sky Box Office will be broadcasting some of the most successful movies in history, including Harry Potter A potter is someone who makes pottery. Potter may also refer to: People
Philosopher’s Stone substance supposed to convert base metal to gold. [Medieval Legend: Brewer Dictionary, 829] See : Unattainability and The Lord of the Rings: The Fellowship fellowship Graduate education A post-residency training period of 1–2 yrs in a subspecialty–eg, hand surgery, which allows a specialized physician to develop a particular expertise that may have a related subspecialty board; fellowship time is often of the Ring. Sky Active continues to grow its offering to subscribers. Following the success of games like Tetris Tetris (Russian: Тетрис) is a , released on a large spectrum of platforms. Alexey Pajitnov originally designed and programmed the game in June 1985[1] , Battleships The list of battleships includes all battleships since 1859, listed alphabetically. The list also contains battlecruisers which share most of the characteristics of a battleship or have otherwise been referred to as battleships. and Space Invaders Space Invaders Noun Trademark a video game in which players try to defend themselves against attacking enemy spacecraft , Sky Active added the popular Tomb Raider Raider An individual or organization who tries to take over a company by initiating a hostile takeover bid. Notes: Raiders look for companies with undervalued assets and then attempt the hostile takeover by purchasing enough shares to have a controlling interest. game to Sky Gamestar GameStar is a monthly released PC computer game magazine, published by the IDG Entertainment Verlag in Germany. At the moment (2007) it has an average monthly circulation of 250.000 copies and is therefore the best sold PC computer game magazine in Europe. in December and Sky also launched the first ever dedicated digital TV games controller, Sky Gamepad. FINANCIAL REVIEW Revenue Total revenues increased by 14% on the comparable period to (pounds) 1,511 million ($2,320 million), driven by strong increases in DTH and advertising revenues, partially offset by declining wholesale revenues. DTH revenues increased by 23% to (pounds) 1,112 million ($1,707 million) principally as a result of a 14% increase in the average number of DTH subscribers. Core ARPU increased by 6% to (pounds) 336 ($516). The Group's advertising revenue increased by 13% on the comparable period to (pounds) 133 million ($204 million). With the majority of the annual negotiations complete for calendar 2003, the Group remains confident of delivering double digit year-on-year growth in advertising revenues for the financial year. As expected, wholesale revenues continued to decline, reducing by 34% on the comparable period to (pounds) 98 million ($150 million). Excluding the one-off (1) One at a time. CD-ROM recorders (CD-R drives) are commonly called one-off machines because they write one CD-ROM at a time. (2) Only once. Software that is written to solve a specific problem only one time is sometimes called a one-off. effect of the closure of ITV Digital, the decline in wholesale revenues was 16%. This reduction is the direct consequence of both the loss of 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 and the lower penetration The successful unauthorized breach of a security perimeter. See penetration test. of premium channels amongst remaining cable subscribers. The total number of cable subscribers to Sky channels has declined by over 300,000 in the last 12 months, despite the higher availability of Sky channels in cable homes. Over the same period, the penetration of premium channels in cable homes has also continued to fall, further affecting wholesale revenues. Sky is in ongoing discussions with the cable companies in order to improve the penetration of Sky premium channels amongst cable subscribers. Total interactive revenues including both gross betting revenues and Sky Active revenues, were flat at (pounds) 91 million ($140 million), though this conceals a significant improvement in mix. Sky Active revenues continue to grow and increased by 15% on the comparable period to (pounds) 48 million ($74 million). This increase was mainly driven by interactive advertising, the increased usage of games and revenues from third party channels using interactive applications. In particular, the usage of interactive advertising continues to rise with over 240 campaigns shown to date and Sky Gamestar has increased in popularity with over 7.7 million paid-for games during the period. In contrast to the growth of Sky Active revenues, gross betting revenue reduced to (pounds) 43 million ($66 million), reflecting Sky's strategy to discourage low margin telephone-only customers and focus on the much higher margin interactive television (iTV) betting business. iTV based bets grew strongly in the period with the total volume of bets placed via the set-top box up 160% and revenue from iTV betting up 104% on the comparable period. iTV remains the fastest growing segment of betting revenues and now accounts for the majority of bets placed by volume. Importantly, the iTV betting margin (calculated by subtracting iTV betting costs, which includes payouts, tax and horse racing horse racing, trials of speed involving two or more horses. It includes races among harnessed horses with one of two particular gaits, among saddled Thoroughbreds (or, less frequently, quarterhorses) on a flat track, or among saddled horses over a turf course with levy To assess; raise; execute; exact; tax; collect; gather; take up; seize. Thus, to levy a tax; to levy a Nuisance; to levy a fine; to levy war; to levy an execution, i.e., to levy or collect a sum of money on an execution. A seizure. , from gross iTV betting revenues) is high at over 11%. The result of the growth in Sky Active revenues and improvement in betting margins was that interactive ARPU (quarterly annualized) increased by 16% to (pounds) 15 ($23). Programming costs Programming costs for the period increased by (pounds) 87 million ($134 million) to (pounds) 744 million ($1,142 million). Sports costs increased by (pounds) 40 million ($61 million) to (pounds) 313 million ($481 million) as a result of contractual increases, the timing 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. , which is a bi-annual event, and the Nationwide Football League which returned to Sky this season. The increase in Third Party Channel costs of (pounds) 29 million ($45 million) to (pounds) 173 million ($266 million) principally reflects the 14% increase in the average number of subscribers on the comparable period. Movie costs increased by (pounds) 21 million ($32 million) to (pounds) 201 million ($309 million) mainly as a result of the increased number of "hit" movies shown. Other operating costs operating costs npl → gastos mpl operacionales Despite the strong growth in subscribers, marketing costs decreased by (pounds) 4 million ($6 million) to (pounds) 216 million ($332 million). This was principally the result of lower set-top box costs, the increased use of direct sales channels and Internet Internet Publicly accessible computer network connecting many smaller networks from around the world. It grew out of a U.S. Defense Department program called ARPANET (Advanced Research Projects Agency Network), established in 1969 with connections between computers at the ordering, offset by an increase in above-the-line expenditure. 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)]. ) has fallen by (pounds) 25 ($38) from (pounds) 235 ($361) for the comparable period to (pounds) 210 ($322) for the period, achieving the target set for the end of the current financial year six months early. As set-top box supply arrangements are generally negotiated on an annual basis, Sky expects modest SAC savings for the remainder of the financial year, mainly as a result of the ongoing trend towards direct subscriber acquisition. Sky remains confident that SAC will fall below (pounds) 200 ($307) in the financial year to June 2004. Subscriber management costs increased by (pounds) 15 million ($23 million) to (pounds) 161 million ($247 million). Subscriber management costs comprise To embrace, cover, or include; to confine within; to consist of. In the law governing patents—grants of an exclusive right or privilege to make, use, or sell an invention or product for a term of years—the term comprise two main activities: 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 associated with managing the existing subscriber base; and supply chain costs relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc systems and infrastructure and the hardware costs of new products purchased by subscribers such as Sky+ and Extra Digiboxes. CRM costs per subscriber have fallen by 14%, leading to an overall reduction of 2% over the prior year to (pounds) 76 million ($116 million), as a result of call center efficiencies and lower call volumes. Supply chain costs increased by 24% over the comparable period to (pounds) 85 million ($131 million), as a result of installing a higher number of new subscribers and the hardware costs of new products. The corresponding revenue associated with the sale of hardware products is included within other revenues. Goodwill amortization included within operating profit increased by (pounds) 4 million ($6 million) on the comparable period to (pounds) 64 million ($98 million). The increase was mainly due to a (pounds) 5 million ($8 million) provision against goodwill which originally arose on the acquisition of OPTA OPTA Onafhankelijke Post en Telecommunicatie Autoriteit OPTA Optimum Performance Theoretically Attainable OPTA Osteopetrosis OPTA Orthotic & Prosthetic Technological Association OPTA Open Packet Telephony Architecture (Cisco) Index Limited (OPTA). The provision has reduced 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 this goodwill to nil. The provision has been made as a result of the Group's announcement that it would close OPTA in May 2003 if sufficient sponsorship revenue has not been generated by that date. Joint ventures The Group's share of the operating profits of joint ventures increased to (pounds) 2 million ($3 million) in the period, an increase of (pounds) 62 million ($95 million) over the comparable period, reflecting the cessation cessation Vox populi The stopping of a thing. See Smoking cessation. of equity accounting for the Group's share of losses incurred by KirchPayTV from February February: see month. 8, 2002. The Group has made a provision against some of its minority equity investments, reflecting the accounting treatment of these investments required by UK GAAP UK GAAP United Kingdom Generally Accepted Accounting Principles . This has led to a net non-cash exceptional charge of (pounds) 19 million ($29 million), which is accounted for below operating profit. Taxation The tax charge for the period includes a current tax charge of (pounds) 27 million ($41 million) and a deferred tax charge of (pounds) 4 million ($6 million) due to the Group moving into a profitable position (based upon an effective tax rate of 31%). This was offset by a (pounds) 33 million ($50 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 period. After tax on exceptional items ((pounds) 2 million ($3 million)) and Sky's share of joint ventures' tax ((pounds) 1 million ($2 million)), the charge for the period was (pounds) 1 million ($2 million). At December 31, 2002, the Group had (pounds) 20 million ($31 million) of Advanced Corporation Tax (ACT) expected to be recoverable in less than one year (principally to be accounted for in 2002/3 financial year) and (pounds) 58 million ($89 million) of ACT recoverable in more than one year. Earnings The Group has marked its return to profitability by delivering a profit after tax of (pounds) 16 million ($25 million) for the period, resulting in earnings per share of 0.8 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, (1.2 cents) compared to a loss per share of 71.8 pence (110.2 cents) for the comparable period. This is the first time the Group has delivered positive earnings per share since the launch of the free set top box offer in May 1999, which resulted in a period of heavy investment in subscriber acquisition. Cashflow and interest 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 (pounds)255 million ($392 million) in the period. This represented the conversion of 161% of operating profit before goodwill to cash inflow. Sky's net debt has fallen by (pounds)142 million ($218 million) since June 30, 2002. At December 31, 2002 the ratio of net debt to annualized EBITDA was 3.4, its lowest level since 1999. Interest cover (the ratio of EBITDA to net interest payable) was 3.3. Sky expects these ratios to continue to improve to levels consistent with an investment grade credit rating. Corporate On November November: see month. 11, 2002, BSkyB BSkyB British Sky Broadcasting issued a total of 43.2 million shares to BT, HSBC HSBC Hongkong and Shanghai Banking Corporation HSBC Humane Society of Broward County (Florida) HSBC Humane Society of Bay County (Bay County, Michigan) and Matsushita as final consideration for the acquisition of their interests in British Interactive Broadcasting Holdings Limited. Following this transaction none of the Group's shares are the subject of any lock up or similar arrangement. As measured by the FTSE FTSE A company that specializes in index calculation. Although not part of a stock exchange, co-owners include the London Stock Exchange and the Financial Times. Notes: The FTSE is similar to Standard & Poor's in the United States. Indices Committee, the Group's free float Free float An exchange rate system characterized by the absence of government intervention. Also known as clean float. is currently 64.6%, with a single stake of 35.4% held by BSkyB Holdco. Inc. accounting for the balance. The Group welcomed the announcement by 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. on December 17, 2002 that it had not found BSkyB in breach of competition law. The investigation covered the period between March 2000 and the end of 2001. On February 4, 2003, Standard & Poor's Ratings Services Ratings Service A company, such as Moody's or Standard & Poor's, that rates various debt and preferred stock issues for safety of payment of principal, interest, or dividends. revised its outlook on its long-term Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. corporate credit rating on BSkyB from stable to positive and affirmed af·firm v. af·firmed, af·firm·ing, af·firms v.tr. 1. To declare positively or firmly; maintain to be true. 2. To support or uphold the validity of; confirm. v.intr. the Company's current 'BB+' rating. On February 13, 2003, the Board of BSkyB appointed ap·point tr.v. ap·point·ed, ap·point·ing, ap·points 1. To select or designate to fill an office or a position: appointed her the chief operating officer of the company. 2. three new Non-Executive Directors A non-executive director (NED, also NXD) or outside director is a member of the board of directors of a company who does not form part of the executive management team. He or she is not an employee of the company or affiliated with it in any other way. . Lord Wilson Wilson, city (1990 pop. 36,930), seat of Wilson co., E N.C., in a rich agricultural region; inc. 1849. It is a commercial and industrial center with a large tobacco market. Manufactures include textile goods (especially clothing), metal products, and processed foods. of Dinton Dinton is the name of more than one place. In the United Kingdom:
As a result of this appointment, the new Articles of Association approved by shareholders at the Company's Annual General Meeting in November 2002 have become effective. Furthermore, Leslie Leslie (Gaelic, derived from a surname meaning 'garden of hollies,'grey fortress, or'garden by the pool')[1] can refer to any of the following: Places in Scotland:
Chase Carey was a Harvard MBA and a college rugby player. , member of the Board of Directors of News Corporation and James Murdoch James Murdoch is the name of multiple people:
Refinancing Refinancing An extension and/or increase in amount of existing debt. Barclays Bank plc, Citigroup Citigroup U.S. holding company formed in 1998 from the merger of Citicorp (itself a holding company incorporated in 1967) and Travelers Group, Inc. The $70 billion merger included one of the largest U.S. investment banks, Salomon Smith Barney Inc. and Deutsche Bank Deutsche Bank AG (IPA: /'dɔɪ.tʃə/[1]) (ISIN: DE0005140008, NYSE: DB) (English: German Bank AG London have recently provided an underwritten commitment to the Group for a five year (pounds) 600 million ($921 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 to replace the Group's existing (pounds) 750 million ($1,151 million) facility, due to mature in June 2004. The existing (pounds) 300 million ($461 million) facility, currently undrawn un·draw tr.v. un·drew , un·drawn , un·draw·ing, un·draws To draw to one side, as a curtain. Adj. 1. undrawn - not represented in a drawing undelineated - not represented accurately or precisely , will be reduced simultaneously si·mul·ta·ne·ous adj. 1. Happening, existing, or done at the same time. See Synonyms at contemporary. 2. Mathematics to (pounds) 200 million ($307 million), and will remain in place to mature in June 2004 as currently documented. Total available facilities will therefore be (pounds) 800 million ($1,228 million) to June 2004 and (pounds) 600 million ($921 million) thereafter. The new facilities, combined with existing public market debt, will provide the Group with comfortable liquidity over the term of the facilities.
Appendix 1
Subscribers to Sky Channels
Prior
Year Opening
Q2 Q4 Q1 Q2
2001/02 2001/02 2002/03 2002/03
As at as at as at as at
12/31/01 06/30/02 09/30/02 12/31/02
DTH Digital(1),(2) 5,716,000 6,101,000 6,318,000 6,562,000
Cable - UK 3,676,000 3,486,000 3,405,000 3,355,000
Cable - Ireland 613,000 605,000 594,000 596,000
DTT(3) 1,218,000 - - -
Total 11,223,000 10,192,000 10,317,000 10,513,000
DTH Churn rate for year to
date (annualized) 10.4%(4) 10.5%(4) 9.6% 9.4%
Net DTH growth in quarter 218,000 214,000 217,000 244,000
(1): Includes DTH subscribers in Ireland (272,000 as at December 31,
2002).
(2): DTH subscribers includes only primary subscriptions to Sky (no
additional units are counted for Sky+ or Extra Digibox
subscriptions).
(3): 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
ceased to receive any Sky subscription 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 half year ended
December 31, 2002
----------------------------------------------------------------------
2002/2003
Half year 2002/2003
Before Half year
goodwill and Goodwill and 2002/2003
exceptional exceptional Half year
items items Total
$m(a) $m(a) $m(a)
Notes (unaudited) (unaudited)(unaudited)
----------------------------------------------------------------------
Turnover: Group and share
of joint ventures'
turnover 2,379.4 2,379.4
Less: share of joint
ventures' turnover (59.1) - (59.1)
Group turnover 2 2,320.3 - 2,320.3
----------------------------------------------------------------------
Operating expenses, net 3 (2,077.3) (97.8) (2,175.1)
----------------------------------------------------------------------
EBITDA 12 310.9 - 310.9
Depreciation (67.9) - (67.9)
Amortization 8 - (97.8) (97.8)
----------------------------------------------------------------------
Operating profit (loss) 243.0 (97.8) 145.2
----------------------------------------------------------------------
Share of operating
results of joint
ventures 4 2.6 - 2.6
Joint ventures' goodwill
amortization 9 - - -
Profit on sale of fixed
asset investment 9 - - -
Amounts written off fixed
asset investments, net 9 - (28.9) (28.9)
Release of provision for
loss on disposal of
subsidiary - - -
Profit (loss) on ordinary
activities before
interest and taxation 245.6 (126.7) 118.9
----------------------------------------------------------------------
Interest receivable and
similar income 3.1 - 3.1
Interest payable and
similar charges (96.5) - (96.5)
Profit (loss) on ordinary
activities before
taxation 152.2 (126.7) 25.5
----------------------------------------------------------------------
Tax credit (charge) on
profit (loss) on
ordinary activities 5 1.5 (2.3) (0.8)
Profit (loss) on ordinary
activities after
taxation 153.7 (129.0) 24.7
----------------------------------------------------------------------
Equity dividends - paid
and proposed 6 -
Retained profit (loss) 10 24.7
----------------------------------------------------------------------
Earnings (loss) per share
- basic 7 8.1c (6.9c) 1.2c
Earnings (loss) per share
- diluted 7 8.0c (6.8c) 1.2c
----------------------------------------------------------------------
----------------------------------------------------------------------
2002/2003
Half year 2002/2003
Before Half year
goodwill and Goodwill and 2002/2003
exceptional exceptional Half year
items items Total
(pounds)m (pounds)m (pounds)m
(unaudited) (unaudited)(unaudited)
----------------------------------------------------------------------
Turnover: Group and share
of joint ventures'
turnover 1,549.8 - 1,549.8
Less: share of joint
ventures' turnover (38.5) - (38.5)
Group turnover 1,511.3 - 1,511.3
----------------------------------------------------------------------
Operating expenses, net (1,353.0) (63.7) (1,416.7)
----------------------------------------------------------------------
EBITDA 202.5 - 202.5
Depreciation (44.2) - (44.2)
Amortization - (63.7) (63.7)
----------------------------------------------------------------------
Operating profit (loss) 158.3 (63.7) 94.6
----------------------------------------------------------------------
Share of operating
results of joint
ventures 1.7 - 1.7
Joint ventures' goodwill
amortization - - -
Profit on sale of fixed
asset investment - - -
Amounts written off fixed
asset investments, net - (18.8) (18.8)
Release of provision for
loss on disposal of
subsidiary - - -
Profit (loss) on ordinary
activities before
interest and taxation 160.0 (82.5) 77.5
----------------------------------------------------------------------
Interest receivable and
similar income 2.0 - 2.0
Interest payable and
similar charges (62.9) - (62.9)
Profit (loss) on ordinary
activities before
taxation 99.1 (82.5) 16.6
----------------------------------------------------------------------
Tax credit (charge) on
profit (loss) on
ordinary activities 1.0 (1.5) (0.5)
Profit (loss) on ordinary
activities after
taxation 100.1 (84.0) 16.1
----------------------------------------------------------------------
Equity dividends - paid
and proposed -
Retained profit (loss) 16.1
----------------------------------------------------------------------
Earnings (loss) per share
- basic 5.3p (4.5p) 0.8p
Earnings (loss) per share
- diluted 5.2p (4.4p) 0.8p
----------------------------------------------------------------------
----------------------------------------------------------------------
2001/2002
Half year 2001/2002
Before Half year
goodwill Goodwill
and and 2001/2002 2001/2002
exceptional exceptional Half year Full year
items items Total Total
(pounds)m (pounds)m (pounds)m (pounds)m
(unaudited) (unaudited) (unaudited) (audited)
----------------------------------------------------------------------
Turnover: Group and
share of joint
ventures' turnover 1,413.7 - 1,413.7 2,915.3
Less: share of
joint ventures'
turnover (93.1) - (93.1) (139.2)
Group turnover 1,320.6 - 1,320.6 2,776.1
----------------------------------------------------------------------
Operating expenses,
net (1,250.5) (59.8) (1,310.3) (2,721.1)
----------------------------------------------------------------------
EBITDA 111.1 - 111.1 254.5
Depreciation (41.0) - (41.0) (81.1)
Amortization - (59.8) (59.8) (118.4)
----------------------------------------------------------------------
Operating profit
(loss) 70.1 (59.8) 10.3 55.0
----------------------------------------------------------------------
Share of operating
results of joint
ventures (59.8) - (59.8) (76.7)
Joint ventures'
goodwill
amortization - (1,083.4) (1,083.4) (1,069.9)
Profit on sale of
fixed asset
investment - 2.3 2.3 2.3
Amounts written off
fixed asset
investments, net - (60.0) (60.0) (60.0)
Release of
provision for loss
on disposal of
subsidiary - 10.0 10.0 10.0
Profit (loss) on
ordinary
activities before
interest and
taxation 10.3 (1,190.9) (1,180.6) (1,139.3)
----------------------------------------------------------------------
Interest receivable
and similar income 8.5 - 8.5 11.1
Interest payable
and similar
charges (80.3) - (80.3) (148.0)
Profit (loss) on
ordinary
activities before
taxation (61.5) (1,190.9) (1,252.4) (1,276.2)
----------------------------------------------------------------------
Tax credit (charge)
on profit (loss)
on ordinary
activities (5.5) (95.6) (101.1) (106.4)
Profit (loss) on
ordinary
activities after
taxation (67.0) (1,286.5) (1,353.5) (1,382.6)
----------------------------------------------------------------------
Equity dividends -
paid and proposed - -
Retained profit
(loss) (1,353.5) (1,382.6)
----------------------------------------------------------------------
Earnings (loss) per
share - basic (3.6p) (68.2p) (71.8p) (73.3p)
Earnings (loss) per
share - diluted (3.6p) (68.2p) (71.8p) (73.3p)
----------------------------------------------------------------------
The accompanying notes are an integral part of this consolidated
Profit and Loss Account.
(a) Dollar equivalents are provided for reader convenience at the
December 31, 2002 exchange rate of (pounds)1 = $1.5353
Consolidated Profit and Loss Account for the three months ended
December 31, 2002
----------------------------------------------------------------------
Before
Before Three goodwill
goodwill Goodwill months and Goodwill
and and December except- and
except- except- 31, ional except-
ional ional 2002 items ional
items items Total (pounds)m items
$m(a) $m(a) $m (a) (pounds)m
(un- (un- (un- (un- (un-
audited) audited) audited) audited) audited)
----------------------------------------------------------------------
Turnover: Group and
share of joint
ventures' turnover 1,237.0 - 1,237.0 805.7 -
Less: share of joint
ventures' turnover (31.6) - (31.6) (20.6) -
Group turnover 1,205.4 - 1,205.4 785.1 -
----------------------------------------------------------------------
Operating expenses,
net (1,077.8) (52.8) (1,130.6) (702.0) (34.4)
----------------------------------------------------------------------
EBITDA 161.4 - 161.4 105.1 -
Depreciation (33.8) - (33.8) (22.0) -
Amortization - (52.8) (52.8) - (34.4)
----------------------------------------------------------------------
Operating profit
(loss) 127.6 (52.8) 74.8 83.1 (34.4)
----------------------------------------------------------------------
Share of operating
results of joint
ventures 4.0 - 4.0 2.6 -
Joint ventures'
goodwill
amortization - - - - -
Amounts written off
fixed asset
investments, net - (28.9) (28.9) - (18.8)
Profit (loss) on
ordinary activities
before interest and
taxation 131.6 (81.7) 49.9 85.7 (53.2)
----------------------------------------------------------------------
Interest receivable
and similar income 1.6 - 1.6 1.1 -
Interest payable and
similar charges (47.4) - (47.4) (30.9) -
Profit (loss) on
ordinary activities
before taxation 85.8 (81.7) 4.1 55.9 (53.2)
----------------------------------------------------------------------
Tax credit (charge)
on profit (loss) on
ordinary activities 22.8 (2.3) 20.5 14.8 (1.5)
Profit (loss) on
ordinary activities
after taxation 108.6 (84.0) 24.6 70.7 (54.7)
----------------------------------------------------------------------
Equity dividends -
paid and proposed -
Retained profit
(loss) 24.6
----------------------------------------------------------------------
Earnings (loss) per
share - basic 5.7c (4.5c) 1.2c 3.7p (2.9p)
Earnings (loss) per
share - diluted 5.5c (4.3c) 1.2c 3.6p (2.8p)
----------------------------------------------------------------------
----------------------------------------------------------------------
Three Three
months Before months
ended goodwill Goodwill ended
December and and December
31, except- except- 31,
2002 ional ional 2001
Total items items Total
(pounds)m (pounds)m (pounds)m (pounds)m
(un- (un- (un- (un-
audited) audited) audited) audited)
----------------------------------------------------------------------
Turnover: Group
and share of joint
ventures' turnover 805.7 725.5 - 725.5
Less: share of joint
ventures' turnover (20.6) (47.6) - (47.6)
Group turnover 785.1 677.9 - 677.9
----------------------------------------------------------------------
Operating expenses,
net (736.4) (652.4) (30.1) (682.5)
----------------------------------------------------------------------
EBITDA 105.1 46.6 - 46.6
Depreciation (22.0) (21.1) - (21.1)
Amortization (34.4) - (30.1) (30.1)
----------------------------------------------------------------------
Operating profit
(loss) 48.7 25.5 (30.1) (4.6)
----------------------------------------------------------------------
Share of operating
results of joint
ventures 2.6 (28.9) - (28.9)
Joint ventures'
goodwill
amortization - - (1,034.2) (1,034.2)
Amounts written off
fixed asset
investments, net (18.8) - (60.0) (60.0)
Profit (loss) on
ordinary activities
before interest and
taxation 32.5 (3.4) (1,124.3) (1,127.7)
----------------------------------------------------------------------
Interest receivable
and similar income 1.1 4.4 - 4.4
Interest payable and
similar charges (30.9) (39.9) - (39.9)
Profit (loss) on
ordinary activities
before taxation 2.7 (38.9) (1,124.3) (1,163.2)
----------------------------------------------------------------------
Tax credit (charge)
on profit (loss) on
ordinary activities 13.3 0.1 (95.6) (95.5)
Profit (loss) on
ordinary activities
after taxation 16.0 (38.8) (1,219.9) (1,258.7)
----------------------------------------------------------------------
Equity dividends -
paid and proposed - -
Retained profit (loss) 16.0 (1,258.7)
----------------------------------------------------------------------
Earnings (loss) per
share - basic 0.8p (2.1p) (64.6p) (66.7p)
Earnings (loss) per
share - diluted 0.8p (2.1p) (64.6p) (66.7p)
----------------------------------------------------------------------
(a) Dollar equivalents are provided for reader convenience at the
December 31, 2002 exchange rate of (pounds)1 = $1.5353
Consolidated Balance Sheet as at December 31, 2002
----------------------------------------------------------------------
December December
31, 31, June
2002 2001 30,
(pounds)m (pounds)m 2002
Notes (un- (un- (pounds)m
audited) audited) (audited)
----------------------------------------------------------------------
Fixed assets
Intangible assets 8 593.7 714.5 657.4
Tangible assets 336.5 314.4 343.0
Investments 9 108.0 109.2 128.9
1,038.2 1,138.1 1,129.3
----------------------------------------------------------------------
Current assets
Stocks 627.3 648.9 414.2
Debtors: Amounts falling due
within one year 432.7 521.4 400.9
Debtors: Amounts falling due
after more than one year 203.8 216.9 207.0
Cash at bank and in hand 51.1 86.5 50.3
1,314.9 1,473.7 1,072.4
----------------------------------------------------------------------
Creditors: Amounts falling due
within one year
- short-term borrowings (0.5) (2.6) (1.5)
- other creditors (1,179.6) (938.5) (903.9)
(1,180.1) (941.1) (905.4)
----------------------------------------------------------------------
Net current assets 134.8 532.6 167.0
----------------------------------------------------------------------
Total assets less current
liabilities 1,173.0 1,670.7 1,296.3
----------------------------------------------------------------------
Creditors: Amounts falling due
after more than one year
- long-term borrowings (1,436.7) (1,917.1) (1,576.9)
- other creditors (17.0) (12.1) (16.0)
(1,453.7) (1,929.2) (1,592.9)
----------------------------------------------------------------------
Provisions for liabilities and
charges (3.5) (15.6) (4.1)
(284.2) (274.1) (300.7)
----------------------------------------------------------------------
Capital and reserves - equity
Called-up share capital 10 968.4 946.3 946.7
Share premium 10 2,530.2 2,404.8 2,409.8
Shares to be issued 10 2.7 256.9 255.8
Merger reserve 10 335.7 304.2 266.7
Profit and loss account 10 (4,121.2) (4,186.3) (4,179.7)
10 (284.2) (274.1) (300.7)
----------------------------------------------------------------------
The accompanying notes are an integral part of this consolidated
Balance Sheet.
Consolidated Cash Flow Statement for the half year ended
December 31, 2002
----------------------------------------------------------------------
2002/2003 2001/2002 2001/2002
Half year Half year Full year
(pounds)m (pounds)m (pounds)m
(un- (un-
Notes audited) audited) (audited)
----------------------------------------------------------------------
Net cash inflow (outflow) from
operating activities 11a 254.5 (177.9) 249.7
Returns on investments and
servicing of finance
Interest received and similar
income 1.7 6.7 8.8
Interest paid and similar
charges on external financing (67.5) (68.9) (141.0)
Interest element of finance lease
payments (0.3) (0.2) (0.6)
Net cash outflow from returns on
investments and servicing of
finance (66.1) (62.4) (132.8)
----------------------------------------------------------------------
Taxation
Consortium relief received - - 22.5
Net cash inflow from taxation - - 22.5
----------------------------------------------------------------------
Capital expenditure and financial
investment
Payments to acquire tangible
fixed assets (43.9) (49.3) (100.8)
Receipts from sales of fixed
asset investments - 0.4 0.4
Receipts from sales of intangible
assets - 0.6 0.6
Purchase of own shares (ESOP) - (6.7) (26.9)
Net cash outflow from capital
expenditure and financial
investment (43.9) (55.0) (126.7)
----------------------------------------------------------------------
Acquisitions and disposals
Funding to joint ventures (5.3) (3.3) (11.6)
Repayments of funding from joint
ventures 2.4 1.9 4.8
Net cash outflow from
acquisitions and disposals (2.9) (1.4) (6.8)
----------------------------------------------------------------------
Net cash inflow (outflow) before
management of liquid resources
and financing 141.6 (296.7) 5.9
----------------------------------------------------------------------
Management of liquid resources
Decrease in short-term deposits 11b 0.5 55.3 69.5
----------------------------------------------------------------------
Financing
Proceeds from issue of ordinary
shares 0.5 11.8 14.3
Payments made on the issue of
ordinary shares (0.1) (1.8) (1.8)
Capital element of finance lease
payments 11b (1.2) (0.4) (1.7)
Net (decrease) increase in total
debt 11b (140.0) 150.0 (190.0)
Net cash (outflow) inflow from
financing (140.8) 159.6 (179.2)
----------------------------------------------------------------------
Increase (decrease) in cash 11b 1.3 (81.8) (103.8)
----------------------------------------------------------------------
Decrease (increase) in net debt 11b 142.0 (286.7) 18.4
----------------------------------------------------------------------
The accompanying notes are an integral part of this consolidated Cash
Flow Statement.
Consolidated Statement of Total Recognized Gains and Losses for the
half year ended December 31, 2002
----------------------------------------------------------------------
2002/2003 2001/2002 2001/2002
Half year Half year Full year
(pounds)m (pounds)m (pounds)m
(un- (un-
Notes audited) audited) (audited)
----------------------------------------------------------------------
Profit (loss) for the period 10 16.1 (1,353.5) (1,382.6)
Translation differences on
foreign currency net investment - 1.4 1.4
Total gains and losses relating
to the period 16.1 (1,352.1) (1,381.2)
----------------------------------------------------------------------
Included within the profit (loss) for the period is a (pounds) 0.8
million profit (2001/2002: half year (pounds) 63.1 million loss; full
year: (pounds) 80.9 million loss) in respect of the Group's share of
the results of joint ventures.
The accompanying notes are an integral part of this consolidated
Statement of Total Recognized Gains and Losses.
Notes to Accounts
1 Basis of preparation
The interim accounts for the half year ended December 31, 2002
have been prepared in accordance with accounting policies consistent
with those applied in the accounts for the year ended June 30, 2002,
which were approved by the Directors on July 30, 2002. The interim
accounts for the six months ended December 31, 2002 do not constitute
statutory accounts and are unaudited, but have been formally reviewed
by Deloitte & Touche. Deloitte & Touche's report is not qualified in
any respect. The interim accounts were approved by the Board of
Directors on February 13, 2003.
The financial information for the 2001/2002 full year is extracted
from the accounts for that year which have been filed with the
Registrar of Companies. The auditors' report on those accounts was
unqualified and did not contain any statement under section 237(2) or
(3) of the Companies Act 1985.
At December 31, 2002, the Group's balance sheet showed net
liabilities of (pounds) 284.2 million. The Directors consider that the
operating cash flows of the Group, together with its own bank
facilities, will be sufficient to cover the Group's projected
operating requirements and to settle or refinance the Group's other
liabilities as they fall due. Accordingly the interim accounts are
prepared on a going concern basis.
2 Turnover
The Group's turnover, whilst deriving from one class of business,
has been analyzed as follows:
2002/2003 2001/2002 2001/2002
Half year Half year Full year
(pounds)m (pounds)m (pounds)m
(unaudited)(unaudited) (audited)
----------------------------------------------------------------------
Direct-to-home subscribers 1,112.0 904.9 1,929.2
Cable and DTT subscribers 98.0 147.5 279.4
Advertising 133.0 118.1 250.7
Interactive 90.8 91.0 186.0
Other 77.5 59.1 130.8
1,511.3 1,320.6 2,776.1
----------------------------------------------------------------------
3 Operating expenses, net
----------------------------------------------------------------------
2002/2003
Half year 2002/2003
Before Half year
goodwill Goodwill
and and 2002/2003
exceptional exceptional Half year
items items Total
(pounds)m (pounds)m (pounds)m
(unaudited) (unaudited) (unaudited)
----------------------------------------------------------------------
Programming (i) 744.2 - 744.2
Transmission and
related functions (i) (ii) 73.5 - 73.5
Marketing 215.6 - 215.6
Subscriber management 161.2 - 161.2
Administration (ii) 118.6 63.7 182.3
Betting 39.9 - 39.9
1,353.0 63.7 1,416.7
----------------------------------------------------------------------
2001/2002
Half year 2001/2002
Before Half year
goodwill Goodwill
and and 2001/2002 2001/2002
exceptional exceptional Half year Full year
items items Total Total
(pounds)m (pounds)m (pounds)m (pounds)m
(unaudited) (unaudited) (unaudited) (audited)
----------------------------------------------------------------------
Programming (i) 657.4 - 657.4 1,439.3
Transmission
and related
functions (i) (ii) 71.9 - 71.9 142.5
Marketing 220.2 - 220.2 416.6
Subscriber management 146.5 - 146.5 291.1
Administration (ii) 107.8 59.8 167.6 343.8
Betting 46.7 - 46.7 87.8
1,250.5 59.8 1,310.3 2,721.1
----------------------------------------------------------------------
(i) The amounts shown are net of (pounds) 7.3 million (2001/2002:
half year (pounds) 5.0 million; full year (pounds) 15.3
million) receivable from the disposal of programming rights
not acquired for use by the Group, and (pounds) 12.0 million
(2001/2002: half year (pounds) 11.9 million; full year
(pounds) 23.7 million) in respect of the provision to third
party broadcasters of spare transponder capacity.
(ii) Transmission and related functions costs for the 2001/2002
full year include an exceptional credit of (pounds) 4.1
million. Administration costs for the 2001/2002 full year
include goodwill and exceptional items of (pounds) 140.6
million.
4 Share of operating results of joint ventures
----------------------------------------------------------------------
2002/2003 2001/2002 2001/2002
Half year Half year Full year
(pounds)m (pounds)m (pounds)m
(unaudited) (unaudited)(audited)
----------------------------------------------------------------------
KirchPayTV GmbH & Co KGaA
("KirchPayTV") operating loss - (57.1) (70.0)
Programming joint ventures' operating
profit (loss), net 1.7 (2.7) (6.7)
1.7 (59.8) (76.7)
----------------------------------------------------------------------
This relates to the Group's equity share of the operating results
of the Group's joint ventures.
By February 8, 2002, the Group considered that its relationship
with KirchPayTV had irrevocably 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.
5 Tax on profit (loss) on ordinary activities
Analysis of charge (credit) in period:
----------------------------------------------------------------------
2002/2003 2001/2002 2001/2002
Half year Half year Full year
(pounds)m (pounds)m (pounds)m
(unaudited) (unaudited) (audited)
----------------------------------------------------------------------
Tax charge (credit)
on profit before
exceptional items:
Current tax 26.7 - -
Deferred tax (35.9) 4.9 27.3
Adjustment in respect of
prior year - deferred tax 7.2 - -
Share of joint
ventures' tax charge 1.0 0.6 1.3
(1.0) 5.5 28.6
----------------------------------------------------------------------
Exceptional tax charge (credit):
Current tax 1.5 - -
Deferred tax credit on operating
exceptional items - - (5.5)
Exceptional deferred tax charge (i) - 95.6 83.3
1.5 95.6 77.8
----------------------------------------------------------------------
0.5 101.1 106.4
----------------------------------------------------------------------
During the period the Group recognized a deferred tax asset of
(pounds) 37.1 million in respect of tax losses carried forward and
(pounds) 3.3 million in respect of fixed asset timing differences. The
Directors consider that there is now sufficient evidence to support
the recognition of these deferred tax assets on the basis that there
will be suitable taxable profits against which these assets can be
utilized.
At December 31, 2002, a deferred tax asset of (pounds)134.4
million (2001/2002: half year (pounds) 203.2 million; full year
(pounds) 167.6 million), arising principally from losses in the Group,
has not been recognized. These losses can be offset only against
taxable profits generated in the entities concerned. Although the
Directors ultimately expect sufficient profits to arise, there is
currently insufficient evidence to support recognition of a deferred
tax asset relating to these losses.
(i) An exceptional deferred tax charge of (pounds) 95.6 million
was made at December 31, 2001, against which (pounds) 12.3
million was written back at June 30, 2002 as a result of the
utilization of tax losses.
6 Dividends
The Directors do not propose a dividend for the period (2001/2002:
half year nil; full year nil).
7 Earnings (loss) per share
Basic earnings (loss) per share represents the profit (loss)
attributable to the equity shareholders in each period divided by the
weighted average number of Ordinary Shares in issue during the period
less the weighted average number of shares held in the Group's ESOP
trust of 1,898,715,178 (2001/2002: half year 1,886,064,965; full year:
1,887,375,018).
Diluted earnings (loss) per share represents the profit (loss)
attributable to the equity shareholders divided by the weighted
average number of Ordinary Shares in issue during the period, as
adjusted for the weighted average number of Ordinary Shares that would
be issued on the conversion of all dilutive potential Ordinary Shares
into Ordinary Shares and the weighted average number of shares held in
the Group's ESOP trust of 1,898,715,178 (2001/2002: half year
1,886,064,965; full year: 1,887,375,018). Options over 39,236,701
shares in 2002/2003 half year (2001/2002 half year: 43,210,763 shares
and 42,845,578 shares in the 2001/2002 full year) were excluded from
the calculation of the total diluted number of shares in those
periods, as they were antidilutive. Deferred and contingently issuable
shares, valued at (pounds) 255.8 million, were excluded in the
2001/2002 full year and 2001/2002 half year (2002/2003 half year nil)
as they were antidilutive.
8 Intangible assets
The movement in the period was as follows:
Goodwill(i) Other Total
(pounds)m (pounds)m (pounds)m
(unaudited) (unaudited)(unaudited)
----------------------------------------------------------------------
Net book value at July 1, 2002 657.2 0.2 657.4
Amortization (ii) (63.7) - (63.7)
Net book value at December 31, 2002 593.5 0.2 593.7
----------------------------------------------------------------------
(i) Goodwill of (pounds) 272.4 million, (pounds) 542.0 million and
(pounds) 5.2 million, arising on the acquisitions of Sports
Internet Group ("SIG"), British Interactive Broadcasting
("BIB") and WAP TV respectively, is being amortized over
periods of seven years on a straight-line basis.
(ii) At December 31, 2002, the Group has made a provision of
(pounds) 5.2 million, included within amortization, against
goodwill which arose on the acquisition of Opta Index Limited
("Opta") (a sports media and information company, a subsidiary
of SIG, which provides statistics on the sports industry),
reducing the carrying value of the goodwill to nil. The
provision has been made as a result of the Group's
announcement to close Opta in May 2003 if sufficient
sponsorship revenue has not been generated by that date.
9 Fixed asset investments
Dec. 31, Dec. 31, June 30,
2002 2001 2002
(pounds)m (pounds)m (pounds)m
(unaudited)(unaudited)(audited)
----------------------------------------------------------------------
Programming joint ventures 27.8 22.3 21.8
Investment in own shares 39.2 22.0 42.2
Other investments 41.0 64.9 64.9
Total investments 108.0 109.2 128.9
----------------------------------------------------------------------
Investment in own shares
At December 31, 2002, the Group's employee ownership trust
("ESOP") held 6.2 million Ordinary Shares in the Company at an average
value of (pounds) 6.36 per share. The 0.4 million shares utilized
during the period relate to the grants of shares under the Long Term
Incentive Plan ("LTIP") and Key Contributor Plan ("KCP").
During May 2002, the Trustees of the ESOP, as authorized by the
Board, purchased 3.0 million of the Company's Ordinary Shares in the
open market, funded by a loan from the Company. These shares will be
utilized, together with shares already held by the ESOP, to satisfy
the exercise of employee share options and share awards under the
Group's LTIP and KCP.
Other investments
2002
At December 31, 2002, the Group has made a further provision
against its minority equity investments in football clubs leading to a
non-cash exceptional charge of (pounds) 21.0 million.
At December 31, 2002, the Group reduced its deferred revenue
balance by (pounds) 5.1 million relating to minority investments in
new media companies, and reduced both its investment and provision
against the investment in these companies by (pounds) 5.1 million
accordingly.
At December 31, 2002, the Group made a provision against its
investment in Open TV shares, leading to a non-cash exceptional charge
of (pounds) 2.9 million. This brought the carrying value of the
Group's investment in Open TV to (pounds) 0.3 million.
2001
On July 2, 2001, the Group disposed of its unlisted investment in
Static 2358 Limited, realizing a profit on disposal of (pounds) 2.3
million.
At December 31, 2001, the Group made a provision against its
minority equity investments in football clubs, leading to a non-cash
exceptional charge of (pounds) 60.0 million.
At December 31, 2001, the carrying value of the Group's investment
in its KirchPayTV joint venture was written down to nil, following an
exceptional charge to joint ventures' goodwill amortization of
(pounds) 984.9 million. Joint ventures' goodwill amortization also
included goodwill amortization of (pounds) 98.5 million for the six
months ended December 31, 2001. The Group's investment in KirchPayTV
was treated as a joint venture until February 8, 2002, after which
date the Group considered that it was no longer able to exercise
significant influence over KirchPayTV. Accordingly, on February 8,
2002, the investment was transferred within fixed asset investments to
"Other investments" at a net book value of nil. On August 11, 2002,
formal insolvency proceedings were opened for KirchPayTV. The Group
does not expect to receive any funds from these proceedings.
10 Reconciliation of movement in shareholders' deficit
Share Share Shares to
capital premium be issued
(pounds)m (pounds)m (pounds)m
(unaudited) (unaudited)(unaudited)
----------------------------------------------------------------------
As at July 1, 2002 946.7 2,409.8 255.8
Issue of share capital 21.7 120.5 (253.1)
Share issue costs - (0.1) -
Profit for the period - - -
Transfer from merger reserve - - -
As at December 31, 2002 968.4 2,530.2 2.7
----------------------------------------------------------------------
Profit Total
Merger and loss shareholders'
reserve account deficit
(pounds)m (pounds)m (pounds)m
(unaudited) (unaudited) (unaudited)
----------------------------------------------------------------------
As at July 1, 2002 266.7 (4,179.7) (300.7)
Issue of share capital 111.5 (0.1) 0.5
Share issue costs - - (0.1)
Profit for the period - 16.1 16.1
Transfer from merger reserve (42.5) 42.5 -
As at December 31, 2002 335.7 (4,121.2) (284.2)
----------------------------------------------------------------------
During the period the Company issued shares with a market value of
(pounds) 0.6 million (2001/2002: half year (pounds) 30.9 million; full
year (pounds) 35.2 million) in respect of the exercise of options
awarded under various share option schemes, with (pounds) 0.5 million
(2001/2002: half year (pounds) 11.8 million; full year (pounds) 14.3
million) received from employees.
On November 11, 2002, the Company issued 43.2 million shares with
a fair value of (pounds) 253.1 million to HSBC, Matsushita and BT in
respect of deferred consideration for the acquisition of the remaining
67.5% of BiB in May and June 2001.
11a Reconciliation of operating profit to operating cash flows
2002/2003 2001/2002 2001/2002
Half year Half year Full year
(pounds)m (pounds)m (pounds)m
(unaudited) (unaudited) (audited)
----------------------------------------------------------------------
Operating profit 94.6 10.3 55.0
Depreciation 44.2 41.0 81.1
Amortization of goodwill
and other intangible assets 63.7 59.8 118.4
Decrease (increase)
in working capital 52.6 (261.6) 29.6
Provisions utilized, net (0.6) (27.4) (34.4)
Net cash inflow (outflow) from
operating activities 254.5 (177.9) 249.7
----------------------------------------------------------------------
11b Analysis of changes in net debt
As at As at
July 1, Dec, 31,
2002 Cash flow 2002
(pounds)m (pounds)m (pounds)m
(audited) (unaudited) (unaudited)
----------------------------------------------------------------------
Overnight deposits 38.7 (38.7) -
Other cash 11.1 40.0 51.1
49.8 1.3 51.1
----------------------------------------------------------------------
Short-term deposits 0.5 (0.5) -
Cash at bank and in hand 50.3 0.8 51.1
----------------------------------------------------------------------
Debt due after more than one year (1,569.1) 140.0 (1,429.1)
Finance leases (9.3) 1.2 (8.1)
Total debt (1,578.4) 141.2 (1,437.2)
----------------------------------------------------------------------
Total net debt (1,528.1) 142.0 (1,386.1)
----------------------------------------------------------------------
12 EBITDA EBITDA (Earnings before interest, tax, depreciation and amortization) is calculated as operating profit before depreciation and amortization of goodwill and intangible assets Intangible Asset An asset that is not physical in nature. Notes: Examples are things like copyrights, patents, intellectual property, and goodwill. These are the opposite of tangible assets. . 13 Regulatory reg·u·late tr.v. reg·u·lat·ed, reg·u·lat·ing, reg·u·lates 1. To control or direct according to rule, principle, or law. 2. update Office of Fair Trading ("OFT") The OFT announced an investigation of the Group on January 11, 2000. The investigation initially commenced under the Fair Trading Act 1973. On December 5, 2000, the OFT indicated that it wished to continue its inquiry under the Competition Act, and on December 17, 2001, the OFT announced that it had issued a Rule 14 Notice to the Group and proposed to make a decision that the Group had behaved anti-competitively, infringing UK competition law. The Group maintained that it had not infringed the Competition Act and welcomed the opportunity to put its case to the OFT. On December 17, 2002, following the submission Submission Elliott, Anne reluctantly gives up her fiancé on her family’s advice. [Br. Lit.: Jane Austen Persuasion in Magill I, 734] by the Group of written and oral representations on the Rule 14 Notice, the OFT announced that the Group had not been found in breach of competition law. EC Investigation - Football Association Premier League Limited ("FAPL FAPL Football Association Premier League (UK) FAPL Freedom Alliance Party of Liberia FAPL Florida Association of Professional Lobbyists FAPL Fire Alarm Panel, Local FAPL Financial Assistance Policy Letter FAPL Farnworth Area Pool League ") The EC Commission has commenced investigations into a number of agreements, decisions or practices leading to the acquisition of broadcast rights to football events within the European Union European Union (EU), name given since the ratification (Nov., 1993) of the Treaty of European Union, or Maastricht Treaty, to the European Community , including the sale of exclusive broadcast rights to Premier League football by the FAPL. On June 21, 2002, the Group and the FAPL notified the Group's current agreements for FAPL rights to the EC Commission seeking either a clearance CLEARANCE, com. law. The name of a certificate given by the collector of a port, in which is stated the master or commander (naming him) of a ship or vessel named and described, bound for a port, named, and having on board goods described, has entered and cleared his ship or vessel or an exemption exemption n. 1) in income taxation, a credit given for each dependent, blindness or other disability, and age over 65, which result in a downward calculation in tax levels. from Article 81 of the EC Treaty. The FAPL also notified the rules of the FAPL to the EC Commission. On December 20, 2002, the EC Commission issued a Statement of Objections to the FAPL outlining certain concerns in respect of the FAPL's joint selling of broadcast rights to Premier League football. It is too early to assess whether this will have a material effect on the Group.(2) EC Investigation - Movie Contracts The European Commission European Commission, branch of the governing body of the European Union (EU) invested with executive and some legislative powers. Located in Brussels, Belgium, it was founded in 1967 when the three treaty organizations comprising what was then the European Community is investigating the terms on which movies produced by major US movie studios are supplied to distributors, including pay TV operators, throughout the European Union. The Group has co-operated with this investigation. At this stage, the Group is unable to determine whether it will have a material effect on the Group. Ireland The Group is currently not regulated reg·u·late tr.v. reg·u·lat·ed, reg·u·lat·ing, reg·u·lates 1. To control or direct according to rule, principle, or law. 2. by the Irish national communications regulatory authority Noun 1. regulatory authority - a governmental agency that regulates businesses in the public interest regulatory agency administrative body, administrative unit - a unit with administrative responsibilities , the Commission for Communications Regulation The Commission for Communications Regulation (ComReg) is the general communications regulator for the Republic of Ireland, covering almost all possible types of communications. ("ComReg", which replaced the former telecommunications Communicating information, including data, text, pictures, voice and video over long distance. See communications. regulator regulator, n the mechanical part of a gas delivery system that controls gas pressure that allows a manageable flow of drug vapor to escape. regulator see reducing valve. , the Office of the Director of Telecommunications Regulation on December 1, 2002). The services offered by the Group fall under the jurisdiction of Oftel and the ITC ITC (Brit) n abbr (= Independent Television Commission) → Fernseh-Aufsichtsgremium ITC n abbr (BRIT) (= Independent Television Commission) → in the UK. The Irish Government is undertaking a consultation exercise concerning the implementation of the package of EC electronic communications directives. The Irish Government has announced that it intends to implement these directives by July July: see month. 25, 2003, the deadline set in the directives. It is possible, depending on how the directives are implemented, that ComReg will seek to regulate reg·u·late v. 1. To control or direct according to rule, principle, or law. 2. To adjust to a particular specification or requirement. 3. To adjust a mechanism for accurate and proper functioning. 4. the Group's Irish operations. In addition, the Government of Ireland has indicated that it intends to introduce a list of designated events (pursuant to the Broadcasting (Major Events Television Coverage) Act 1999) in respect of television coverage in Ireland of certain events of major importance to Irish society The Irish Society may refer to:
(2) If a company infringes Article 81 of the EC Treaty, it may be fined up to 10% of total annual group worldwide turnover. In addition, third parties may be 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: to seek damages where they have suffered loss as a result of an infringement The encroachment, breach, or violation of a right, law, regulation, or contract. The term is most frequently used in reference to the invasion of rights secured by Copyright, patent, or trademark. of EC competition law. |
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