British Sky Broadcasting Group plc Results for the Year Ended June 30, 2002; Sky Breaks Through 6 Million DTH Subscribers.Business Editors LONDON--(BUSINESS WIRE)--July 31, 2002 British Sky Broadcasting British Sky Broadcasting (BSkyB — formerly two companies, Sky Television and BSB) is a company that operates Sky Digital, a subscription television service in the UK and the Republic of Ireland. It produces TV content, and owns several TV channels. plc (NYSE NYSE See: New York Stock Exchange : BSY BSY Busy BSY British School of Yoga BSY Bit Sync BSY Busy Line ), the UK-based pay-television broadcasting group, today announced its results for the year ended June June: see month. 30, 2002. - Net DTH subscriber growth of 214,000 in quarter to 6.1 million - ARPU up 11% to (pound)347 ($533) - Churn stable at 10.5% - Revenue increases by 20% to (pound)2,776 million ($4,261 million) - Operating profit before goodwill and exceptional items increases by 20% to (pound)192 million ($294 million) - Net debt falls by (pound)165 million ($253 million) in the quarter to (pound)1,528 million ($2,345 million) Tony Ball, Chief Executive of British Sky Broadcasting Group plc, said: "With 6.1 million subscribers and 11% growth in 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. to (pound)347 ($533), we are on track to meet our targets of 7 million subscribers and (pound)400 ($614) 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. . This has generated 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 and positive free cashflow. We will continue to focus on profitable growth in the coming year." 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 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. (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 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 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. 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 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. (for subscribing subscribing - subscribe institutions only). OPERATING REVIEW At June 30, 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. ) 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 6,101,000. This represents a net increase of 214,000 in the three months to June 30, 2002 ("the quarter") and an increase of 648,000 in the year to June 30, 2002 ("the year"). Total UK and Ireland subscribers to one or more of Sky's channels increased by 148,000 to 10.2 million in the year as the increase in the number of DTH and cable subscribers was greater than the loss of DTT DTT Deloitte Touche Tohmatsu (Deloitte & Touch Global Operations) DTT Dithiothreitol (cytology reagent) DTT Digital Terrestrial Television DTT Discrete Trial Training subscribers from the closure of ITV (1) See interactive TV. (2) (iTV) The code name for Apple's video media hub (see Apple TV). Digital. Digital churn churn: see butter. for the year stands at 10.5%. The recent reduction in churn (to 10.4% in the quarter) is particularly encouraging now that over 75% of the DTH subscriber base are out of their initial 12 month contract period. 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) in the quarter was (pound)347 ($533), an increase of 11% over the three months ended June 30, 2001. ARPU has been calculated excluding 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 revenues from the Lewis-Tyson boxing match to reflect 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. " nature of this event. Including these revenues, ARPU was (pound)352 ($540). At June 30, 2002, there were 54,000 subscribers to the Extra Digibox A digibox can refer to either:
adj. 1. Almost exact or correct: the approximate time of the accident. 2. 40% of Sky+ subscribers are also Extra Digibox subscribers). Sky digital continues to offer the widest choice in multi-channel See multichannel. television. There are currently over 370 channels available via digital satellite, including 146 channels retailed by Sky, 69 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. TV channels, 60 radio channels and 83 pay-per-view channels. Sky has concluded an agreement with BT Retail's consumer division to offer Sky subscribers BT's access-only broadband broadband Term describing the radiation from a source that produces a broad, continuous spectrum of frequencies (contrasted with a laser, which produces a single frequency or very narrow range of frequencies). ADSL See DSL. ADSL - Asymmetric Digital Subscriber Line product on special terms. This agreement will ensure that Sky subscribers have access to a highly competitive offering as demand for broadband internet access Broadband Internet access, often shortened to just "broadband", is high speed Internet access—typically contrasted with dial-up access over modem. Dial-up modems are generally only capable of a maximum bitrate of 56 kbit/s (kilobits per second) and require the full use of a develops. Programming The viewing share of Sky channels across all UK television homes grew to 6.15% for the year, compared to 5.76% last year. Sky One confirmed its position as the UK's most popular cable and satellite channel. Its share of viewing across all UK television homes grew to 1.9% in the year and its most successful series, Buffy buffy (buf´e) of the color buff; light yellowish pink to yellow, including orange-yellow to yellow-brown. the Vampire vampire, in folklore, animated corpse that sucks the blood of humans. Belief in vampires has existed from the earliest times and has given rise to an amalgam of legends and superstitions. Slayer and The Simpsons, now regularly reach audiences of over 1 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. . Sky News continues to set the benchmark A performance test of hardware and/or software. There are various programs that very accurately test the raw power of a single machine, the interaction in a single client/server system (one server/multiple clients) and the transactions per second in a transaction processing system. for 24-hour news channels. Sky News Active, which has successfully pioneered interactive voting, now offers live chat for key events and breaking news. Sky Sports Premiership audiences increased season-on-season and the title decider between Manchester Manchester, city, England Manchester (măn`chəstər, –chĕs'tər), city and metropolitan district (1991 pop. 397,400), NW England, on the Irwell, Medlock, Irk, and Tib rivers. United and Arsenal This article is about armaments factories. For the London football club, see Arsenal F.C.. For other uses, see Arsenal (disambiguation). An arsenal is an establishment for the construction, repair, storage and issue of weapons and ammunition. was watched by the largest 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. audience for three years. The new season will see the return of the Nationwide League and Worthington Cup Worthington Cup may refer to:
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. will be shown exclusively live on Sky Sports in September September: see month. . Postponed from last year, the event will be covered with new-look interactivity offering eight different views of the tournament. Sky Movies shows more than 500 different films per week and around 90% of films from the UK's box office top 100. Recent hits on Sky Movies have included the blockbusters Cast-Away, Traffic, Crouching Tiger Hidden Dragon dragon, mythical beast usually represented as a huge, winged, fire-breathing reptile. For centuries the dragon has been prominent in the folklore of many peoples; thus, its physical characteristics vary greatly and include combinations of numerous animals. and Charlie's Angels. Upcoming highlights include Hannibal Hannibal, Carthaginian general Hannibal (hăn`əbəl), b. 247 B.C., d. 183 or 182 B.C. Carthaginian general, an implacable and formidable enemy of Rome. , The Mexican Mexican named after or originating in Mexico. Mexican axolotl see ambystomamexicanum. Mexican beaded lizard (Heloderma horridum and Chocolat Chocolat is a 1999 novel by Joanne Harris. It tells the story of Vianne Rocher, a young mother, who arrives at a fictional insular French village of Lansquenet-sous-Tannes with her six-year-old daughter, Anouk. . Sky Box Office has recently hosted its first ever Bollywood Bollywood Indian moviemaking industry that began in Bombay (now Mumbai) in the 1930s and developed into an enormous film empire. Bombay Talkies, launched in 1934 by Himansu Rai, spearheaded the growth of Indian cinema. season, featuring four Bombay Bombay (bŏmbā`), former state, W central India, on the Arabian Sea. The state contained within its borders the former Portuguese colonies of Goa and Daman and Diu. Historical remains exist from the period (320–184 B.C. blockbusters just weeks after their cinematic release. Upcoming highlights on Sky Box Office include Planet of The Apes, A Knights Tale, Moulin Rouge Moulin Rouge (French for Red Mill or windmill) is a traditional cabaret, built in 1889 by Joseph Oller, who already owned the Paris Olympia. , Rush Hour 2, Scary scar·y adj. scar·i·er, scar·i·est 1. Causing fright or alarm. 2. Easily scared; very timid. scar Movie 2 and Swordfish swordfish, large food and game fish, Xiphias gladius, of the warmer Atlantic and Pacific waters, related to the sailfish. It is named for its sharp, broad, elongated upper jaw, which it uses to flail and pierce its prey of smaller fish, rising beneath a school . Sky Movies Active has just celebrated a successful first year, offering previews, reviews, competitions, latest movie news and the ability to purchase cinema tickets. The usage of interactive services continues to grow. Sky's dedicated interactive TV games service, 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. , recently added classic Atari games Atari Games Corporation was an American producer of arcade games, and originally part of Atari Inc. History When, in 1984, Warner Communications sold the Atari Consumer division of Atari Inc. as well as dedicated World Cup games and quizzes to its line-up line-up Noun 1. people or things assembled for a particular purpose: Christmas TV line-up 2. , helping it to grow its reach to over 4 million individuals in the quarter. New services from the BBC BBC in full British Broadcasting Corp. Publicly financed broadcasting system in Britain. A private company at its founding in 1922, it was replaced by a public corporation under royal charter in 1927. , Discovery, E4 and MTV MTV in full Music Television U.S. cable television network, established in 1980 to present videos of musicians and singers performing new rock music. MTV won a wide following among rock-music fans worldwide and greatly affected the popular-music business. have continued to extend the number and range of interactive services linked to programming, contributing to the growth in usage-based 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. telephony Meaning "sound over distance," it refers to electronically transmitting the human voice. In the beginning, telephony dealt only with analog signals in the circuit-switched networks of the telephone companies. revenues on the satellite platform. In the recent Big Brother 3 series, over 5 million votes were cast using the interactive service on Sky digital. On July July: see month. 4, 2002, the ITC ITC (Brit) n abbr (= Independent Television Commission) → Fernseh-Aufsichtsgremium ITC n abbr (BRIT) (= Independent Television Commission) → announced that it had made a conditional Subject to change; dependent upon or granted based on the occurrence of a future, uncertain event. A conditional payment is the payment of a debt or obligation contingent upon the performance of a certain specified act. decision to award the multiplex See multiplexing. licenses previously held by ITV Digital to the BBC and Crown Castle, for a new 12 year term. As part of an agreement with the BBC and Crown Castle, Sky intends initially to supply three of its channels, Sky News, Sky Sports News Sky Sports News (SSN) is a 24-hour sports news channel in the United Kingdom. It is run by BSkyB whose sports channels include Sky Sports 1, 2, 3, and Xtra, as well as Sky Sports HD1 and HD2. and Sky Travel, free-to-air to the DTT platform. FINANCIAL REVIEW The continued growth in DTH subscribers over the past 12 months has led to significant year-on-year growth in revenues and operating profit before goodwill and exceptional items, despite the closure of ITV Digital and a challenging advertising market. Revenues increased by (pound)470 million ($721 million) to (pound)2,776 million ($4,261 million), up 20% on the prior year. Costs increased by (pound)438 million ($672 million) to (pound)2,584 million ($3,967 million) before goodwill and exceptional items as the Group continued to invest in programming and acquiring new subscribers. As a result, operating profit before goodwill and exceptional items increased to (pound)192 million ($294 million), an improvement of 20% on the prior year. After goodwill and exceptional items (principally relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc KirchPayTV), the loss before tax was (pound)1,276 million ($1,959 million). The loss after tax was (pound)1,383 million ($2,122 million), resulting in a loss of 73 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, (112 cents) per share. Sky generated positive free cashflow in the quarter and in the year. Since the peak level of net debt of (pound)1,833 million ($2,813 million) was reached on December December: see month. 31, 2001, net debt has been reduced by (pound)305 million ($468 million) to (pound)1,528 million ($2,345 million). Revenue Total revenue grew by 20% to (pound)2,776 million ($4,261 million), with faster growth in DTH and interactive revenue being held back by falls in advertising and wholesale revenue. DTH revenue, which now accounts for 69% of total turnover, increased by 26% to (pound)1,929 million ($2,961 million), reflecting a 14% increase in the average number of DTH subscribers and a 10% increase in core ARPU to (pound)333 ($511) (excluding pay-per-view revenues from the Lewis-Tyson boxing match to reflect the "one-off" nature of this event). Wholesale revenue from cable and DTT subscribers fell by 7% to (pound)279 million ($429 million). An increase in the average number of cable subscribers taking Sky's basic channels Sky News and Sky One was offset by the continued decline in the average number of premium channels taken by cable subscribers. DTT revenues were level compared to the prior year, as no revenues were received after April 30, 2002 in respect of ITV Digital, following the termination The point where a line, channel or circuit ends. See SCSI termination and hybrid. of ITV Digital's DTT operations on that date. In addition, 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 third quarter results, Sky made an exceptional operating provision of (pound)22 million ($34 million), in respect of unprovided un·pro·vid·ed adj. Not supplied, furnished, or equipped. un  pro·vid balances owed
to it by ITV Digital. Through its membership of the Creditors'
Committee creditors' committeeA group of lenders who seek to protect their interests in connection with a borrower that experiences financial difficulties. , Sky is seeking to maximize In a graphical environment, to enlarge a window to the full size of the screen. See Win Maximize windows. recovery of funds on behalf of all creditors of ITV Digital. Advertising revenue decreased by 7% to (pound)251 million ($385 million), reflecting the downturn Downturn The transition point between a rising, expanding economy to a falling, contracting one. downturn A decline in security prices or economic activity following a period of rising or stable prices or activity. in the UK advertising market. Interactive revenues increased by 100% to (pound)186 million ($285 million) in total, of which (pound)95 million ($146 million) related to betting via interactive television, the internet and the telephone. 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, Sky's wholly-owned bookmaker, now has 93,000 interactive TV betting registrations and receives over 60,000 bets per week on average. Sky Active and 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 revenues comprised the majority of the remaining (pound)91 million ($139 million). Interactive ARPU (which includes only the net margin from betting) for the quarter was (pound)14 ($21), an increase of 29% on last year. Programming costs Programming costs increased by (pound)305 million ($468 million) to (pound)1,439 million ($2,209 million), principally as a result of the new 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 contract and subscriber-related increases in movie and third party channel costs. Sports costs, which represent 46% of total programming costs, increased by (pound)246 million ($378 million) to (pound)663 million ($1,018 million), driven by an increase of (pound)192 million ($295 million) in football costs (mainly the new FAPL deal this year and the introduction of Premier League pay per view matches) together with the costs of Rugby Union rugby union Noun a form of rugby played between teams of 15 players and Cricket Internationals. An increase in movie costs of 7% ((pound)24 million) ($37 million) to (pound)360 million ($553 million) reflected the increase in the average number of movie subscribers, an increased proportion of "hit" titles and an increase in the number of buys of Sky Box Office movies. Entertainment programming costs decreased by 5% ((pound)5 million) ($8 million) to (pound)85 million ($130 million) principally as a result of savings in commissioned programming for Sky One and the rationalization rationalization, in psychology: see defense mechanism. of certain channels. DTH distribution fees paid to third party channels rose by 16% ((pound)41 million) ($63 million) to (pound)297 million ($456 million), due to the increased number of subscribers and new channels joining the platform. Other operating costs operating costs npl → gastos mpl operacionales Marketing costs increased by (pound)38 million ($58 million) (10%) to (pound)416 million ($639 million), mainly due to the consolidation for the full year of BiB's subsidy of the set top box (resulting in an increase of (pound)49 million ($75 million) over the prior year). This was partly offset by reductions in above-the-line advertising spend and commissions paid, as more sales were made directly rather than through retail outlets retail outlet n → punto de venta retail outlet n → point m de vente retail outlet retail n → . On a like-for-like basis, the acquisition cost per subscriber has fallen from approximately (pound)250 ($384) for the prior year to (pound)234 ($359). This reduction was primarily achieved through a combination of lower set top box costs and increasing use of lower cost direct routes to market. Subscriber management costs (including subscriber handling, installation costs and the cost of Sky+ and Extra Digiboxes sold to subscribers) increased by 20% to (pound)291 million ($447 million), driven by the increased costs of servicing a higher number of digital subscribers and by the introduction of new products such as Sky + and Extra digibox. Partly offsetting this, call center headcount head count or head·count n. 1. The act of counting people in a particular group. 2. The number of people counted in this way. Noun 1. and call volumes are down, reflecting improvements in Sky's billing and other customer support systems and subscribers' increasing familiarity with Sky products. Transmission and related costs before exceptional items rose by (pound)18 million ($28 million) to (pound)147 million ($225 million), mainly due to the inclusion of BiB transmission and related costs and the usage of an increased number of other transponders, offset by savings from the termination of the 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". service in September 2001. Administration costs before goodwill and exceptional items increased by (pound)16 million ($25 million) to (pound)203 million ($312 million), following the consolidation of BiB costs for a full year and increases in other central costs and depreciation. Gaming costs increased by (pound)13 million ($20 million) to (pound)88 million ($135 million) due to increased numbers of interactive TV, internet and telephone bets placed following the introduction of interactive betting in December 2000 and the relaunch Relaunch can refer to several things:
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 22% from (pound)224 million ($344 million) to (pound)273 million ($419 million). Goodwill Goodwill amortization included within operating profit increased to (pound)118 million ($182 million) as a result of the inclusion of a full year's charge in respect of BiB. As disclosed in the third quarter results announcement, joint ventures' goodwill amortization of (pound)1,070 million ($1,642 million) shown below operating profit relates to the amortization and subsequent impairment Impairment 1. A reduction in a company's stated capital. 2. The total capital that is less than the par value of the company's capital stock. Notes: 1. This is usually reduced because of poorly estimated losses or gains. 2. of the goodwill which arose on the acquisition of KirchPayTV. Joint ventures The Group's share of net operating losses Net operating losses Losses that a firm can take advantage of to reduce taxes. from joint ventures before exceptional items decreased from (pound)239 million ($367 million) to (pound)76 million ($118 million). The Group's share of KirchPayTV's operating losses operating loss The excess of operating expenses over revenue. As with operating income, operating losses exclude revenues and expenses from operations that are not considered a regular part of the business. Also called deficit. Compare operating income. decreased from (pound)116 million ($178 million) to (pound)70 million ($107 million), as KirchPayTV's losses were only recognized until February February: see month. 8, 2002. As disclosed in the interim and third quarter results, the Group has written down the carrying value Carrying Value Also know as "book value," it is a company's total assets minus intangible assets and liabilities, such as debt. Notes: This is different than market value, as it can be higher or lower depending on the circumstances. of its investment in KirchPayTV to nil, resulting in a net charge of (pound)971 million ($1,491 million) to joint ventures' goodwill amortization. On May 8, 2002, KirchPayTV filed for insolvency insolvency Condition in which liabilities exceed assets so that creditors cannot be paid. It is a financial condition that often precedes bankruptcy. In the context of equity, insolvency is the inability to pay debts as they become due; insolvency under the balance-sheet and on May 13, 2002, the Group exercised its option to transfer its interest in KirchPayTV to Taurus Taurus, in astronomy Taurus [Lat.,= the bull], in astronomy, constellation NW of Orion and lying on the ecliptic (the sun's apparent path through the heavens) between Gemini and Aries; it is one of the constellations of the zodiac. Holding, KirchPayTV's majority shareholder. Due to liquidity issues, on June 12, 2002 Taurus Holding filed for insolvency. The Group continues to believe that if the liquidity issues of Taurus Holding are not adequately resolved, it is unlikely to receive a significant amount, if any amount, in respect of its put option. The Group's share of losses in programming joint ventures increased by (pound)2 million ($3 million) to (pound)6 million ($9 million) principally due to the launch in July 2001 of the attheraces joint venture, in which BSkyB BSkyB British Sky Broadcasting has a 33.3% stake. Cashflow and interest The Group returned to positive free cash flow generation in the year. 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)250 million ($384 million) in the year, compared to an operating cash inflow of (pound)39 million ($60 million) in the prior year, an improvement of (pound)211 million ($324 million). This improvement was driven by the increase in operating profitability and lower analogue transition expenditure. After capital expenditure of (pound)101 million ($155 million), net cash interest payments of (pound)133 million ($204 million) and other net inflows of (pound)2 million ($3 million), net debt decreased by (pound)18 million ($28 million) to (pound)1,528 million ($2,345 million). Net interest costs of (pound)137 million ($210 million) increased by (pound)5 million ($8 million) compared to the prior year, mainly due to higher levels of net debt, which peaked at (pound)1,833 million ($2,813 million) at December 31, 2001. This was partly offset by a decrease in average interest rates and a decrease in the Group's share of joint venture interest payable following the cessation cessation Vox populi The stopping of a thing. See Smoking cessation. of accounting for KirchPayTV as a joint venture. Taxation The tax charge of (pound)106 million ($163 million) principally comprises an exceptional deferred tax asset 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 (pound)83 million ($127 million) following the impairment charge made in respect of KirchPayTV goodwill ((pound)96 million ($147 million) made at December 31, 2001, partly offset by a write back of (pound)13 million ($20 million) at June 30, 2002 as a result of the utilization utilization, n 1. the extent to which a given group uses a particular service in a specified period. Although usually expressed as the number of services used per year per 100 or per 1000 persons eligible for the service, utilization rates may be of tax losses.) Although the Directors ultimately expect it to be recovered in full, there is no longer sufficient evidence under 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 to support the recognition of this asset. 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 The OFT investigation into BSkyB's wholesale prices for its premium channels is ongoing. In April and May 2002, the Group submitted written and oral representations to the OFT on its Rule 14 Notice and is now waiting for the OFT to respond. Latest indications from the OFT are that no response is likely to be forthcoming before late summer 2002. An adverse decision would be appealable to the Competition Commission Appeal Tribunal A general term for a court, or the seat of a judge. In Roman Law, the term applied to an elevated seat occupied by the chief judicial magistrate when he heard causes. tribunal n. . 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 in the preliminary stages of an investigation into certain agreements, decisions or practices leading to the acquisition of broadcasting rights to football events within the EEA EEA European Economic Area EEA European Environment Agency EEA Employment Equity Act (Canada) EEA Een En Ander (Dutch) EEA Erick van Egeraat Associated Architects EEA Energy and Environmental Analysis , including the sale of exclusive broadcast rights to Premier League football by the FAPL. It is too early to assess whether the investigation will have any impact on the Group's current agreements for FAPL rights, which were notified to the European Commission on June 21, 2002 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 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 has also notified the rules of the FAPL. Corporate The Board of Directors of BSkyB has 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. Deloitte & Touche to replace Arthur Andersen For the U.S. Supreme Court case commonly known as Arthur Andersen, see . Arthur Andersen LLP, based in Chicago, was once one of the "Big Five" accounting firms (the other four are PricewaterhouseCoopers, Deloitte Touche Tohmatsu, Ernst & Young and KPMG), performing as external auditor The examples and perspective in this article or section may not represent a worldwide view of the subject. Please [ improve this article] or discuss the issue on the talk page. to BSkyB. The appointment, which has immediate effect, has been made by the Board of Directors until BSkyB's AGM AGM annual general meeting AGM n abbr (= annual general meeting) → AG f AGM n abbr (= annual general meeting) → JHV f in November 2002, when the further appointment of Deloitte & Touche will be proposed to shareholders for their consideration. As a result of this appointment, Deloitte & Touche are responsible for forming an opinion on both BSkyB's UK and US GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). group accounts for the year ended June 30, 2002. In accordance Accordance is Bible Study Software for Macintosh developed by OakTree Software, Inc.[] As well as a standalone program, it is the base software packaged by Zondervan in their Bible Study suites for Macintosh. with section 394 of the Companies Act 1985, Arthur Andersen have confirmed that there are no circumstances CIRCUMSTANCES, evidence. The particulars which accompany a fact. 2. The facts proved are either possible or impossible, ordinary and probable, or extraordinary and improbable, recent or ancient; they may have happened near us, or afar off; they are public or connected with their ceasing to hold office that they consider should be brought to the attention of the Company's members or creditors.
Appendix 1
Subscribers to Sky Channels
Prior
Year
Q4 Q1 Q2 Q3 Q4
2000/01 2001/02 2001/02 2001/02 2001/02
as at as at as at as at as at
6/30/01 9/30/01 12/31/01 3/31/02 6/30/02
--------- --------- --------- --------- ---------
DTH(1)(2)
Digital 5,308,000 5,498,000 5,716,000 5,887,000 6,101,000
Analogue 145,000 - - - -
Total DTH 5,453,000 5,498,000 5,716,000 5,887,000 6,101,000
Cable - UK 2,865,000 2,914,000 3,676,000 3,601,000 3,486,000
Cable - Ireland 621,000 602,000 613,000 610,000 605,000
DTT(3) 1,105,000 1,178,000 1,234,000 - -
-
Total 10,044,000 10,192,000 11,239,000 10,098,000 10,192,000
DTH Churn
rate for
year to date
(annualized) 10.0% 10.4%(4) 10.4%(4) 10.5%(4) 10.5%(4)
Net DTH growth
in quarter 150,000 45,000 218,000 171,000 214,000
1: Includes DTH subscribers in Ireland (245,000 as at June 30,
2002).
2: DTH subscribers includes only primary subscriptions to Sky (no
additional units are counted for Sky+ or Extra Digibox
subscriptions).
3: Includes all DTT subscribers, excluding promotional and
non-activated subscribers, as disclosed in ITV Digital press
releases. Since the announcement on March 27, 2002 that ITV
Digital was in administration, no subscriber numbers have been
reported for DTT. On April 30, 2002, the joint administrators
of ITV Digital announced their decision to close the pay
television operation of ITV Digital and, with effect from that
date, these subscribers have ceased to receive any Sky
channels.
4: Excludes analogue churn up to September 27, 2001 and the
effect of the termination of the analogue service on September
27, 2001.
British Sky Broadcasting Group plc
Consolidated Profit and Loss Account
for the year ended June 30, 2002
Before
Before goodwill and
goodwill and Goodwill and 2002 exceptional
exceptional exceptional Total items
items $m(2) items $m(2) $m(2) (pound)m
Notes (audited) (audited) (audited)(audited)
----- ------------ ---------- ---------- -----------
Turnover:
Group
turnover
and share
of joint
ventures'
turnover 4,474.1 - 4,474.1 2,915.3
Less: share
of joint
ventures'
turnover (213.6) - (213.6) (139.2)
Group turnover 1 4,260.5 - 4,260.5 2,776.1
------- ------- ------- -------
Operating
expenses, net 2 (3,966.6) (209.5) (4,176.1) (2,584.6)
EBITDA 18 418.5 (27.9) 390.6 272.7
Depreciation (124.4) - (124.4) (81.1)
Amortization (0.2) (181.6) (181.8) (0.1)
Operating
profit (loss) 293.9 (209.5) 84.4 191.5
Share of
operating
results
of joint
ventures 3 (117.7) - (117.7) (76.7)
Joint
ventures'
goodwill
amortization,
net(1) - (1,641.9) (1,641.9) -
Profit on
sale of
fixed asset
investments 4 - 3.5 3.5 -
Share of
joint venture's
loss on
sale of
fixed asset
investment 4 - - - -
Amounts written
off fixed asset
investments 4 - (92.1) (92.1) -
Release of
provision
(provision)
for loss on
disposal of
subsidiary 4 - 15.3 15.3 -
Profit (loss)
on ordinary
activities
before
interest
and taxation 176.2 (1,924.7) (1,748.5) 114.8
Interest
receivable and
similar income 5 17.0 - 17.0 11.1
Interest
payable and
similar
charges 5 (227.1) - (227.1) (148.0)
Loss on
ordinary
activities
before taxation (33.9) (1,924.7) (1,958.6) (22.1)
Tax on loss on
ordinary
activities 6 (43.9) (119.4) (163.3) (28.6)
Loss on
ordinary
activities
after taxation (77.8) (2,044.1) (2,121.9) (50.7)
Equity dividends
- paid and -
proposed
Retained loss 16 (2,121.9)
Loss per share
- basic and
diluted 7 (4.1c) (108.3c) (112.4c) (2.7p)
Goodwill Before Goodwill
and goodwill and and
exceptional 2002 exceptional exceptional 2001
items Total items items Total
(pound)m (pound)m (pound)m (pound)m (pound)m
(audited) (audited) (audited) (audited) (audited)
--------- -------- ---------- ---------- ----------
Turnover:
Group
turnover
and share
of joint
ventures'
turnover - 2,915.3 2,530.1 - 2,530.1
Less: share
of joint
ventures'
turnover - (139.2) (224.1) - (224.1)
Group turnover - 2,776.1 2,306.0 - 2,306.0
Operating
expenses,
net (136.5) (2,721.1) (2,145.8) (67.4) (2,213.2)
EBITDA (18.2) 254.5 224.3 (16.1) 208.2
Depreciation - (81.1) (64.1) (7.0) (71.1)
Amortization (118.3) (118.4) - (44.3) (44.3)
Operating
profit (loss) (136.5) 55.0 160.2 (67.4) 92.8
Share of
operating
results
of joint
ventures - (76.7) (239.2) (16.5) (255.7)
Joint
ventures'
goodwill
amortization,
net(1) (1,069.9) (1,069.9) - (101.1) (101.1)
Profit on
sale of
fixed asset
investments 2.3 2.3 - - -
Share of
joint
venture's
loss on
sale of
fixed asset
investment - - - (69.5) (69.5)
Amounts
written
off
fixed asset
investments (60.0) (60.0) - (38.6) (38.6)
Release of
provision
(provision)
for loss on
disposal of
subsidiary 10.0 10.0 - (10.0) (10.0)
Profit (loss)
on ordinary
activities
before
interest
and
taxation (1,254.1) (1,139.3) (79.0) (303.1) (382.1)
Interest
receivable
and
similar
income - 11.1 18.2 2.7 20.9
Interest
payable and
similar
charges - (148.0) (153.3) - (153.3)
Loss on
ordinary
activities
before
taxation (1,254.1) (1,276.2) (214.1) (300.4) (514.5)
Tax on
loss on
ordinary
activities (77.8) (106.4) (23.3) (0.8) (24.1)
Loss on
ordinary
activities
after
taxation (1,331.9) (1,382.6) (237.4) (301.2) (538.6)
Equity
dividends
- paid and - -
proposed
Retained loss (1,382.6) (538.6)
Loss per share
- basic and
diluted (70.6p) (73.3p) (12.9p) (16.3p) (29.2p)
Details of movements on reserves are shown in note 16.
The accompanying notes are an integral part of this consolidated
profit and loss account.
All results relate to continuing operations.
(1) Included within joint ventures' goodwill amortisation of
(pound)1,069.9 million ($1,642.0 million) for the year is
(pound)971.4 million ($1,490.8 million) in respect of an
impairment of KirchPayTV goodwill (see notes 4 and 10).
(2) Dollar equivalents are provided for reader convenience at the
June 30, 2002 exchange rate of (pound)1 = $1.5347
British Sky Broadcasting Group plc
Consolidated Profit and Loss Account
for the three months ended June 30, 2002
Three
months Before
Before ended goodwill Goodwill
goodwill Goodwill June 30, and and
and and 2002 exceptional exceptional
exceptional exceptional Total items items
items $m(1) items $m(1) $m(1) (pound)m (pound)m
(unaudited) (unaudited) (unaudited)(unaudited) (unaudited)
----------- ---------- ---------- ---------- ---------
Turnover:
Group
turnover and
share of
joint
ventures'
turnover 1,178.8 - 1,178.8 768.1 -
Less: share
of joint
ventures'
turnover (31.0) - (31.0) (20.2) -
Group
turnover 1,147.8 - 1,147.8 747.9 -
-------- -------- -------- -------- -------
Operating
expenses,
net (1,052.3) (38.7) (1,091.0) (685.7) (25.2)
-------- -------- -------- -------- -------
EBITDA 127.5 6.3 133.8 83.1 4.1
Depreciation (31.9) - (31.9) (20.8) -
Amortization (0.1) (45.0) (45.1) (0.1) (29.3)
-------- -------- -------- -------- -------
Operating
profit (loss) 95.5 (38.7) 56.8 62.2 (25.2)
-------- -------- -------- -------- -------
Share of
operating
results
of joint
ventures (4.9) - (4.9) (3.2) -
Joint
ventures'
goodwill
amortization,
net - - - - -
Amounts
written off
fixed asset
investments - - - - -
Provision for
loss on
disposal of
subsidiary - - - - -
Profit (loss)
on ordinary
activities
before
interest and
taxation 90.6 (38.7) 51.9 59.0 (25.2)
-------- -------- -------- -------- -------
Interest
receivable
and similar
income 1.5 - 1.5 1.0 -
Interest
payable and
similar
charges (49.4) - (49.4) (32.2) -
Profit (loss)
on ordinary
activities
before
taxation 42.7 (38.7) 4.0 27.8 (25.2)
-------- -------- -------- -------- -------
Tax on loss
on ordinary
activities (18.5) 17.1 (1.4) (12.0) 11.1
Profit (loss)
on ordinary
activities
after
taxation 24.2 (21.6) 2.6 15.8 (14.1)
-------- -------- -------- -------- -------
Earnings (loss)
per share
- basic
and diluted 1.2c (1.0c) 0.2c 0.8p (0.7p)
-------- -------- -------- -------- -------
Three
Three Before months
months goodwill Goodwill ended
ended and and June 30,
June 30, exceptional exceptional 2001
2002 items items Total
Total (pound)m as (pound)m as (pound)m as
(pound)m restated(2) restated(2) restated(2)
(unaudited)(unaudited) (unaudited) (unaudited)
---------- ---------- ---------- ----------
Turnover:
Group
turnover and
share of
joint
ventures'
turnover 768.1 705.7 - 705.7
Less: share
of joint
ventures'
turnover (20.2) (70.8) - (70.8)
Group
turnover 747.9 634.9 - 634.9
-------- -------- -------- --------
Operating
expenses,
net (710.9) (571.9) (39.8) (611.7)
-------- -------- -------- --------
EBITDA 87.2 84.3 (16.1) 68.2
Depreciation (20.8) (21.3) (7.0) (28.3)
Amortization (29.4) - (16.7) (16.7)
-------- -------- -------- --------
Operating
profit (loss) 37.0 63.0 (39.8) 23.2
-------- -------- -------- --------
Share of
operating
results
of joint
ventures (3.2) (64.2) (16.5) (80.7)
Joint
ventures'
goodwill
amortization,
net - - (49.3) (49.3)
Amounts
written off
fixed asset
investments - - 1.4 1.4
Provision for
loss on
disposal of
subsidiary - - (10.0) (10.0)
Profit (loss)
on ordinary
activities
before
interest and
taxation 33.8 (1.2) (114.2) (115.4)
-------- -------- -------- --------
Interest
receivable
and similar
income 1.0 3.7 2.7 6.4
Interest
payable and
similar
charges (32.2) (40.2) - (40.2)
Profit (loss)
on ordinary
activities
before
taxation 2.6 (37.7) (111.5) (149.2)
Tax on loss
on ordinary
activities (0.9) (15.6) (0.8) (16.4)
Profit (loss)
on ordinary
activities
after
taxation 1.7 (53.3) (112.3) (165.6)
-------- -------- -------- -------
Earnings (loss)
per share
- basic
and diluted 0.1p (2.9p) (6.1p) (9.0p)
-------- -------- -------- -------
All results relate to continuing operations.
(1) Dollar equivalents are provided for reader convenience at the
June 30, 2002 exchange rate of (pound)1 = $1.5347
(2) As restated following the adoption of FRS 19, Deferred
taxation, at June 30, 2001.
British Sky Broadcasting Group plc
Consolidated Statement of Total Recognized Gains and Losses
for the year ended June 30, 2002
2002 2002 2001
$m(1) (pound)m (pound)m
Notes (audited) (audited) (audited)
----- --------- --------- ---------
Loss for the financial year 16 (2,121.9) (1,382.6) (538.6)
----- --------- --------- ---------
Net loss on deemed disposals - - (20.7)
Translation differences
on foreign
currency net investment 16 2.1 1.4 (2.1)
Total recognized
gains and losses
relating to the year (2,119.8) (1,381.2) (561.4)
----- --------- --------- ---------
The accompanying notes are an integral part of this consolidated
statement of total recognized gains and losses.
(1) Dollar equivalents are provided for reader convenience at the
June 30, 2002 exchange rate of (pound)1 = $1.5347
British Sky Broadcasting Group plc
Consolidated Balance Sheet as at June 30, 2002
2002 2002 2001
$m(1) (pound)m (pound)m
Notes (audited) (audited) (audited)
Fixed assets
Intangible assets 8 1,008.9 657.4 789.3
Tangible assets 9 526.4 343.0 315.4
Investments 10 197.8 128.9 1,305.9
1,733.1 1,129.3 2,410.6
---------------------------------------------------------------------
Current assets
Stocks 11 635.7 414.2 424.1
Debtors: Amounts
falling due within one year 12 615.2 400.9 493.4
Debtors: Amounts falling
due after more than one year 12 317.7 207.0 324.6
Cash at bank and in hand 77.2 50.3 223.6
1,645.8 1,072.4 1,465.7
---------------------------------------------------------------------
Creditors: Amounts falling
due within one year
- short-term
borrowings 13 (2.3) (1.5) (2.1)
- other creditors 13 (1,387.2) (903.9) (988.7)
(1,389.5) (905.4) (990.8)
---------------------------------------------------------------------
Net current assets 256.3 167.0 474.9
---------------------------------------------------------------------
Total assets less current
liabilities 1,989.4 1,296.3 2,885.5
---------------------------------------------------------------------
Creditors: Amounts falling
due after more than one year
- long-term
borrowings 14 (2,420.1) (1,576.9) (1,768.0)
- other creditors 14 (24.5) (16.0) (13.9)
(2,444.6) (1,592.9) (1,781.9)
---------------------------------------------------------------------
Provisions for liabilities
and charges 15 (6.3) (4.1) (43.0)
(461.5) (300.7) 1,060.6
---------------------------------------------------------------------
Capital and reserves - equity
Called-up share capital 16 1,452.9 946.7 944.4
Share premium 16 3,698.3 2,409.8 2,377.6
Shares to be issued 16 392.6 255.8 256.9
Merger reserve 16 409.3 266.7 340.8
Profit and loss account 16 (6,414.6) (4,179.7) (2,859.1)
16 (461.5) (300.7) 1,060.6
---------------------------------------------------------------------
The accompanying notes are an integral part of this consolidated
balance sheet.
(1) Dollar equivalents are provided for reader convenience at the
June 30, 2002 exchange rate of (pound)1 = $1.5347
British Sky Broadcasting Group plc
Consolidated Cash Flow Statement for the year ended June 30, 2002
Notes
2002 2002 2001
$m(a) (pound)m (pound)m
(audited) (audited)(audited)
Net cash inflow from
operating activities 17a 383.2 249.7 38.9
------------------------------------------------------------------
Returns on investments and
servicing of finance
Interest received and
similar income 13.5 8.8 4.6
Interest paid and similar
charges on external
financing (216.4) (141.0) (118.6)
Interest element of
finance lease payments (0.9) (0.6) (1.7)
Net cash outflow from
returns on investments
and servicing of
finance (203.8) (132.8) (115.7)
------------------------------------------------------------------
Taxation
Consortium relief
received (paid) 34.5 22.5 (16.2)
Net cash inflow (outflow)
from taxation 34.5 22.5 (16.2)
------------------------------------------------------------------
Capital expenditure and
financial investment
Payments to acquire tangible
fixed assets (154.6) (100.8) (133.3)
Payments to acquire fixed
asset investments - - (25.5)
Receipt from sales of
fixed asset investments 0.6 0.4 -
Receipt from sales of
intangible assets 0.9 0.6 0.2
Purchase of own
shares (ESOP) (41.3) (26.9) -
Net cash outflow from
capital expenditure and
financial investment (194.4) (126.7) (158.6)
------------------------------------------------------------------
Acquisitions and disposals
Purchase of subsidiary
undertakings - - (27.3)
Net cash acquired with
subsidiary undertakings - - 11.7
Funding to joint ventures (17.8) (11.6) (137.3)
Repayments of funding from
joint ventures 7.4 4.8 -
Net cash outflow from
acquisitions and
disposals (10.4) (6.8) (152.9)
------------------------------------------------------------------
Net cash inflow (outflow)
before management of
liquid resources and
financing 9.1 5.9 (404.5)
------------------------------------------------------------------
Management of liquid
resources
Decrease in short-term
deposits 17c 106.7 69.5 85.0
------------------------------------------------------------------
Financing
Proceeds from issue of
ordinary shares 21.9 14.3 6.5
Payments made on the
issue of ordinary
shares (2.8) (1.8) (3.5)
Capital element of
finance lease rental
payments 17b (2.6) (1.7) (2.1)
Net (decrease) increase
in total debt 17b (291.6) (190.0) 359.7
Net cash (outflow) inflow
from financing (275.1) (179.2) 360.6
------------------------------------------------------------------
(Decrease) increase in
cash 17c (159.3) (103.8) 41.1
------------------------------------------------------------------
Decrease (increase) in
net debt 17c 28.2 18.4 (401.5)
------------------------------------------------------------------
The accompanying notes are an integral part of this consolidated
cash flow statement.
(a) Dollar equivalents are provided for reader convenience at the
June 30, 2002 exchange rate of (pound)1 = $1.5347
Notes
1. Turnover
2002 2001
(pound)m (pound)m
(audited) (audited)
Direct-to-home subscribers 1,929.2 1,536.7
Cable and DTT subscribers 279.4 299.1
Advertising 250.7 270.5
Interactive 186.0 93.0
Other 130.8 106.7
2,776.1 2,306.0
------------------------------------------------------------
2. Operating expenses, net
Before Goodwill and 2002
goodwill and
exceptional exceptional
items items Total
(pound)m (pound)m (pound)m
(audited) (audited) (audited)
Programming (i) 1,439.3 - 1,439.3
Transmission and
related functions(i) 146.6 (4.1) 142.5
Marketing 416.6 - 416.6
Subscriber management 291.1 - 291.1
Administration 203.2 140.6 343.8
Gaming 87.8 - 87.8
2,584.6 136.5 2,721.1
-------------------------------------------------------------
Before Goodwill 2001
goodwill and and
exceptional exceptional
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
------------------------------------------------------------
(i) The amounts shown are net of(pound)15.3 million
(2001:(pound)55.1 million) receivable from the disposal of
programming rights not acquired for use by the Group,
and(pound)23.7 million (2001:(pound)53.9 million) in respect
of the provision to third party broadcasters of spare
transponder capacity.
3. Share of operating results of joint ventures
This relates to the Group's equity share of the operating results
of the Group's joint ventures.
Before
Before Excep- excep- Excep- 2001
exceptional tional 2002 tional tional
items items Total items items Total
(pound)m (pound)m (pound)m (pound)m (pound)m(pound)m
(audited)(audited)(audited)(audited)(audited)(audited)
KirchPayTV GmbH
& Co KGaA
("KirchPayTV") 70.0 - 70.0 116.0 - 116.0
British Interactive
Broadcasting
Holdings Limited
("BiB") - - - 118.9 16.5 135.4
Programming joint
ventures, net 6.7 - 6.7 4.3 - 4.3
Total losses 76.7 - 76.7 239.2 16.5 255.7
-----------------------------------------------------------------------
KirchPayTV (see note 10) The Group ceased equity accounting for KirchPayTV losses using the gross equity method from February 8, 2002, on which date the Group announced that it had written down its investment in KirchPayTV to nil, effective December 31, 2001. The Group considered that, by February 8, 2002, the relationship between the Group and KirchPayTV had irrevocably ir·rev·o·ca·ble adj. Impossible to retract or revoke: an irrevocable decision. ir·rev changed and that the Group has not exercised significant influence since that date. As the Group has no intention of providing any future funding to KirchPayTV and the Group, on a 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: basis, has no financial commitments, outstanding financial liabilities or contingent liabilities Contingent Liability 1. The possibility of an obligation to pay certain sums dependent on future events. 2. Defined obligations by a company that must be met, but the probability of payment is minimal. Notes: 1. in respect of KirchPayTV, an amount of (pound)13.5 million was released from the impairment provision made at December 31, 2001 in order to match the Group's share of KirchPayTV's losses for the period from January January: see month. 1, 2002 to February 8, 2002. BiB 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 agreement 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.
4. Exceptional items
Charge Charge
(credit) Taxation (credit)
before (credit) 2002 before Taxation 2001
taxation charge Total taxation charge Total
(pound)m (pound)m (pound)m (pound)m (pound)m (pound)m
(audited) (audited) (audited)(audited) (audited) (audited)
-------------------------------------------------------------
Estimated
cost of
reorganization
of Sky
Interactive
(h) - - - 23.1 - 23.1
Provision
against
remaining
unprovided
ITV Digital
programming
debtors(a) 22.3 (6.7) 15.6 - - -
Release of
analogue
termination
provision(b)(4.1) 1.2 (2.9) - - -
Exceptional
operating
items 18.2 (5.5) 12.7 23.1 - 23.1
----------------------------------------------------------------------
Share of joint
venture's
operating
exceptional
item(i) - - - 16.5 - 16.5
Joint ventures'
goodwill
amortization,
net(c) 971.4 - 971.4 - - -
Profit on
sale of
fixed asset
investments
(d) (2.3) - (2.3) - - -
Share of joint
venture's
loss on
sale of
fixed asset
investment(j) - - - 69.5 - 69.5
Amounts written
off fixed
asset
investments
(see
note 10)
(g)(k) 60.0 - 60.0 38.6 - 38.6
(Release of
provision)
provision for
loss on
disposal of
subsidiary
(e)(l) (10.0) - (10.0) 10.0 - 10.0
Finance credit
(see note 5)
(m) - - - (2.7) 0.8 (1.9)
Deferred tax
asset
write-down
(f) - 83.3 83.3 - - -
1,037.3 77.8 1,115.1 155.0 0.8 155.8
----------------------------------------------------------------------
2002 Exceptional operating items (a) ITV Digital As of March 27, 2002, the date on which the ITV Digital DTT platform was put into administration, the Group had balances owed to it and unprovided for, in respect of programming licensed to ITV Digital, of (pound)22.3 million. On April 30, 2002, the joint administrators of ITV Digital announced the closure of pay television services on the platform and their intention to close the administration. Accordingly, the Group made an exceptional operating provision against the whole of this balance effective March 31, 2002. (b) Release of analogue termination provision On September 27, 2001, the Group terminated ter·mi·nate v. ter·mi·nat·ed, ter·mi·nat·ing, ter·mi·nates v.tr. 1. To bring to an end or halt: its analogue operation. From the original provision of (pound)41.0 million, taken at June 30, 2000, (pound)4.1 million of provision has not been utilized and has therefore been released to the profit and loss account as an exceptional credit. Other exceptional items (c) Joint ventures' goodwill amortization, net The exceptional item of (pound)971.4 million of joint ventures' goodwill amortization, net, relates to the impairment charge taken against the carrying value of the Group's interest in KirchPayTV of (pound)984.9 million as at December 31, 2001, net of an amount of (pound)13.5 million released from the provision matching the Group's share of losses for the period from January 1, 2002 to February 8, 2002, at which date the Group ceased to gross equity account for KirchPayTV's results (see notes 3 and 10). (d) Profit on sale of fixed asset investments During the year, the Group sold its investments in Static 2358 Limited and Gameplay
Gameplay includes all player experiences during the interaction with game systems, especially formal games. Proper use is coupled with reference to "what the player does". plc realizing a profit on disposal of (pound)2.3 million. (e) Release of provision for loss on disposal of subsidiary On October October: see month. 16, 2001, the Group and 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. , 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, announced that they had agreed not to pursue the proposed joint venture to offer a fixed-odds betting service on 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. and other media. As a result, the provision for loss on disposal of the subsidiary, taken at June 30, 2001, has been written back, resulting in a non-cash exceptional profit of (pound)10.0 million (see note (l) below). The Group continues to operate and develop interactive TV betting services through its wholly-owned bookmaker, Surrey Sports. (f) Write down of deferred tax asset Following the impairment charge made in respect of the Group's investment in KirchPayTV at December 31, 2001 (see note 10) there was insufficient evidence insufficient evidence n. a finding (decision) by a trial judge or an appeals court that the prosecution in a criminal case or a plaintiff in a lawsuit has not proved the case because the attorney did not present enough convincing evidence. to support the recognition of a deferred tax asset arising on losses incurred by certain UK companies. Accordingly, the deferred tax asset of (pound)95.6 million was written off in full as at December 31, 2001. Subsequent to this date (pound)12.3 million of this amount has been written back due to the utilization of tax losses. The Directors ultimately expect the remaining (pound)83.3m to be recovered in full. (g) Amounts written off fixed asset investments At December 31, 2001, (pound)60.0 million was provided against the Group's minority investments in football clubs. 2001 Exceptional operating items (h) Reorganization The process of carrying out, through agreements and legal proceedings, a business plan for winding up the affairs of, or foreclosing a mortgage upon, the property of a corporation that has become insolvent. of Sky Interactive In May 2001, the Group announced the consolidation of all of its interactive and online activities within the 'Sky Interactive' division. The costs of reorganization within Sky Interactive were estimated at (pound)23.1 million and principally comprised the cost of termination of certain contracts, 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 and a reduction in headcount. Of these costs, (pound)7.0 million were included within fixed assets fixed assets npl → activo sg fijo fixed assets npl → immobilisations fpl fixed assets fix npl → , (pound)4.0 million were included within other creditors and the remainder within provisions. Notes 4. Exceptional items (continued) Other exceptional items (i) Share of joint venture's operating exceptional item In April 2001, BiB incurred exceptional operating costs of (pound)16.5 million, which principally comprised the cost of the write-down Write-Down Reducing the book value of an asset because it is overvalued compared to the market value. Notes: This is usually reflected in the company's income statement as an expense, thereby reducing net income. of the current platform. Of these costs, (pound)13.1 million were included within fixed assets and the remainder within provisions. (j) Share of joint venture's loss on sale of fixed asset investment On August 31, 2000, KirchPayTV disposed dis·pose v. dis·posed, dis·pos·ing, dis·pos·es v.tr. 1. To place or set in a particular order; arrange. 2. 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 was calculated as the Group'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 the Group) and the net proceeds Net Proceeds The amount received after all costs are deducted from the sale of a piece of property or security. Notes: In the case of an investor selling a security, net proceeds represent the proceeds from the sale minus any trading costs (i.e. commissions). realized by KirchPayTV of (pound)10.05 per share. (k) Amounts written off fixed asset investments At June 30, 2001, (pound)38.6 million was provided against the Group's minority investments in new media companies. (l) Provision for loss on disposal of subsidiary On July 11, 2001, the Group 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. The agreement was for the Group to contribute its wholly-owned bookmaker, Surrey Sports, to the joint venture and a provision was made in the year to June 30, 2001 for the adjustment to existing goodwill which would have been necessary when Surrey Sports was transferred to the new joint venture. This provision was subsequently reversed when the Group and Ladbrokes agreed not to pursue the proposed joint venture in October 2001 (see note (e) above). (m) Finance credit An exceptional accrual accrual, n continually recurring short-term liabilities. Examples are accrued wages, taxes, and interest. was made in June 1999 in respect of the mark-to-market Mark-to-market Adjustment of the book value or collateral value of a security to reflect current market value. of a floating-to-fixed interest rate swap Interest Rate Swap A deal between banks or companies where borrowers switch floating-rate loans for fixed rate loans in another country. These can be either the same or different currencies. over (pound)100 million of the (pound)1,000 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 ("RCF RCF Remote Call Forwarding RCF Residential Care Facility RCF Relative Centrifugal Force RCF Rolling Contact Fatigue RCF Refractory Ceramic Fiber RCF Revolving Credit Facility RCF Rock Characterisation Facility RCF Registration Confirm RCF Retained Cash Flow ") which was no longer required when the RCF was cancelled can·cel v. can·celed also can·celled, can·cel·ing also can·cel·ling, can·cels also can·cels v.tr. 1. To cross out with lines or other markings. See Synonyms at erase. 2. 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.
5. Interest
a) Interest receivable and similar income
2002 2001
(pound)m (pound)m
(audited) (audited)
Interest receivable on short-term deposits 8.2 3.8
Share of joint ventures' interest receivable 2.0 3.5
Interest receivable on funding to joint ventures 0.3 10.4
Other interest receivable and similar income 0.6 0.5
11.1 18.2
----------------------------------------------------------------------
Exceptional finance credit (see note 4) - 2.7
11.1 20.9
----------------------------------------------------------------------
b) Interest payable and similar charges
2002 2001
(pound)m (pound)m
(audited) (audited)
On bank loans, overdrafts and other loans
repayable within five years, not by
installments:
- (pound)300 million RCF 10.8 0.8
- (pound)750 million RCF 46.3 38.5
US$650 million of 8.200% Guaranteed Notes
repayable in 2009 31.6 31.6
(pound)100 million of 7.750% Guaranteed Notes
repayable in 2009 7.8 7.8
US$600 million of 6.875% Guaranteed Notes
repayable in 2009 30.1 30.1
US$300 million of 7.300% Guaranteed Notes
repayable in 2006 15.1 15.5
Finance lease interest 1.0 0.9
Share of joint ventures' interest payable 4.9 27.8
Other interest payable and similar charges 0.4 0.3
148.0 153.3
----------------------------------------------------------------------
Notes
6. Taxation
2002 2001
(pound)m (pound)m
(audited) (audited)
Tax charge on profit before exceptional items:
Current tax - -
Deferred tax 27.3 23.3
Share of joint ventures' tax charge 1.3 -
28.6 23.3
---------------------------------------------------------------------
Exceptional tax (credit) charge:
Deferred tax credit on operating
exceptional items (see note 4) (5.5) 0.8
Exceptional deferred tax charge (see note 4) (i) 83.3 -
77.8 0.8
---------------------------------------------------------------------
106.4 24.1
---------------------------------------------------------------------
(i) An exceptional deferred tax charge of (pound)95.6 million was
made at December 31, 2001, against which (pound)12.3 million
has been written back at June 30, 2002 as a result of the
utilization of tax losses.
7. Loss per share
Before Exceptional 2002
After
goodwill and goodwill and
exceptional exceptional
items Goodwill items items
(audited) (audited) (audited) (audited)
Loss on ordinary
activities after
taxation (pound)50.7m(pound)216.8m(pound)1,115.1m(pound)1,382.6m
Loss per share -
basic and diluted 2.7p 11.5p 59.1p 73.3p
----------------------------------------------------------------------
Before Goodwill Exceptional 2001
goodwill After
and goodwill and
exceptional exceptional
items items items
(audited) (audited) (audited) (audited)
Loss on ordinary
activities after(pound)237.4m(pound)145.4m (pound)155.8m (pound)538.6m
taxation
Loss per share -
basic and diluted 12.9p 7.9p 8.4p 29.2p
---------------------------------------------------------------
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
1,887,375,018 (2001: 1,847,057,433).
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.
8. Intangible fixed assets
The movement in the year was as follows:
Other intangible
Goodwill fixed assets Total
(pound)m (pound)m (pound)m
(audited) (audited) (audited)
--------------------------------------------------------------------
--------------------------------------------------------------------
Net book value at July 1, 2001 788.4 0.9 789.3
Fair value adjustments to BiB
provisional goodwill (22.9) - (22.9)
Disposals - (0.6) (0.6)
Charge (118.3) (0.1) (118.4)
Release of provision for loss on
disposal of subsidiary (see
note 4) 10.0 - 10.0
Net book value at June 30, 2002 657.2 0.2 657.4
--------------------------------------------------------------------
Goodwill of (pound)272.4 million arising on the acquisition of
Sports Internet Group plc ("SIG") is being amortized over a period of
seven years on a straight-line basis. Goodwill of (pound)542.0 million
(after fair value adjustments) arising on the acquisition of BiB is
being amortized over a period of seven years on a straight-line basis.
Goodwill of (pound)5.2 million arising on the acquisition of WAP TV
Limited ("WAP TV") is being amortized over a period of seven years on
a straight-line basis.
Notes
9. Tangible fixed assets
The movement in the year was as follows:
Freehold Assets
land Short Equipment, in
and leasehold fixtures course
buildings improve- and of Total
ments fittings construc-
tion
(pound)m (pound)m (pound)m (pound)m (pound)m
(audited) (audited) (audited) (audited) (audited)
Net book value as
at July 1, 2001 24.9 40.8 242.7 7.0 315.4
Additions 8.0 3.0 75.8 27.9 114.7
Disposals, net - (0.1) (1.4) - (1.5)
Transfers - - 0.5 (5.0) (4.5)
Depreciation (1.0) (3.7) (76.4) - (81.1)
Net book value as
at June 30, 2002 31.9 40.0 241.2 29.9 343.0
----------------------------------------------------------------------
10. Fixed asset investments
2002 2001
(pound)m (pound)m
(audited) (audited)
Joint ventures:
- KirchPayTV - 1,142.1
- Programming joint ventures 21.8 21.6
Investment in own shares 42.2 19.1
Other investments 64.9 123.1
Total fixed asset investments 128.9 1,305.9
----------------------------------------------------------
KirchPayTV
As at December 31, 2001, the Group wrote down its investment in
KirchPayTV to nil resulting in an impairment charge of (pound)984.9
million. A write-back of the impairment charge of (pound)13.5 million
has subsequently been made to offset the recognition of KirchPayTV
losses from January 1, 2002 to February 8, 2002 (see note 3).
On May 8, 2002, KirchPayTV filed for insolvency and on May 13,
2002, the Group exercised its put option to transfer the Group's
22.03% equity interest in KirchPayTV to Taurus Holding, KirchPayTV's
majority shareholder. Due to liquidity issues, on June 12, 2002 Taurus
Holding also filed for insolvency. The Group continues to believe
that, unless the liquidity issues of Taurus Holding are adequately
resolved, it is unlikely to receive a significant amount, if any
amount, in respect of the put option.
11. Stocks
2002 2001
(pound)m (pound)m
(audited) (audited)
Television program rights 367.3 364.6
Set-top boxes and related equipment 42.2 55.4
Raw materials and consumables 4.7 4.1
414.2 424.1
------------------------------------------------------------
At least 77% (2001: 71%) of the existing television program rights
at June 30, 2002 will be amortized within one year.
Notes
12. Debtors
2002 2001
(pound)m (pound)m
(audited) (audited)
Debtors: Amounts falling due within one year
Trade debtors 177.5 231.7
Amounts owed by joint ventures 15.2 11.2
Amounts owed by other related parties 1.0 1.9
Other debtors 8.5 29.0
Prepaid program rights 80.5 51.4
Prepaid transponder rentals 15.5 25.1
Advance corporation tax 18.2 -
Deferred tax assets 13.9 68.9
Prepaid media rights 3.7 3.0
Other prepayments and accrued income 66.9 71.2
400.9 493.4
---------------------------------------------------------------------
Debtors: Amounts falling due after
more than one year
Prepaid program rights 38.6 78.2
Prepaid transponder rentals 55.6 61.8
Advance corporation tax 67.1 85.3
Deferred tax assets 24.9 75.0
Prepaid media rights 12.8 11.9
Other prepayments and accrued income 8.0 12.4
207.0 324.6
---------------------------------------------------------------------
13. Creditors: Amounts falling due
within one year
2002 2001
(pound)m (pound)m
(audited) (audited)
Short-term borrowings
Obligations under finance leases 1.5 2.1
1.5 2.1
---------------------------------------------------------------------
Other
Trade creditors 311.1 457.4
Amounts due to related parties 20.4 18.3
UK corporation tax 4.7 4.7
VAT 86.2 62.3
Social security and PAYE 7.0 6.2
Other creditors 42.0 8.4
Accruals and deferred income 432.5 431.3
Government grants - 0.1
903.9 988.7
---------------------------------------------------------------------
905.4 990.8
---------------------------------------------------------------------
Included within trade creditors are(pound)243.6 million
(2001:(pound)291.9 million) of US dollar-denominated program
creditors. At least 90% (2001: 90%) of these were covered by forward
rate currency contracts.
Notes
14. Creditors: Amounts falling due after more than one year
2002 2001
(pound)m (pound)m
(audited) audited)
Long-term borrowings
(pound)750 million RCF 500.0 690.0
(pound)300 million RCF - -
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 7.8 8.9
Other borrowings 0.2 0.2
1,576.9 1,768.0
----------------------------------------------------------------------
Other
Accruals and deferred income 15.2 13.1
Government grants 0.8 0.8
16.0 13.9
----------------------------------------------------------------------
1,592.9 1,781.9
----------------------------------------------------------------------
The (pound)750 million RCF is repayable in full on June 29, 2004
and bears interest at rates between 0.50% and 1.40% per annum above
LIBOR, depending on the Group's credit rating. (pound)500.0 million
was drawn on this facility at June 30, 2002. 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. There were no drawings on this facility at June
30, 2002.
For a core (pound)300 million of borrowings under the (pound)750
million RCF, the Group's exposure to LIBOR has been removed via an
interest rate swap transaction, which fixes the rate at 6.415%
(excluding the margin described above). This arrangement expires in
January 2003.
15. Provisions for liabilities and charges
Sky In-Home
Service
Analogue Limited
termination Transition reorganisation
provision provision provision
(pound)m (pound)m (pound)m
(audited) (audited) (audited)
(a) (b) (c)
As at July 1, 2001 8.2 18.6 0.4
Utilized in year (4.1) (18.6) (0.2)
Released in year (4.1) - -
Transferred to fixed assets - - -
As at June 30, 2002 - - 0.2
----------------------------------------------------------------------
Sky Provision
Interactive for
reorganization closure of
provision Sky Pictures Total
(pound)m (pound)m (pound)m
(audited) (audited) (audited)
(d) (e)
As at July 1, 2001 15.5 0.3 43.0
Utilized in year (7.1) (0.3) (30.3)
Released in year - - (4.1)
Transferred to fixed assets (4.5) - (4.5)
As at June 30, 2002 3.9 - 4.1
----------------------------------------------------------------------
(a) The analogue termination provision principally comprised the cost of early termination of analogue transponder A receiver/transmitter on a communications satellite. It receives a microwave signal from earth (uplink), amplifies it and retransmits it back to earth at a different frequency (downlink). A satellite has several transponders. leases and various other costs incurred in terminating the Group's analogue operation. (pound)4.1 million of the provision was utilized during the year (2001: (pound)22.5 million). The remaining (pound)4.1 million of provision was released during the year as an operating exceptional item. (b) The remaining transition provision utilized during the year of (pound)18.6 million (2001: (pound)174.3 million) is net of (pound)2.2 million (2001: (pound)21.2 million) of installation income received from subscribers. The transition provision comprised the cost of the set-top box The cable TV box that sits on "top" of the TV "set," although it is often located several feet away in an equipment rack. The set-top box descrambles the premium channels and provides a tuner for the higher cable numbers that very old TVs did not support. , installation costs, Sky Interactive set-top box subsidy costs and various other costs incurred in enabling a subscriber to use the digital service, less any upfront income received from the subscriber. (c) The remaining Sky In-Home Service Limited reorganization provision principally comprises the costs of onerous on·er·ous adj. 1. Troublesome or oppressive; burdensome. See Synonyms at burdensome. 2. Law Entailing obligations that exceed advantages. lease contracts and is expected to be utilized by June 2005. (d) The Sky Interactive reorganization provision related to costs associated with the reorganization and consolidation of all interactive and online activities within the division 'Sky Interactive' (see note 4). The remaining provision principally comprises the cost of onerous contracts ONEROUS CONTRACT, civil law. One made for a consideration given or promised, however small. Civ. Code of Lo. art. 1767. and is expected to be utilized by June 2009. (e) The Sky Pictures provision principally comprised the cost of a reduction in headcount.
Notes
16. 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, 2001 944.4 2,377.6 256.9
Issue of share capital 2.3 34.0 (1.1)
Share issue costs - (1.8) -
Loss for the financial year - - -
Transfer from merger reserve - - -
Translation differences on
foreign currency net investment - - -
As at June 30, 2002 946.7 2,409.8 255.8
----------------------------------------------------------------------
Total
equity
Profit shareholders'
Merger and loss funds
reserve account (deficit)
(pound)m (pound)m (pound)m
(audited) (audited) (audited)
As at July 1, 2001 340.8 (2,859.1) 1,060.6
Issue of share capital - (13.5) 21.7
Share issue costs - - (1.8)
Loss for the financial year - (1,382.6) (1,382.6)
Transfer from merger reserve (74.1) 74.1 -
Translation differences on
foreign currency net investment - 1.4 1.4
As at June 30, 2002 266.7 (4,179.7) (300.7)
----------------------------------------------------------------------
During the year the Company issued shares with a market value of
(pound)35.2 million (2001: (pound)15.6 million) in respect of the
exercise of options awarded under various share option plans, with
(pound)14.3 million (2001: (pound)6.5 million) received from
employees.
17. Notes to consolidated cash flow statement
a) Reconciliation of operating profit (loss) to operating cash flows
Before
goodwill Goodwill
and and
exceptional exceptional 2002
items items Total
(pound)m (pound)m (pound)m
(audited) (audited) (audited)
Operating profit (loss) 191.5 (136.5) 55.0
Depreciation (see note 9) 81.1 - 81.1
Amortization of goodwill
and other intangible fixed
assets (see note 8) 0.1 118.3 118.4
Amortization of government grants (0.1) - (0.1)
Deferred revenue released (0.7) - (0.7)
Decrease (increase) in stock 9.9 - 9.9
Decrease (increase) in debtors 77.9 22.3 100.2
(Decrease) increase in creditors (79.7) - (79.7)
Provision (utilized) provided, net (0.3) (34.1) (34.4)
Net cash inflow (outflow)
from operating activities 279.7 (30.0) 249.7
----------------------------------------------------------------------
Before
goodwill Goodwill
and 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 9) 64.1 7.0 71.1
Amortization of goodwill
and other intangible fixed
assets (see note 8) - 44.3 44.3
Amortization of government grants (0.1) - (0.1)
Deferred revenue released (4.2) - (4.2)
Decrease (increase) in stock (43.1) - (43.1)
Decrease (increase) in debtors (23.4) - (23.4)
(Decrease) increase in creditors 64.1 - 64.1
Provision (utilized) provided, net 0.3 (162.9) (162.6)
Net cash inflow (outflow)
from operating activities 217.9 (179.0) 38.9
----------------------------------------------------------------------
b) Analysis of changes in net debt
As at As at
July 1 June 30
2001 Cash flow 2002
(pound)m (pound)m (pound)m
(audited) (audited) (audited)
Overnight deposits 91.9 (53.2) 38.7
Other cash 61.7 (50.6) 11.1
153.6 (103.8) 49.8
----------------------------------------------------------------------
Short-term deposits 70.0 (69.5) 0.5
Cash at bank and in hand 223.6 (173.3) 50.3
----------------------------------------------------------------------
Debt due after more than one year (1,759.1) 190.0 (1,569.1)
Finance leases (11.0) 1.7 (9.3)
Total debt (1,770.1) 191.7 (1,578.4)
----------------------------------------------------------------------
Total net debt (1,546.5) 18.4 (1,528.1)
----------------------------------------------------------------------
Notes
17. Notes to consolidated cash flow statement (continued)
c) Reconciliation of net cash flow to movement in net debt
Notes 2002 2001
(pound)m (pound)m
(audited) (audited)
(Decrease) increase in cash (103.8) 41.1
Decrease in short-term deposits (69.5) (85.0)
Cash outflow (inflow) resulting from
decrease (increase) in debt and
lease financing 191.7 (357.6)
Decrease (increase) in net debt 18.4 (401.5)
---------------------------------------------------------------------
---------------------------------------------------------------------
Net debt at beginning of year (1,546.5) (1,145.0)
Net debt at end of year 17b (1,528.1) (1,546.5)
---------------------------------------------------------------------
d) Major non-cash transactions 2002 Impairment of investment in KirchPayTV Effective December 31, 2001, the Group wrote down the carrying value of its investment in KirchPayTV to nil (see note 10). The write-down resulted in a net non-cash exceptional charge to the profit and loss account of (pound)971.4 million. 2001 Acquisition of 67.5% of BiB During 2001, the Group acquired a further 67.5% of BiB, 47.6% on May 9, 2001 and 19.9% on June 28, 2001, increasing the Group's interest to 100%. 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 or loan notes, with a fair value of (pound)253.2 million, payable 18 months after the date of acquisition. Acquisition of 100% of SIG In July 2000, the Group acquired 100% of SIG. 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 million. 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 In May 2001, the Group acquired the remaining 5% minority interest in WAP TV. 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. 18. EBITDA EBITDA (Earnings before interest, taxation, 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, 2002 have been extracted from the statutory accounts of British Sky Broadcasting Group plc for the year ended June 30, 2002, 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 30, 2002. The preliminary announcement was approved by the Board of Directors on July 30, 2002. The profits statements for the three months ended June 30, 2002 and June 30, 2001 are unaudited. The profits statement for the year ended June 30, 2001 has been extracted from the statutory accounts of British Sky Broadcasting Group plc for the year ended June 30, 2001, which have been filed with the registrar of Companies, on which the auditors gave an unqualified report. |
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