British Sky Broadcasting Group plc; Results for the Year Ended June 30, 2001.Business Editors LONDON--(BUSINESS WIRE)--July 25, 2001 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. Group 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 year ended June June: see month. 30, 2001. BSkyB BSkyB British Sky Broadcasting delivers strong 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. growth - Strong growth in DTH subscribers to 5.5 million (up 21%) - Revenue increases by 25% to(pound)2,306 million ($3,253 million) - Operating profit before goodwill and exceptionals increases by 88% to (pound)160 million ($226 million) - EBITDA before exceptionals increases by 67% to (pound)224 million ($316 million) - ARPU ahead of target at (pound)313 ($441), including interactive ARPU of (pound)11 ($15) - Sky+ integrated personal television recorder launching this autumn Tony Ball, Chief Executive of British Sky Broadcasting Group plc, said: "Sky's operating profit has increased by 88% to (pound)160 million ($226 million). We continue to add record numbers of subscribers and increase the average revenue per 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. . We therefore remain on track to meet both our subscriber and 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. targets. Our focus will remain on profitability driven by strong revenue growth and we look forward to delivering positive cashflow from the end of this calendar year onwards on·ward adj. Moving or tending forward. adv. also on·wards In a direction or toward a position that is ahead in space or time; forward. Adv. 1. ." Enquiries: Analysts/Investors: Neil Chugani Tel: 020 7705 3837 Andrew Griffith Tel: 020 7705 3118 James Cotton Tel: 020 7705 3718 E-mail: investor-relations@bskyb.com Press: Julian Eccles Tel: 020 7705 3000 Andrew Sholl Tel: 020 7705 3191 Vanessa Draper Tel: 020 7705 3090 E-mail: corporate.communications@bskyb.com Portland: Tim Allan Tel: 020 7404 5344 There will be a presentation to analysts and investors at 9.30 a.m. today at The Gibson Hall, 13 Bishopsgate Coordinates:
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. , EC2M 4QB and to press at 11.00 a.m. 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 conference call for US analysts will be held at 9.30 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 Patrick Lyon Lyon English Lyons City (pop., 1999: city, 445,452; metro. area, 1,348,932), east-central France. Located at the confluence of the Rhône and Saône rivers, it was founded as the Roman military colony Lugdunum in 43 BC (see at Taylor Taylor, city (1990 pop. 70,811), Wayne co., SE Mich., a suburb of Detroit adjacent to Dearborn; founded 1847 as a township, inc. as a city 1968. A small rural village until World War II, it developed significantly in the second half of the 20th cent. Rafferty Rafferty or Rafferty's rules Noun, pl Austral & NZ slang no rules at all [origin unknown] on +1 212 889 4350. A webcast of the presentation to analysts, together with this press release will be available from 2.00 p.m. today on Sky's corporate website which may be found at www.sky.com/corporate and on the Raw Communications network The transmission channels interconnecting all client and server stations as well as all supporting hardware and software. (subscribing subscribing - subscribe institutions only). OPERATING REVIEW Total UK and Eire subscribers to Sky's channels increased by 1.0 million to 10.0 million in the year to June 30, 2001 (`the year') and by 153,000 in the quarter ended June 30, 2001 (`the quarter'). The total number of DTH (Direct-To-Home) Typically refers to satellite TV broadcasting directly to a dish antenna on the roof of a house. See DBS. subscribers increased by 940,000 in the year (150,000 in the quarter) to 5,453,000. At June 30, 2001 the total number of digital subscribers was 5.3 million, an increase of 1.7 million in the year. The number of cable and DTT DTT Deloitte Touche Tohmatsu (Deloitte & Touch Global Operations) DTT Dithiothreitol (cytology reagent) DTT Digital Terrestrial Television DTT Discrete Trial Training subscribers taking Sky channels on June 30, 2001 was 4.6 million, an increase of 116,000 on the prior year. The quarterly 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. average revenue per DTH subscriber (ARPU) at June 30, 2001 was (pound)313 ($441), pro forma As a matter of form or for the sake of form. Used to describe accounting, financial, and other statements or conclusions based upon assumed or anticipated facts. The phrase pro forma for the acquisition of British Interactive Broadcasting Holdings Limited ("BiB"). BiB has been 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 BSkyB's accounts since completion of the acquisition on May 9, 2001; the pro forma calculation of ARPU assumes full consolidation of BiB's results for the whole 3 months to June 30, 2001. Sky's core ARPU increased 7% to (pound)302 ($426), primarily as a result of the price rise in January January: see month. 2001. Take up of premium channels remains high with the top tier Sky World package taken by nearly 60% of all Sky digital subscribers. DTH churn churn: see butter. (analogue (electronics) analogue - (US: "analog") A description of a continuously variable signal or a circuit or device designed to handle such signals. The opposite is "discrete" or "digital". and digital) remained flat on the previous quarter at 10.0%, a reduction from 10.5% last year. This is encouraging since around 60% of digital DTH subscribers are now out of their initial 12 month contract period. The viewing share of Sky channels grew to 5.76% across all UK television homes, compared to 5.28% last year. This contributed to the 12% growth in advertising revenues in the year. Sky continues to offer unprecedented choice. There are currently over 240 channels available via digital satellite, including 22 channels wholly-owned by Sky, 16 joint venture channels, 68 third party channels retailed by Sky, 82 audio music and radio channels and 37 free-to-air Free-to-air (FTA) television (TV) and radio broadcasts are sent unencrypted and may be received via any suitable receiver. Free-to-view (FTV) is, generally, available without subscription but is encoded and may be restricted geographically. channels. Sky also delivers quality audiences to advertisers. A recent report by the research agency BMRB BMRB Biological Magnetic Resonance Data Bank BMRB British Market Research Bureau BMRB Boston Municipal Research Bureau BMRB Behavioral Medicine Research Building confirmed that cable and satellite 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. have a higher appreciation of the programs which they choose to watch. Sky Sports 1 and Sky Premier were the two most appreciated channels in the study. As well as appreciation, the higher level of attention generated by these channels makes viewers more likely to watch commercial breaks. Sky One remains the leading cable and satellite channel in 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 homes, with six of the top ten rated non-terrestrial entertainment programs in the quarter. The next few months will see the UK television premieres of X Men, Scary scar·y adj. scar·i·er, scar·i·est 1. Causing fright or alarm. 2. Easily scared; very timid. scar Movie and Snatch snatch removal of a newborn animal from the dam before it has an opportunity to suck. The objective is to rear it independently and free of colostrum-borne infection or of colostral antibodies. on Sky Box Office whilst American Beauty American Beauty n. A type of rose bearing large, long-stemmed purplish-red flowers. , Erin Erin (ĕr`ĭn, ēr`–), ancient and poetic name of Ireland. Brockovich, Gladiator gladiator (Latin; swordsman) Professional combatant in ancient Rome who engaged in fights to the death as sport. Gladiators originally performed at Etruscan funerals, the intent being to give the dead man armed attendants in the next world. , The Talented Mr. Ripley Rip·ley , George 1802-1880. American minister, scholar, and literary critic. An important figure in the New England Transcendentalist movement, he directed the utopian community at Brook Farm, near Boston (1841-1847), and was the literary critic of , The Green Mile, and Chicken Run come to Sky Premier. Sky Movies Active was successfully launched on May 16, 2001. The unique service offers eight streamed preview To see ahead of time. Page layout and word processing programs often have a preview function that lets you see how all the pages will appear before they are printed. In the days of character-based interfaces, a preview was absolutely necessary to see how different fonts would look or how screens, and a host of features including local cinema listings, latest movie news and shopping. Sky Sports continues to extend its unrivalled live and interactive coverage. The next three years' coverage of the Premier League, 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. and the England England, the largest and most populous portion of the United Kingdom of Great Britain and Northern Ireland (1991 pop. 46,382,050), 50,334 sq mi (130,365 sq km). It is bounded by Wales and the Irish Sea on the west and Scotland on the north. football team's next four internationals will all benefit from the enhanced coverage available on Sky Sports Extra. Premiership Plus coverage of an extra 40 Premier League games via a season ticket or pay-per-view pay-per-view n. A service offered by cable television companies that allows subscribers to view special programs for an additional charge. pay starts on Sky Box Office in August. Sky News' election coverage culminated with the much acclaimed ac·claim v. ac·claimed, ac·claim·ing, ac·claims v.tr. 1. To praise enthusiastically and often publicly; applaud. See Synonyms at praise. 2. interactive Election Special, achieving more than three times the combined viewing share of 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. News 24 and ITN ITN n abbr (Brit) (= Independent Television News) → chaîne de télévision commerciale ITN (Brit) n abbr (TV) (= Independent Television News) → 24. Interactive Services Sky's interactive services continue to lead the way. Included within Sky's ARPU of (pound)313 ($441) is interactive ARPU of (pound)11 ($15). This includes amounts paid by customers and by third parties, for example net betting margins, interconnect (1) To attach one device to another. (2) A physical port (plug, socket) or wireless port (transmitter, receiver) used to attach one device to another. revenues and fees from content providers. It also includes the 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. recovery and access control revenues of Marketing Contributions Company Limited (MCCo), the wholly-owned subsidiary of BiB, which MCCo receives from third party channels and interactive service providers for their use of the platform. Sky's experience as a pioneer of interactive television has shown that contextual and user-friendly user-friendly - Programmer-hostile. Generally used by hackers in a critical tone, to describe systems that hold the user's hand so obsessively that they make it painful for the more experienced and knowledgeable to get any work done. interactive services such as 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. are already widely used. Business models using fixed price telephone calls to facilitate micro-payments have started to generate significant revenues. Sky Sports Quiz Sports Quiz is a talk/comedy/variety radio program on 99.5 WUSR in the Scranton, Pennsylvania area. The show airs every Thursday night from 12:00am to 2:00am EST. The show's DJs are Tyler Durden, Canada Jackson, and DJ and producer DRock. , which is accessible by pressing the red button directly from the Sky Sports channels Sports channels are television specialty channels (usually available exclusively through cable and satellite) broadcast sporting events, usually live, and when not broadcasting events, sports news and other related programming. as well as from the interactive services menu The Services menu (or simply Services) is a user interface element in a computer operating system. The services are programs that accept input from the user selection, process it, and optionally put the result back in the clipboard. , has generated over 1 million premium rate calls to date. Sky Interactive continues to develop new services to widen wid·en tr. & intr.v. wid·ened, wid·en·ing, wid·ens To make or become wide or wider. wid  en·er n. the
range of useful features on Sky digital. A recent enhancement to Sky
digital text allows viewers to send text messages to any UK mobile
network simply by using their Sky remote control or cordless cord·less adj. Having no cord, usually using batteries as a source of power: a cordless telephone. cord keypad A small keyboard or supplementary keyboard keys; for example, the keys on a calculator or the number/cursor cluster on a computer keyboard. See programmable keypad. . This month, Sky launched a pilot service which allows customers to access their Sky account information via the television. Sky Interactive is working with other channel providers to bring the benefits of interactivity to a wide range of channels on Sky digital. E4's Big Brother Interactive allows viewers to choose between broadcast streams and vote using the Sky remote control. Sky shares in the interconnect revenue generated by these votes, which have accounted for over 30% of all votes cast. In June, the BBC launched its own enhanced Wimbledon Wimbledon, England: see Merton. Wimbledon Municipal center in the Greater London borough of Merton, known as the site of the annual lawn-tennis All-England Championships. coverage, offering a choice of up to five live matches from a variety of courts with constantly updated scores. A similar service was available recently for the BBC's coverage of the Open Golf Championship. On July July: see month. 12, 2001, Sky announced a 50:50 joint venture with Ladbrokes Ladbrokes plc (LSE: LAD) is a British based gambling company. It is based in Rayners Lane in Harrow, London. It is a member of the FTSE 250 Index, having been relegated from the elite FTSE 100 Index in June 2006. to develop and operate a fixed-odds and pools betting business linked to Sky channels on Sky Digital. In addition to its 50% share of net profits, Sky will receive an upfront cash payment of (pound)30 million ($42 million) on completion and on-going Adj. 1. on-going - currently happening; "an ongoing economic crisis" ongoing current - occurring in or belonging to the present time; "current events"; "the current topic"; "current negotiations"; "current psychoanalytic theories"; "the ship's current position" operational payments from the joint venture, linked to both betting volumes and profitability. KirchPayTV KirchPayTV reported revenues for the year to March 31, 2001 of (pound)527 million ($743 million) and operating costs operating costs npl → gastos mpl operacionales (before exceptionals) of (pound)1,053 million ($1,485 million) (translated at an average DM/(pound) rate of 3.17). The Group's share of KirchPayTV's pre-exceptional operating loss operating loss The excess of operating expenses over revenue. As with operating income, operating losses exclude revenues and expenses from operations that are not considered a regular part of the business. Also called deficit. Compare operating income. for the year was (pound)116 million ($164 million). At June 30, 2001 KirchPayTV had 2.3 million subscribers of which 2.1 million were digital; 79% of the digital subscribers were taking one of the top tier packages. Whilst believing in the long term potential of pay television in Germany As the world's third largest economy and with the largest population in the European Union, Germany today offers a vast diversity of television stations. History of German TV Before World War II , the Group does not expect a short term improvement in KirchPayTV's financial and operating performance since conditions for KirchPayTV remain challenging. The Group continues to monitor KirchPayTV's performance closely. FINANCIAL REVIEW Operating profit before exceptional items and goodwill for the year ending June 30, 2001 increased to (pound)160 million ($226 million), an improvement of 88% on the prior year. 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 year, before exceptional items, increased by 67% to (pound)224 million ($316 million). Revenues increased by (pound)459 million ($647 million) to (pound)2,306 million ($3,253 million), up 25% on the prior year. Costs increased by a smaller amount, up (pound)384 million ($542 million) to (pound)2,146 million ($3,027 million) before goodwill and exceptional items as the Group continued to invest in acquiring new subscribers and programming. After goodwill, interest, share of joint ventures' losses and exceptional items, the loss before tax was (pound)515 million ($726 million). The loss after tax was (pound)539 million ($760 million) and resulted in a loss of 29.2 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, ($41.2 cents) per share. Revenue DTH revenues increased by (pound)348 million ($491 million) (29%) to (pound)1,537 million ($2,168 million) driven by a 28% increase in the average number of subscribers. Following subscription price rises in January 2001, growth in ARPU was concentrated in the second half of the year. Wholesale revenue from cable fell by (pound)18 million ($25 million) in the year to (pound)247 million ($348 million) due to a 5% fall in the average number of cable subscribers taking one or more Sky channels. Wholesale revenue from DTT increased by (pound)14 million ($20 million) to (pound)52 million ($73 million) in line with the higher average number of subscribers. Advertising revenue increased by (pound)28 million ($39 million) (12%) to (pound)271 million ($382 million), reflecting the increased penetration The successful unauthorized breach of a security perimeter. See penetration test. of Sky's channels within UK TV homes, greater sponsorship revenues and the introduction of dedicated advertising sales for the Republic of 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. . Included within interactive revenues of (pound)93 million ($131 million) are gaming revenues of (pound)78 million ($110 million). The proposed contribution of Surrey Surrey, county (1991 pop. 997,000), 653 sq mi (1,691 sq km), SE England. The county seat is Guildford. The North Downs cross the county from east to west. To the north the land slopes gently downward to the Thames, into which flow the Wey and the Mole, Surrey's Sports to a 50:50 joint venture with Ladbrokes would result in future gaming revenues being accounted for within that joint venture and Sky recording its share of the joint venture's profits or losses below operating profit. Programming Costs Programming costs increased to (pound)1,134 million ($1,600 million), reflecting the growth in the number of subscribers, and the continued increase in the amount of programming, both original and acquired, which is now available on the digital platform. Sports costs increased by (pound)31 million ($44 million) to (pound)417 million ($588 million) primarily as a result of a contractual increase in the F.A. Premier League costs together with the cost of cricket cricket, sport cricket, ball-and-bat game played chiefly in Great Britain and the Commonwealth countries. Basic Rules Cricket is played by two teams of eleven on a level, closely cut oval "pitch" preferably measuring about 525 ft (160 m) , Rugby Union rugby union Noun a form of rugby played between teams of 15 players and Rugby League rugby league Noun a form of rugby played between teams of 13 players rights. An increase in movie costs of (pound)59 million ($83 million) to (pound)336 million ($474 million), reflected the 16% increase in the average number of movie subscribers and increased volumes of SBO SBO specified bovine offal. purchases. Entertainment programming costs increased by (pound)24 million ($34 million) to (pound)90 million ($127 million), driven by greater investment in commissioned programming on Sky One and increased licensed programming costs for the higher number of first run shows. DTH distribution fees paid to third party channels rose by (pound)79 million ($111 million) to (pound)256 million ($361 million), due to the increased average number of digital subscribers, partially offset by a decrease in analogue channel costs. Sky currently retails 84 television and 44 audio music channels provided by third parties and joint ventures. Other Operating Costs Marketing costs decreased by (pound)3 million ($4 million) to (pound)378 million ($533 million), due to lower spending on above-the-line advertising, the lower cost of set-top boxes The cable TV box that sits on "top" of the TV "set," although it is often located several feet away in an equipment rack. The set-top box descrambles the premium channels and provides a tuner for the higher cable numbers that very old TVs did not support. (despite the consolidation since May 9, 2001 of subsidies formerly paid by BiB) and efficiency gains in customer retention programs. Subscriber management costs increased by 22% to (pound)243 million ($343 million), due to the 28% increase in the average DTH subscriber base in the year. Transmission and related costs rose by (pound)23 million ($32 million) to (pound)129 million ($182 million), mainly as a result of increasing digital transmission costs and the inclusion of BiB transmission costs for the first time, partially offset by savings from reduced analogue operations. Administration costs increased by (pound)57 million ($80 million) to (pound)187 million ($264 million) due to the inclusion of interactive overhead costs overhead costs see fixed costs. and growth in the general administration costs required to support a larger and more complex group. Gaming costs for the year were (pound)75 million ($106 million). Other operating costs of Sky Interactive totaling (pound)48 million ($68 million), which are largely fixed in nature, have been consolidated within the relevant categories of operating costs. Joint Ventures The Group's share of pre-exceptional operating losses of joint ventures increased to (pound)239 million ($337 million) compared to (pound)121 million ($171 million) in the prior year. The increase was due to the inclusion of the Group's share of the operating losses of KirchPayTV ((pound)116 million) ($164 million) for a full year. The Group accounted for BiB as a 32.5% joint venture until November November: see month. 1, 2000. Between November 1 and May 9, 100% of BiB's losses were recognized. The Group's share of the operating loss of BiB (before exceptional items) increased by (pound)20 million ($28 million) to (pound)119 million ($168 million) in the year. Following completion of the acquisition of BiB on May 9, 2001, BiB's results have been consolidated within the results of the Group, after elimination of intercompany transactions Intercompany transaction Transaction carried out between two units of the same corporation. . The Group's share of losses in Sky Ventures reduced by (pound)7 million ($10 million) to (pound)4 million ($6 million). Exceptional items As disclosed dis·close tr.v. dis·closed, dis·clos·ing, dis·clos·es 1. To expose to view, as by removing a cover; uncover. 2. To make known (something heretofore kept secret). in the second and third quarter results announcements, the Group has made a general provision against its minority equity interests in new media companies reducing the balance sheet 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 these investments to nil. This has led to a non-cash exceptional charge for the year of (pound)39 million ($55 million) accounted for below operating profit (reduced from the (pound)40 million ($56 million) originally provided following a profit made on the post year end disposal of one of the investments). As disclosed in the first quarter results, there was a (pound)70 million ($99 million) non-cash exceptional charge in the year relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc KirchPayTV's disposal of its remaining BSkyB shares. In the quarter ended June 30, 2001 and prior to completion, BiB incurred costs of (pound)17 million ($24 million) principally in respect of the write down of the current platform. This exceptional charge is accounted for within the share of operating results of joint ventures. Following completion of the acquisition of BiB, Sky has taken an exceptional restructuring charge restructuring charge The expense of reorganizing a company's operations. A restructuring charge is an infrequent expense that generally results from asset writedowns or facility closings. of (pound)23 million ($32 million) and is restructuring restructuring - The transformation from one representation form to another at the same relative abstraction level, while preserving the subject system's external behaviour (functionality and semantics). Sky Interactive's ongoing cost base. Of this charge, (pound)7 million ($10 million) relates to a write-off Write-Off A reduction in the value of an asset or earnings by the amount of an expense or loss. Companies are able to write off certain expenses that are required to run the business, or have been incurred in the operation of the business and detract from retained revenues. of fixed assets fixed assets npl → activo sg fijo fixed assets npl → immobilisations fpl fixed assets fix npl → following the closure of duplicate DUPLICATE. The double of anything. 2. It is usually applied to agreements, letters, receipts, and the like, when two originals are made of either of them. Each copy has the same effect. sites. When Surrey Sports is contributed to the interactive betting joint venture announced by Ladbrokes and Sky on July 12, 2001, Sky will adjust existing goodwill on its balance sheet. A provision for this has been made in the year to June 30, 2001, resulting in a non-cash exceptional charge of approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. (pound)10 million ($14 million), accounted for below operating profit. Goodwill Goodwill amortization of (pound)44 million ($62 million) included in operating profit relates to the amortization over 7 years of goodwill arising on the acquisitions of Sports 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 Group and BiB. Amortization of joint ventures' goodwill of (pound)101 million ($142 million) primarily relates to the acquisition of the shareholding in KirchPayTV. Up to March 31, 2001, goodwill on this investment was amortized over a 20 period. During the year, Sky acquired Sports Internet Group and BiB, and for both these acquisitions, chose a useful economic life of 7 years as the relevant amortization period. As at April 1, 2001, it was considered appropriate to revise KirchPayTV's useful economic life to 7 years in line with these other acquisitions. The amortization charge follows the accounting treatment of KirchPayTV as a joint venture and is shown below operating profit as joint venture's goodwill amortization. Net debt 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 (pound)39 million ($55 million), compared to an operating cash outflow of (pound)233 million ($329 million) last year. After capital expenditure of (pound)133 million ($188 million), funding to BiB of (pound)136 million ($192 million), net interest payments of (pound)116 million ($164 million) and other net outflows of (pound)56 million ($79 million), net debt increased by (pound)402 million ($567 million) to (pound)1,547 million ($2,182 million). The net interest charge increased by (pound)41 million ($58 million) to (pound)132 million ($186 million) reflecting increased average borrowings in the year, and inclusion of the Group's share of KirchPayTV interest for a full 12 months of (pound)10 million ($14 million).
Appendix 1
Subscribers to Sky Channels
Prior Year
Q4 Q1 Q2 Q3 Q4
1999/00 2000/01 2000/01 2000/01 2000/01
as at as at as at as at as at
30/6/00 30/9/00 31/12/00 31/3/01 30/6/01
DTH
Digital 3,583,000 4,083,000 4,669,000 5,061,000 5,308,000
Analogue 930,000 640,000 382,000 242,000 145,000
--------- --------- --------- --------- ---------
Total DTH 4,513,000 4,723,000 5,051,000 5,303,000 5,453,000
Cable 3,122,000 3,052,000 3,093,000 2,903,000 2,865,000
DTT 740,000 846,000 975,000 1,054,000 1,105,000
--------- --------- --------- --------- ---------
Total UK 8,375,000 8,621,000 9,119,000 9,260,000 9,423,000
Cable - Eire 613,000 617,000 631,000 631,000 621,000
--------- --------- --------- --------- ---------
Total UK & Eire 8,988,000 9,238,000 9,750,000 9,891,000 10,044,000
DTH Churn rate
for year
to date
(annualized) 10.5% 9.8% 9.8% 9.9% 10.0%
British Sky Broadcasting Group plc
Consolidated Profit and Loss Account for the year ended June 30, 2001
Before
goodwill Goodwill
and and 2001
exceptional exceptional Total
items items
$m* $m* $m*
Notes (unaudited) (unaudited) (unaudited)
Turnover: Group and share of
joint ventures 3,568.7 - 3,568.7
Less: share of joint
ventures' turnover (316.1) - (316.1)
Group turnover 2 3,252.6 - 3,252.6
Continuing operations 3,131.5 - 3,131.5
Acquisitions 1 121.1 - 121.1
Group turnover 3,252.6 - 3,252.6
Operating expenses, net 3 (3,026.6) (95.1) (3,121.7)
EBITDA 20 316.4 (22.7) 293.7
Depreciation (90.4) (9.9) (100.3)
Amortization - (62.5) (62.5)
Continuing operations 241.8 - 241.8
Acquisitions 1 (15.8) (95.1) (110.9)
Operating profit (loss) 226.0 (95.1) 130.9
Share of operating results of
joint ventures 5 (337.4) (23.3) (360.7)
Joint ventures' goodwill
amortization - (142.6) (142.6)
Loss on sale of fixed asset
investments 4 - - -
Share of joint venture's loss
on sale of fixed asset
investment 4 - (98.0) (98.0)
Amounts written off fixed
asset investments 4 - (54.4) (54.4)
Provision for loss on
disposal of subsidiary 4 - (14.1) (14.1)
Loss on ordinary activities (111.4) (427.5) (538.9)
before interest and taxation
Interest receivable and
similar income 6 25.7 3.8 29.5
Interest payable and similar
charges 6 (216.2) - (216.2)
Loss on ordinary activities
before taxation (301.9) (423.7) (725.6)
Taxation (charge) credit 7 (32.9) (1.1) (34.0)
Loss on ordinary activities
after taxation (334.8) (424.8) (759.6)
Equity dividends - paid and
proposed -
Retained loss 17 (759.6)
Loss per share - basic and
diluted 8 (18.2c) (23.0c) (41.2c)
Loss per ADR - basic and
diluted** (109.2c) (138.0c) (247.2c)
Before
goodwill Goodwill
and and 2001
exceptional exceptional Total
items items
(pound)m (pound)m (pound)m
Notes (audited) (audited) (audited)
Turnover: Group and share of
joint ventures 2,530.1 - 2,530.1
Less: share of joint
ventures' turnover (224.1) - (224.1)
Group turnover 2 2,306.0 - 2,306.0
Continuing operations 2,220.1 - 2,220.1
Acquisitions 1 85.9 - 85.9
Group turnover 2,306.0 - 2,306.0
Operating expenses, net 3 (2,145.8) (67.4) (2,213.2)
EBITDA 20 224.3 (16.1) 208.2
Depreciation (64.1) (7.0) (71.1)
Amortization - (44.3) (44.3)
Continuing operations 171.4 - 171.4
Acquisitions 1 (11.2) (67.4) (78.6)
Operating profit (loss) 160.2 (67.4) 92.8
Share of operating results of
joint ventures 5 (239.2) (16.5) (255.7)
Joint ventures' goodwill
amortization - (101.1) (101.1)
Loss on sale of fixed asset
investments 4 - - -
Share of joint venture's loss
on sale of fixed asset
investment 4 - (69.5) (69.5)
Amounts written off fixed
asset investments 4 - (38.6) (38.6)
Provision for loss on
disposal of subsidiary 4 - (10.0) (10.0)
Loss on ordinary activities (79.0) (303.1) (382.1)
before interest and taxation
Interest receivable and
similar income 6 18.2 2.7 20.9
Interest payable and similar
charges 6 (153.3) - (153.3)
Loss on ordinary activities
before taxation (214.1) (300.4) (514.5)
Taxation (charge) credit 7 (23.3) (0.8) (24.1)
Loss on ordinary activities
after taxation (237.4) (301.2) (538.6)
Equity dividends - paid and
proposed -
Retained loss 17 (538.6)
Loss per share - basic and
diluted 8 (12.9p) (16.3p) (29.2p)
Loss per ADR - basic and
diluted** (77.4p) (97.8p) (175.2p)
Before
goodwill Goodwill
and and
exceptional exceptional 2000
items items Total
as as as
restated restated restated
(pound)m (pound)m (pound)m
Notes (audited) (audited) (audited)
Turnover: Group and share of
joint ventures 1,934.7 - 1,934.7
Less: share of joint
ventures' turnover (87.7) - (87.7)
Group turnover 2 1,847.0 - 1,847.0
Continuing operations 1,847.0 - 1,847.0
Acquisitions 1 - - -
Group turnover 1,847.0 - 1,847.0
Operating expenses, net 3 (1,761.7) (105.0) (1,866.7)
EBITDA 20 134.2 (101.9) 32.3
Depreciation (48.9) (3.1) (52.0)
Amortization - - -
Continuing operations 85.3 (105.0) (19.7)
Acquisitions 1 - - -
Operating profit (loss) 85.3 (105.0) (19.7)
Share of operating results of
joint ventures 5 (121.3) - (121.3)
Joint ventures' goodwill
amortization - (14.4) (14.4)
Loss on sale of fixed asset
investments 4 - (1.4) (1.4)
Share of joint venture's loss
on sale of fixed asset
investment 4 - (14.0) (14.0)
Amounts written off fixed
asset investments 4 - - -
Provision for loss on
disposal of subsidiary 4 - - -
Loss on ordinary activities (36.0) (134.8) (170.8)
before interest and taxation
Interest receivable and
similar income 6 10.7 - 10.7
Interest payable and similar
charges 6 (102.6) - (102.6)
Loss on ordinary activities
before taxation (127.9) (134.8) (262.7)
Taxation (charge) credit 7 33.5 31.5 65.0
Loss on ordinary activities
after taxation (94.4) (103.3) (197.7)
Equity dividends - paid and
proposed -
Retained loss 17 (197.7)
Loss per share - basic and
diluted 8 (5.4p) (5.9p) (11.3p)
Loss per ADR - basic and
diluted** (32.4p) (35.4p) (67.8p)
Details of movements on reserves are shown in note 17.
The accompanying notes are an integral part of this consolidated
profit and loss account.
* US dollar equivalents are provided for reader convenience at the
June 29, 2001 exchange rate of (pound)1=$1.4105
** Each ADR represents six ordinary shares
British Sky Broadcasting Group plc
Consolidated Profit and Loss Account for the three months ended June
30, 2001
Three
Three
Before months
goodwill Goodwill ended
and and June 30
exceptional exceptional 2001
items items Total
$m* $m* $m*
(unaudited) (unaudited) (unaudited)
Group turnover 895.5 - 895.5
Operating expenses, net (806.6) (56.2) (862.8)
EBITDA 118.9 (22.7) 96.2
Depreciation (30.0) (9.9) (39.9)
Amortization - (23.6) (23.6)
Operating profit (loss) 88.9 (56.2) 32.7
Share of operating results of (90.5) (23.3) (113.8)
joint ventures
Joint ventures' goodwill - (69.5) (69.5)
amortization
Share of joint venture's loss on
sale of fixed asset investment - - -
Amounts written off fixed asset - 2.0 2.0
investments
Provision for loss on disposal of - (14.1) (14.1)
subsidiary
Loss on ordinary activities before
interest and taxation (1.6) (161.1) (162.7)
Interest receivable and similar 5.2 3.8 9.0
income
Interest payable and similar (56.7) - (56.7)
charges
Loss on ordinary activities before (53.1) (157.3) (210.4)
taxation
Taxation (charge) credit (30.7) (1.2) (31.9)
Loss on ordinary activities after (83.8) (158.5) (242.3)
taxation
Loss per share - basic and diluted (4.5c) (8.6c) (13.1c)
Loss per ADR - basic and diluted** (27.0c) (51.6c) (78.6c)
Three
Before months
goodwill Goodwill ended
and and June 30
exceptional exceptional 2001
items items Total
(pound)m (pound)m (pound)m
(unaudited) (unaudited) (unaudited)
Group turnover 634.9 - 634.9
Operating expenses, net (571.9) (39.8) (611.7)
EBITDA 84.3 (16.1) 68.2
Depreciation (21.3) (7.0) (28.3)
Amortization - (16.7) (16.7)
Operating profit (loss) 63.0 (39.8) 23.2
Share of operating results of (64.2) (16.5) (80.7)
joint ventures
Joint ventures' goodwill - (49.3) (49.3)
amortization
Share of joint venture's loss on
sale of fixed asset investment - - -
Amounts written off fixed asset - 1.4 1.4
investments
Provision for loss on disposal of - (10.0) (10.0)
subsidiary
Loss on ordinary activities before
interest and taxation (1.2) (114.2) (115.4)
Interest receivable and similar 3.7 2.7 6.4
income
Interest payable and similar (40.2) - (40.2)
charges
Loss on ordinary activities before (37.7) (111.5) (149.2)
taxation
Taxation (charge) credit (21.8) (0.8) (22.6)
Loss on ordinary activities after (59.5) (112.3) (171.8)
taxation
Loss per share - basic and diluted (3.2p) (6.1p) (9.3p)
Loss per ADR - basic and diluted** (19.2p) (36.6p) (55.8p)
Three
months
Before Goodwill ended
goodwill and June 30
and exceptional 2000
exceptional items Total
items as as
as restated restated
restated
(pound)m (pound)m (pound)m
(unaudited) (unaudited) (unaudited)
Group turnover 530.1 - 530.1
Operating expenses, net (495.9) (105.0) (600.9)
EBITDA 48.8 (101.9) (53.1)
Depreciation (14.6) (3.1) (17.7)
Amortization - - -
Operating profit (loss) 34.2 (105.0) (70.8)
Share of operating results of (38.8) - (38.8)
joint ventures
Joint ventures' goodwill - (14.4) (14.4)
amortization
Share of joint venture's loss on
sale of fixed asset investment - (14.0) (14.0)
Amounts written off fixed asset - - -
investments
Provision for loss on disposal of - - -
subsidiary
Loss on ordinary activities before
interest and taxation (4.6) (133.4) (138.0)
Interest receivable and similar 2.0 - 2.0
income
Interest payable and similar (36.8) - (36.8)
charges
Loss on ordinary activities before (39.4) (133.4) (172.8)
taxation
Taxation (charge) credit 14.6 31.5 46.1
Loss on ordinary activities after (24.8) (101.9) (126.7)
taxation
Loss per share - basic and diluted (1.4p) (5.6p) (7.0p)
Loss per ADR - basic and diluted** (8.4p) (33.6p) (42.0p)
* US dollar equivalents are provided for reader convenience at the
June 29, 2001 exchange rate of (pound)1=$1.4105
** Each ADR represents six ordinary shares
British Sky Broadcasting Group plc
Consolidated Statement of Total Recognized Gains and Losses for the
year ended June 30, 2001
2001 2001 2000
$m* (pound)m (pound)m
Notes (unaudited) (audited) (audited)
Loss for the financial year (759.7) (538.6) (271.5)
Net loss on deemed disposals 17 (29.2) (20.7) -
Translation differences on
foreign currency net investment 17 (3.0) (2.1) 4.1
Total recognized gains and
losses relating to the year (791.9) (561.4) (267.4)
Prior year adjustment 212.3 150.5
Total recognized gains and
losses recognized since last
annual report (579.6) (410.9)
The accompanying notes are an integral part of this consolidated
statement of total recognized gains and losses.
* US dollar equivalents are provided for reader convenience at the
June 29, 2001 exchange rate of (pound)1=$1.4105
British Sky Broadcasting Group plc
Consolidated Balance Sheet as at June 30, 2001
2001 2001 2000
as restated
Notes $m* (pound)m (pound)m
(unaudited) (audited) (audited)
Fixed assets
Intangible assets 9 1,113.3 789.3 -
Tangible assets 10 444.9 315.4 224.9
Investments 11 1,842.0 1,305.9 1,660.6
3,400.2 2,410.6 1,885.5
Current assets
Stocks 12 598.2 424.1 358.2
Debtors: Amounts falling
due within one year 13 695.9 493.4 333.5
Debtors: Amounts falling
due after more
than one year 13 457.8 324.6 421.1
Cash at bank
and in hand 315.4 223.6 281.2
2,067.3 1,465.7 1,394.0
Creditors: Amounts falling
due within one year
- short-term borrowings 14 (3.0) (2.1) (13.8)
- other creditors 14 (1,394.5) (988.7) (808.9)
14 (1,397.5) (990.8) (822.7)
Net current assets 669.8 474.9 571.3
Total assets less
current liabilities 4,070.0 2,885.5 2,456.8
Creditors: Amounts falling
due after more than one year
- long-term borrowings 15 (2,493.8) (1,768.0) (1,412.4)
- other creditors 15 (19.6) (13.9) (22.0)
15 (2,513.4) (1,781.9) (1,434.4)
Provisions for liabilities
and charges 16 (60.6) (43.0) (225.5)
1,496.0 1,060.6 796.9
Capital and reserves
- equity
Called-up share capital 17 1,332.1 944.4 912.9
Share premium 17 3,353.6 2,377.6 2,209.9
Shares to be issued 17 362.3 256.9 -
Merger reserve 17 480.8 340.8 -
Profit and loss account 17 (4,032.8) (2,859.1) (2,325.9)
Total shareholders'
funds 17 1,496.0 1,060.6 796.9
The accompanying notes are an integral part of this consolidated
balance sheet.
* US dollar equivalents are provided for reader convenience at the
June 29, 2001 exchange rate of (pound)1=$1.4105
British Sky Broadcasting Group plc
Consolidated Cash Flow Statement for the year ended June 30, 2001
2001 2001 2000
$m* (pound)m (pound)m
Notes (unaudited) (audited) (audited)
Net cash inflow
(outflow) from
operating activities 18a 54.9 38.9 (232.5)
Returns on investments
and servicing of finance
Interest received and
similar income 6.5 4.6 9.8
Interest paid and similar
charges on external financing (167.3) (118.6) (73.9)
Interest element of
finance lease payments (2.4) (1.7) (0.8)
Net cash outflow from
returns on investments
and servicing of finance (163.2) (115.7) (64.9)
Taxation
Consortium relief paid (22.9) (16.2) (23.6)
Net cash outflow from taxation (22.9) (16.2) (23.6)
Capital expenditure and
financial investment
Payments to acquire
tangible fixed assets (188.0) (133.3) (57.9)
Payments to acquire
fixed asset investments (36.0) (25.5) (48.0)
Receipt from sales of fixed
asset investments
and intangible assets 0.3 0.2 5.3
Receipt of government grants - - 0.6
Net cash outflow from capital
expenditure and
financial investment (223.7) (158.6) (100.0)
Acquisitions and disposals
Purchase of subsidiary
undertakings (38.5) (27.3) -
Net cash acquired with
subsidiary undertakings 16.5 11.7 -
Funding to joint ventures (193.7) (137.3) (79.9)
Repayments of funding
from joint ventures - - 1.7
Net payments made in the
acquisition of joint ventures - - (333.0)
Net cash outflow from
acquisitions and disposals (215.7) (152.9) (411.2)
Net cash outflow before
management of liquid
resources and financing (570.6) (404.5) (832.2)
Management of liquid resources
Decrease (increase) in
short-term deposits 18c 119.9 85.0 (155.0)
Financing
Proceeds from issue of
ordinary shares 9.2 6.5 359.8
Payments made on the
issue of ordinary shares (4.9) (3.5) (7.7)
Net increase in
total debt 18c 504.4 357.6 697.4
Net cash inflow from
financing 508.7 360.6 1,049.5
Increase in cash 18c 58.0 41.1 62.3
Increase in net debt 18c (566.3) (401.5) (480.1)
The accompanying notes are an integral part of this consolidated
cash flow statement.
* US dollar equivalents are provided for reader convenience at the
June 29, 2001 exchange rate of (pound)1=$1.4105
British Sky Broadcasting Group plc
Notes
1. Acquisitions
British Interactive Broadcasting Holdings Limited ("BiB")
During 2001, the Group acquired 67.5% of the issued share capital
of BiB, 47.6% on May 9, 2001 and 19.9% on June 28, 2001, increasing
the Group's interest to 100% (2000: 32.5%). The amount of provisional
goodwill arising as a result of the acquisition is (pound)564.9
million, which is being amortized over a 7 year period on a
straight-line basis.
Deferred consideration, estimated at (pound)75 million, (pound)56
million and (pound)122 million will be payable to HSBC, Matsushita and
BT respectively, 18 months after completion, through the issue of new
BSkyB Ordinary Shares.
If the valuation of BiB, based on agreed criteria, is (pound)3
billion or greater, either at 30 or 36 months from the date of the
purchase agreement, a further estimated (pound)75 million, (pound)56
million and (pound)122 million will be payable to HSBC, Matsushita and
BT respectively through the issue of new BSkyB Ordinary Shares or loan
notes.
Sports Internet Group plc ("SIG")
100% of the issued share capital of SIG was acquired on July 12,
2000. The amount of goodwill arising as a result of the acquisition is
(pound)272.4 million, which is being amortized over a 7 year period on
a straight-line basis. SIG has now changed its name to Sports Internet
Group Limited.
WAP TV Limited ("WAP TV")
On May 29, 2001 the Group acquired a 5% minority interest in WAP
TV for total consideration of (pound)5.0 million, increasing the
Group's interest to 100%. The consideration comprises 169,375 new
BSkyB Ordinary Shares issued on May 29, 2001, and contingent
consideration to be satisfied by the issue of a further 169,375 new
BSkyB Ordinary Shares on June 30, 2002, and the issue of 338,755 new
BSkyB Ordinary Shares on September 30, 2003. The consideration is
contingent upon the vendors remaining continuously in the employment
of the Group from completion until the date the deferred consideration
is due. This has been recognized as it is considered probable that
these criteria will be fulfilled. Provisional goodwill of (pound)5.2
million arose on the acquisition, which is being amortized over a 7
year period on a straight-line basis.
2. Turnover
2001 2000
(pound)m (pound)m
(audited) (audited)
Direct-to-home subscribers 1,536.7 1,189.0
Cable and DTT subscribers 299.1 303.0
Advertising 270.5 242.3
Interactive* 93.0 4.6
Other 106.7 108.1
2,306.0 1,847.0
* Interactive income includes income from gaming, online
advertising, internet, e-commerce, interconnect, text services and
Sky Interactive set-top box subsidy recovery.
3. Operating expenses, net
Before
goodwill and Goodwill and
exceptional exceptional 2001
items items Total
(pound)m (pound)m (pound)m
(audited) (audited) (audited)
Programming(i) 1,133.8 - 1,133.8
Transmission and
related functions(i) 128.6 - 128.6
Marketing 378.1 - 378.1
Subscriber management 243.4 - 243.4
Administration 186.6 67.4 254.0
Gaming 75.3 - 75.3
2,145.8 67.4 2,213.2
Before
exceptional Exceptional 2000
items items Total
(pound)m (pound)m (pound)m
(audited) (audited) (audited)
Programming(i) 945.6 - 945.6
Transmission and
related functions(i) 105.2 41.0 146.2
Marketing 381.3 58.3 439.6
Subscriber management 199.9 5.7 205.6
Administration 129.7 - 129.7
Gaming - - -
1,761.7 105.0 1,866.7
(i) The amounts shown are net of(pound)55.1 million (2000:(pound)51.3
million) receivable from the disposal of programming rights not
acquired for use by the Group, and(pound)53.9 million
(2000:(pound)61.3 million) in respect of the provision to third
party broadcasters of spare transponder capacity.
In addition to the (pound)75.3 million gaming costs, (pound)47.8
million of other `Sky Interactive' operating costs are allocated
within the relevant operating expenses lines.
British Sky Broadcasting Group plc
Notes
4. Exceptional items
2001
Before Taxation After
taxation charge taxation
(pound)m (pound)m (pound)m
(audited) (audited) (audited)
Estimated cost of reorganization
of Sky Interactive 23.1 - 23.1
Estimated cost of termination
of analogue operations - - -
Estimated cost of transitioning
analogue customers to - - -
digital service
Estimated cost of Sky In Home
Service Limited reorganization - - -
Exceptional operating items 23.1 - 23.1
Loss on sale of fixed
asset investments - - -
Share of joint venture's
operating exceptional item 16.5 - 16.5
Share of joint venture's
loss on sale of fixed asset 69.5 - 69.5
investment
Amounts written off
fixed asset investments 38.6 - 38.6
Provision for loss on
disposal of subsidiary (see note 9) 10.0 - 10.0
Finance credit (see note 6) (2.7) 0.8 (1.9)
155.0 0.8 155.8
Taxation 2000 After
Before credit taxation
taxation as restated as restated
(pound)m (pound)m (pound)m
(audited) (audited) (audited)
Estimated cost of reorganization - - -
of Sky Interactive
Estimated cost of termination 41.0 (12.3) 28.7
of analogue operations
Estimated cost of transitioning 58.3 (17.5) 40.8
analogue customers to
digital service
Estimated cost of Sky In Home 5.7 (1.7) 4.0
Service Limited reorganization
Exceptional operating items 105.0 (31.5) 73.5
Loss on sale of fixed 1.4 - 1.4
asset investments
Share of joint venture's - - -
operating exceptional item
Share of joint venture's 14.0 - 14.0
loss on sale of fixed asset
investment
Amounts written off - - -
fixed asset investments
Provision for loss on - - -
disposal of subsidiary (see note 9)
Finance credit (see note 6) - - -
120.4 (31.5) 88.9
2001
Reorganization of Sky Interactive
In May 2001, the Group announced the consolidation of all of its
interactive and online activities within the 'Sky Interactive'
division. This division brings together BiB with the Group's
interactive properties including SIG. The costs of reorganization
within Sky Interactive are estimated at (pound)23.1 million and
principally comprise the cost of termination of certain contracts, the
closure of duplicate sites and a reduction in headcount. Of these
costs, (pound)7.0 million are included within fixed assets, (pound)4.0
million are included within other creditors and the remainder within
provisions.
Share of joint venture's operating exceptional item
In April 2001, BiB incurred exceptional operating costs of
(pound)16.5 million, principally comprising the cost of the write down
of the current platform. Of these costs, (pound)13.1 million are
included within fixed assets and the remainder within provisions.
Share of joint venture's loss on sale of fixed asset investment
On August 31, 2000, KirchPayTV GmbH & Co KGaA ("KirchPayTV")
disposed of their remaining 58 million holding of BSkyB shares. The
Group's share of the loss on disposal was (pound)69.5 million. The
loss is calculated as BSkyB's share of the difference between the
balance sheet value of the 58 million shares at (pound)15.21 per share
(based on the value of the shares at the date of acquisition of 24% of
KirchPayTV by BSkyB) and the net proceeds realised by KirchPayTV of
(pound)10.05 per share.
Amounts written off fixed asset investments
At June 30, 2001, (pound)38.6 million has been provided against
BSkyB's minority investments in new media companies. This consists of
(pound)40.0 million originally provided, reduced by (pound)1.4 million
to reflect the post year end disposal of the Group's investment in
Static 2358 Limited (see note 19). Of the (pound)38.6 million
provision, (pound)0.5 million relates to investments held by BiB.
Provision for loss on disposal of subsidiary
On July 11, 2001, BSkyB and Ladbrokes, the betting and gaming
division of Hilton Group plc, reached agreement to form a 50:50 joint
venture to develop and operate a fixed-odds and pools betting business
linked to Sky channels on Sky digital. BSkyB will contribute its
wholly-owned bookmaker, Surrey Sports, to the joint venture. When
Surrey Sports is transferred to the joint venture, BSkyB will adjust
existing goodwill on its balance sheet and a provision for this has
been made in the year to June 30, 2001.
Finance credit
An exceptional accrual was made in June 1999 in respect of the
mark to market of a floating-to-fixed interest rate swap over
(pound)100 million of the (pound)1,000 million revolving credit
facility ("RCF") which was no longer required when the RCF was
cancelled and replaced with a (pound)750 million RCF. The swap was
closed out in September 2000, and the remaining accrual of (pound)2.7
million was released.
2000
Termination of analogue operations
In May 2000, the Group committed to terminating its current
analogue service in June 2001, earlier than the previously announced
date of December 31, 2002. The costs of the termination were estimated
at (pound)41.0 million and principally comprise the cost of early
termination of analogue transponder leases and other costs to be
incurred to terminate the Group's analogue operations.
Transitioning analogue customers to digital service
On May 5, 1999, the Group announced a marketing promotion under
which it committed to transitioning its existing analogue subscribers
onto its digital service. The net costs associated with this process
were estimated at (pound)450 million, before taking account of tax
relief of (pound)135 million. This did not include subsidy costs
provided by BiB, 32.5% of whose funding was met by the Group.
Following the acquisition by the Group of a further 67.5% shareholding
in BiB and the consequent agreement for the Group to provide 100% of
BiB's funding, it became appropriate to increase the provision by
(pound)58.3 million in June 2000, principally to provide for the costs
of subsidizing the set-top boxes for the remaining analogue
subscribers.
British Sky Broadcasting Group plc
Notes
4. Exceptional items (continued)
Sky In Home Service Limited reorganization
In May 2000, the Group announced the reorganization of the Sky In
Home Service Limited distribution network at a cost of (pound)5.7
million. These costs principally comprise the costs of staff
redundancies, termination of building leases and fixed asset write
downs.
Loss on sale of fixed asset investments
During the prior year the Group reduced its holdings in Manchester
United PLC and Manchester City PLC so as to bring the holdings below
the 10% holding limit stipulated by the rules of the Premier League.
These disposals resulted in a total loss of (pound)1.4 million.
Share of joint venture's loss on sale of fixed asset investment
On June 7, 2000, KirchPayTV sold 20 million of its holding of
BSkyB shares. The Group's share of the loss on disposal was
(pound)14.0 million. The loss was calculated as 24% of the difference
between the balance sheet value of the 20 million shares at
(pound)15.21 per share (based on the value of the shares at the date
of acquisition of 24% of KirchPayTV by BSkyB) and the net proceeds
realized by KirchPayTV of (pound)12.30 per share.
Taxation credit
The exceptional tax credit of (pound)31.5 million is due to the
recognition of (pound)105.0 million of previously unrecognized
deferred tax asset, as a result of the adoption of FRS 19.
5. Share of operating results of joint ventures
Before
exceptional Exceptional 2001 2000
items items Total Total
(pound)m (pound)m (pound)m (pound)m
(audited) (audited) (audited) (audited)
Joint ventures:
KirchPayTV
(see note 11) 116.0 - 116.0 11.0
BiB (see note 11) 118.9 16.5 135.4 99.1
Programming joint
ventures, net 4.3 - 4.3 11.2
239.2 16.5 255.7 121.3
This relates to the Group's equity share of the operating results
of the Group's joint ventures.
The Group recognized 32.5% of the results of BiB up until November
2000. From this date, to May 9, 2001, 100% of BiB's losses were
recognized due to the arrangement dated July 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 (see note 1).
6. a) Interest receivable and similar income
2001 2000
(pound)m (pound)m
(audited) (audited)
Interest receivable on short-term deposits 3.8 7.3
Share of joint ventures' interest receivable 3.5 0.9
Interest receivable on funding to joint ventures 10.4 2.0
Other interest receivable 0.5 0.5
18.2 10.7
Exceptional finance credit (see note 4) 2.7 -
20.9 10.7
British Sky Broadcasting Group plc
Notes
6. b) Interest payable and similar charges
2001 2000
(pound)m (pound)m
(audited) (audited)
On bank loans, overdrafts and
other loans repayable within five
years, not by installments:
- (pound)300 million revolving credit facility 0.8 -
- (pound)750 million revolving credit facility 38.5 11.0
- (pound)1,000 million revolving credit facility - 0.2
US$650 million of 8.200% Guaranteed Notes
repayable in 2009 31.6 31.1
(pound)100 million of 7.750% Guaranteed Notes
repayable in 2009 7.8 7.7
US$600 million of 6.875% Guaranteed Notes
repayable in 2009 30.1 27.2
US$300 million of 7.300% Guaranteed Notes
repayable in 2006 15.5 15.8
Finance lease interest 0.9 0.9
Share of joint ventures' interest payable 27.8 8.3
Other interest payable and similar charges 0.3 0.4
153.3 102.6
7. Taxation
2000
2001 as restated
(pound)m (pound)m
(audited) (audited)
Tax charge (credit) on profit
before exceptional items:
Consortium relief payable - 25.7
Adjustment in respect of prior years - (6.0)
Share of joint ventures' tax credit - (27.3)
Deferred tax 23.3 (25.9)
23.3 (33.5)
Tax charge (credit) on exceptional items:
Deferred tax (see note 4) 0.8 (31.5)
24.1 (65.0)
The Group has adopted FRS 19, Deferred tax, and has restated prior
year figures accordingly.
Adoption has resulted in the recognition of deferred tax assets in
respect of losses and other timing differences incurred in prior
years, and corresponding restatement of the prior year results.
8. Loss per share
Before
goodwill and
exceptional Exceptional
items Goodwill Items
(audited) (audited) (audited)
Loss on ordinary activities (pound)237.4m (pound)145.4m (pound)155.8m
after taxation
Loss per share - basic and 12.9p 7.9p 8.4p
diluted
2001
After Before
goodwill and goodwill and
exceptional exceptional Goodwill
items items as restated
as restated
(audited) (audited) (audited)
Loss on ordinary activities
after taxation (pound)538.6m (pound)94.4m (pound)14.4m
Loss per share - basic and
diluted 29.2p 5.4p 0.8p
2000 After
goodwill
Exceptional and exceptional
Items Items
as restated as restated
(audited) (audited)
Loss on ordinary activities
after taxation (pound)88.9m (pound)197.7m
Loss per share - basic and
diluted 5.1p 11.3p
Basic and diluted loss per share represents the loss attributable
to the equity shareholders in each year divided by the weighted
average number of Ordinary Shares in issue during the year of
1,847,057,433 (2000: 1,744,379,069).
Loss per share is shown calculated by reference to losses both
before and after goodwill and exceptional items and related tax, since
the Directors consider that this gives a useful additional indication
of underlying performance.
British Sky Broadcasting Group plc
Notes
9. Intangible fixed assets
The movement in the year was as follows:
Goodwill Other Total
(pound)m (pound)m (pound)m
(audited) (audited) (audited)
Net book value at the
beginning of the year - - -
Additions and acquisitions, net 842.6 1.0 843.6
Amortization (44.2) (0.1) (44.3)
Provision for loss on
disposal of subsidiary (10.0) - (10.0)
Net book value at the end of year 788.4 0.9 789.3
Goodwill of (pound)272.4 million arising on the acquisition of SIG
(see note 1) is being amortized over a period of 7 years on a
straight-line basis. Provisional goodwill of (pound)564.9 million
arising on the acquisition of BiB (see note 1) is being amortized over
a period of 7 years on a straight-line basis. Provisional goodwill of
(pound)5.2 million arising on the acquisition of WAP TV (see note 1)
is being amortized over a 7 year period on a straight-line basis.
The provision for loss on disposal of a subsidiary comprises the
estimated net loss on disposal of the Group's interest in Surrey
Sports Group, which has been provided for as at June 30, 2001 (see
note 4).
10. Tangible fixed assets
The movement in the year was as follows:
Freehold land Short leasehold Equipment, 2001
and buildings improvements fixtures Total
and fittings
(pound)m (pound)m (pound)m (pound)m
(audited) (audited) (audited) (audited)
Net book value at the
beginning of the year 22.9 39.5 162.5 224.9
Additions and
acquisitions, net 3.0 5.0 153.6 161.6
Depreciation (1.0) (3.7) (66.4) (71.1)
Net book value at the
end of year 24.9 40.8 249.7 315.4
11. Investments
2001 2000
(pound)m (pound)m
(audited) (audited)
Joint ventures:
- KirchPayTV 1,142.1 1,479.9
- BiB - 17.7
- Programming joint ventures 21.6 14.7
Own shares 19.1 27.5
Other investments 123.1 120.8
1,305.9 1,660.6
Goodwill of (pound)1,386.5 million on the investment in KirchPayTV
is being amortized over a period of 7 years on a straight-line basis.
The goodwill was reduced by (pound)110.3 million in September 2000
following the deemed disposal resulting from additional third party
investment in KirchPayTV.
The goodwill has, up to March 31, 2001, been amortized over a
useful economic life of 20 years. During the year, the Group acquired
SIG and BiB (see note 1), and, for both of these acquisitions, a life
of 7 years was chosen as the relevant amortization period. As at April
1, 2001, it was considered appropriate to revise KirchPayTV's useful
economic life to 7 years in line with the lives of those entities.
KirchPayTV's results included in the Group's results for the year
to 30 June 2001 have not met expectations, and KirchPayTV's management
have formulated plans to improve the performance of the business, both
through increasing revenues and through reducing operating costs.
KirchPayTV's management are currently assessing the impact of the
implementation of these changes; when reviewed under FRS 11, the
initial assessment shows that the Group's investment is not impaired
as at 30 June 2001.
British Sky Broadcasting Group plc
Notes
12. Stocks
2001 2000
(pound)m (pound)m
(audited) (audited)
Television program rights 364.6 313.1
Digital set-top boxes 55.4 42.9
Raw materials and consumables 4.1 2.2
424.1 358.2
At least 71% (2000: 77%) of the existing television program rights
at June 30, 2001 will be amortized within one year.
13. Debtors
2001 2000
as restated
(pound)m (pound)m
(audited) (audited)
Debtors: Amounts falling
due within one year
Trade debtors 231.7 125.0
Amounts owed by joint ventures 11.2 30.9
Amounts owed by other related parties 1.9 2.3
Other debtors 29.0 5.9
Prepaid program rights 51.4 41.3
Prepaid transponder rentals 25.1 30.8
Deferred tax 68.9 32.0
Prepaid media rights 3.0 3.4
Other prepayments and accrued income 71.2 61.9
493.4 333.5
Debtors: Amounts falling
due after more than one year
Amounts owed by joint ventures - 6.7
Prepaid program rights 78.2 86.4
Prepaid transponder rentals 61.8 71.2
Advance corporation tax 85.3 85.3
Deferred tax 75.0 136.0
Prepaid media rights 11.9 9.4
Other payments and accrued income 12.4 26.1
324.6 421.1
14. Creditors: Amounts falling due within one year
2001 2000
(pound)m (pound)m
(audited) (audited)
Short-term borrowings - 13.7
Bank overdrafts 2.1 0.1
Obligations under finance leases 2.1 13.8
Other
Trade creditors 457.4 349.2
Amounts due to joint ventures - 25.0
Amounts due to related parties 18.3 39.3
UK corporation tax 4.7 4.7
VAT 62.3 36.8
Social security and PAYE 6.2 5.4
Other creditors 8.4 22.6
Accruals and deferred income 431.3 325.8
Government grants 0.1 0.1
988.7 808.9
990.8 822.7
Included within trade creditors are(pound)291.9 million
(2000:(pound)227.5 million) of US dollar-denominated program
creditors. At least 90% (2000: 90%) of these were covered by forward
rate currency contracts. British Sky Broadcasting Group plc
Notes
15. Creditors: Amounts falling due after more than one year
2001 2000
(pound)m (pound)m
(audited) (audited)
Long-term borrowings
(pound)750 million revolving
credit facility 690.0 335.0
AUS$1 million facility - 0.4
US$650 million of 8.200% Guaranteed Notes
repayable in 2009 412.5 412.5
(pound)100 million of 7.750%
Guaranteed Notes repayable in 2009 100.0 100.0
US$600 million of 6.875% Guaranteed Notes
repayable in 2009 367.2 367.2
US$300 million of 7.300% Guaranteed Notes
repayable in 2006 189.2 189.2
Obligations under finance leases 8.9 8.1
Other borrowings 0.2 -
1,768.0 1,412.4
Other
Accruals and deferred income 13.1 21.1
Government grants 0.8 0.9
13.9 22.0
1,781.9 1,434.4
In March 2001, a new (pound)300 million revolving credit facility
("RCF") was entered into, which is in addition to the existing
(pound)750 million RCF. The (pound)300 million facility is repayable
in full on June 29, 2004 and bears interest at rates between 0.50% and
1.75% per annum above LIBOR, depending on the Group's credit rating.
This facility was undrawn at June 30, 2001.
16. Provisions for liabilities and charges
Sky In Home
Analogue Service Limited Sky Interactive
termination Transition reorganization reorganization
provision provision provision provision
(pound)m (pound)m (pound)m (pound)m
(audited) (audited) (audited) (audited)
At beginning
of year 30.7 192.9 1.9 -
Charged to profit
and loss account - - - 12.1
Subsidiary acquired - - - 3.4
Utilized in year (22.5) (174.3) (1.5) -
At end of year 8.2 18.6 0.4 15.5
Provision for
closure of
Sky Pictures 2001
Total
(pound)m (pound)m
(audited) (audited)
At beginning of year - 225.5
Charged to profit
and loss account 0.3 12.4
Subsidiary acquired - 3.4
Utilized in year - (198.3)
At end of year 0.3 43.0
The analogue termination provision principally comprises the cost
of early termination of analogue transponder leases and various other
costs to be incurred to terminate the Group's analogue operations (see
note 4).
The transition provision utilized during the year of (pound)174.3
million (2000: (pound)270.8 million) is net of (pound)21.2 million
(2000: (pound)50.1 million) of installation income received from
subscribers. The transition provision comprises the cost of the
set-top box, installation costs, BiB subsidy costs and various other
costs to be incurred to enable a subscriber to use the digital
service, less any upfront income received from the subscriber. As at
June 30, 2001 the Group believes that the transition provision
reflects the estimated cost of transitioning the remaining analogue
subscribers.
The Sky In Home Service Limited reorganization provision
principally comprised the costs of staff redundancies.
The Sky Interactive reorganization provision relates to costs
associated with the reorganization and consolidation of all
interactive and online activities within the division `Sky
Interactive.' The post acquisition provision principally comprises the
cost of termination of certain contracts, the closure of duplicate
sites and a reduction in head count.
The Sky Pictures provision principally comprises the cost of a
reduction in headcount.
British Sky Broadcasting Group plc
Notes
17. Reconciliation of movement in shareholders' funds
Movement in shareholders' funds includes all movements in
reserves.
Share Share Shares to
capital premium be issued
(pound)m (pound)m (pound)m
(audited) (audited) (audited)
As at July 1, 1999
- as restated 863.0 703.0 -
Issue of share capital 49.9 1,514.6 -
Share issue costs - (7.7) -
Loss for the financial year
- as restated - - -
Translation differences
on foreign currency - - -
net investment
As at July 1, 2000 912.9 2,209.9 -
Issue of share capital 31.5 171.2 -
Shares to be issued - - 256.9
Share issue costs - (3.5) -
Loss for the financial year - - -
Net loss on deemed disposals - - -
Transfer to merger reserve - - -
Translation differences
on foreign currency - - -
net investment
As at June 30, 2001 944.4 2,377.6 256.9
Profit and Total equity
loss shareholders'
Merger account funds
reserve as restated as restated
(pound)m (pound)m (pound)m
(audited) (audited) (audited)
As at July 1, 1999
- as restated - (2,114.2) (548.2)
Issue of share capital - (18.1) 1,546.4
Share issue costs - - (7.7)
Loss for the financial year
- as restated - (197.7) (197.7)
Translation differences
on foreign currency - 4.1 4.1
net investment
As at July 1, 2000 - (2,325.9) 796.9
Issue of share capital 378.1 (9.1) 571.7
Shares to be issued - - 256.9
Share issue costs - - (3.5)
Loss for the financial year - (538.6) (538.6)
Net loss on deemed disposals - (20.7) (20.7)
Transfer to merger reserve (37.3) 37.3 -
Translation differences
on foreign currency - (2.1) (2.1)
net investment
As at June 30, 2001 340.8 (2,859.1) 1,060.6
At June 30, 2001, the cumulative goodwill written off directly to
reserves amounted to(pound)523.8 million (2000:(pound)523.8 million).
The cumulative amortized goodwill included in reserves amounted
to(pound)159.8 million (2000:(pound)14.4 million).
A merger reserve has been created in relation to 21.6 million
shares, issued during the period as consideration for the acquisition
of 100% of SIG and in relation to 19.1 million shares issued during
the period as part consideration for the acquisition of the remaining
19.9% of BiB (see note 1).
In May and June 2001, the Company issued a total of 39,674,765
shares, with a total value of (pound)290.9 million, which were used as
consideration for respect of the acquisition of the remaining 67.5%
interest in BiB (see note 1). Shares with a total value of
(pound)253.2 million will be issued as deferred consideration.
In May 2001, the Company issued 169,375 shares which were used as
consideration in respect of the acquisition of the remaining 5%
minority interest in WAP TV Limited (see note 1). A further 169,375
and 338,755 new BSkyB Ordinary Shares comprise the contingent
consideration of (pound)3.7 million, to be issued on June 30, 2002 and
September 30, 2003 respectively.
During the year the Company issued shares with a market value of
(pound)15.6 million (2000: (pound)29.9 million) in respect of the
exercise of options awarded under various share option plans, with
(pound)6.5 million (2000: (pound)11.8 million) received from
employees.
18. a) Reconciliation of operating profit to operating cash flows
Before
goodwill and Goodwill and
exceptional exceptional 2001
items items Total
(pound)m (pound)m (pound)m
(audited) (audited) (audited)
Operating profit (loss) 160.2 (67.4) 92.8
Depreciation (see note 10) 64.1 7.0 71.1
Goodwill amortization (see note 9) - 44.3 44.3
Amortization of government grants (0.1) - (0.1)
Deferred revenue released (4.2) - (4.2)
(Increase) decrease in debtors (23.4) - (23.4)
Increase in creditors 64.1 - 64.1
(Increase) decrease in stock (43.1) - (43.1)
Provision provided (utilized), net 0.3 (162.9) (162.6)
Net cash inflow (outflow)
from operating activities 217.9 (179.0) 38.9
Before
exceptional Exceptional 2000
items items Total
(pound)m (pound)m (pound)m
(audited) (audited) (audited)
Operating profit (loss) 85.3 (105.0) (19.7)
Depreciation (see note 10) 48.9 3.1 52.0
Goodwill amortization (see note 9) - - -
Amortization of government grants (1.3) - (1.3)
Deferred revenue released (2.2) - (2.2)
(Increase) decrease in debtors (177.7) 6.4 (171.3)
Increase in creditors 159.3 - 159.3
(Increase) decrease in stock (73.3) 3.9 (69.4)
Provision provided (utilized), net - (179.9) (179.9)
Net cash inflow (outflow)
from operating activities 39.0 (271.5) (232.5)
British Sky Broadcasting Group plc
Notes
18. b) Analysis of changes in net debt
As at July 1 As at June 30
2000 Cashflow 2001
(pound)m (pound)m (pound)m
(audited) (audited) (audited)
Overnight deposits 47.1 44.8 91.9
Other cash 79.1 (17.4) 61.7
Bank overdrafts (13.7) 13.7 -
112.5 41.1 153.6
Short-term deposits 155.0 (85.0) 70.0
Cash at bank and in
hand less bank
overdrafts 267.5 (43.9) 223.6
Debt due after more
than one year (1,404.3) (354.8) (1,759.1)
Finance leases (8.2) (2.8) (11.0)
Total debt (1,412.5) (357.6) (1,770.1)
Total net debt (1,145.0) (401.5) (1,546.5)
c) Reconciliation of net cash flow to movement in net debt
2001 2000
(pound)m (pound)m
Note (audited) (audited)
Increase in cash and
bank overdrafts 41.1 62.3
(Decrease) increase in
short-term deposits (85.0) 155.0
Cash inflow resulting from
increase in debt and
lease financing (357.6) (697.4)
Increase in net debt (401.5) (480.1)
Net debt at beginning of year (1,145.0) (664.9)
Net debt at end of year 18b (1,546.5) (1,145.0)
d) Major non-cash transactions 2001 Acquisition of 67.5% of BiB During 2001, the Group acquired 67.5% of BiB (see note 1), 47.6% on May 9, 2001 and 19.9% on June 28, 2001, increasing the Group's interest to 100% (2000: 32.5%). The consideration was satisfied by the issue to HSBC HSBC Hongkong and Shanghai Banking Corporation HSBC Humane Society of Broward County (Florida) HSBC Humane Society of Bay County (Bay County, Michigan) , Matsushita and BT of 39,674,765 new BSkyB shares, with a fair value of (pound)290.9 million and deferred consideration of new BSkyB shares, with a fair value of (pound)253.2 million. Acquisition of 100% of SIG In July 2000, the Group acquired 100% of SIG (see note 1). The consideration was satisfied by the issue to SIG shareholders of 21,633,099 new BSkyB shares, with a fair value of (pound)267.3 milllion. Acquisition of 5% of WAP (1) (Wireless Access Point) See access point. (2) (Wireless Application Protocol) A standard for providing cellular phones, pagers and other handheld devices with secure access to e-mail and text-based Web pages. TV Limited In May 2001, the Group acquired the remaining 5% minority interest in WAP TV Limited. The consideration was satisfied by the issue of 169,375 new BSkyB shares, with a fair value of (pound)1.3 million and contingent Fortuitous; dependent upon the possible occurrence of a future event, the existence of which is not assured. The word contingent denotes that there is no present interest or right but only a conditional one which will become effective upon the happening of the consideration of 508,130 new BSkyB shares with a fair value of (pound)3.7 million. 2000 Acquisition of 24% of KirchPayTV In April 2000, the Group acquired 24% of KirchPayTV. Part of the consideration was satisfied by the issue to KirchPayTV of 78,019,788 new BSkyB shares, with a fair value of (pound)1,186.7 million. British Sky Broadcasting Group plc Notes 19. Post balance sheet events Surrey Sports Plc On July 11, 2001, BSkyB and Ladbrokes, the betting and gaming division of Hilton Hil·ton , Conrad Nicholson 1887-1979. American hotel-chain organizer who acquired hotels in many American cities and in 1946 founded the Hilton Hotel Corporation. Group Plc, reached agreement to form a 50:50 joint venture to develop and operate a fixed-odds and pools betting business linked to Sky channels on Sky digital. BSkyB will contribute its wholly-owned bookmaker Surrey Sports, to the joint venture. When Surrey Sports is transferred to the joint venture, BSkyB will adjust existing goodwill on its balance sheet and a provision for this has been made in the year to June 30, 2001. Static 2358 Limited On June 13, 2001, the Group entered into binding agreements for the sale of its unlisted investment in Static 2358 Limited for total consideration of (pound)3.7 million comprising a mixture of cash and shares in OpenTV  This article or section is written like an .Please help [ rewrite this article] from a neutral point of view. Mark blatant advertising for , using . . The disposal was completed on July 2, 2001. As a result, the amount written off this fixed asset investment was no longer required, and the total amount written off fixed asset investments was reduced by (pound)1.4 million (see note 4). 20. EBITDA EBITDA (Earnings before interest, tax, depreciation and amortization) is calculated as operating profit before depreciation and amortization of goodwill and intangible fixed assets. This financial information does not constitute statutory accounts for the purpose of Section 240 of the Companies Act 1985. The preliminary profits statements for the year ended June 30, 2001 have been extracted from the statutory accounts of British Sky Broadcasting Group plc for the year ended June 30, 2001, which have not yet been filed with the Registrar of Companies The introduction to this article provides insufficient context for those unfamiliar with the subject matter. Please help [ improve the introduction] to meet Wikipedia's layout standards. You can discuss the issue on the talk page. , but on which the auditors AUDITORS, practice. Persons lawfully appointed to examine and digest accounts referred to them, take down the evidence in writing, which may be lawfully offered in relation to such accounts, and prepare materials on which a decree or judgment may be made; and to report the whole, together gave an unqualified report on July 24, 2001. The preliminary announcement was approved by the Board of Directors on July 24, 2001. The profit statements for the three months ended June 30, 2001 and June 30, 2000 are unaudited. The profit statement for the year ended June 30, 2000 has been extracted from the statutory accounts of British Sky Broadcasting Group plc for the year ended June 30, 2001, adjusted for the introduction of FRS FRS abbr. Fellow of the Royal Society FRS, n “flexed rotated side-bent,” an osteopathic abbreviation used to describe vertebral position in cases of spinal dysfunction. 19, which have been filed with the Registrar of Companies, on which the auditors gave an unqualified report. |
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