BT 2001 Annual Report Download - page 89

Download and view the complete annual report

Please find page 89 of the 2001 BT annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 160

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144
  • 145
  • 146
  • 147
  • 148
  • 149
  • 150
  • 151
  • 152
  • 153
  • 154
  • 155
  • 156
  • 157
  • 158
  • 159
  • 160

5. Operating costs (continued)
The operating costs for the year ended 31 March 2001 on page 88, include the following amounts relating to acquisitions made in
the year.
2001
£m
Total staff costs 65
Depreciation 76
Amortisation of intangibles 8
Payments to telecommunications operators 138
Other operating costs 246
Total operating costs 533
6. Group’s share of operating profit (loss) of associates and joint ventures
The group’s share of operating pro¢t (loss) of associates and joint ventures comprised:
2001
£m
2000(b)
£m
1999(b)
£m
Joint ventures:
Continuing (377) (124) (84)
Acquisitions (8) ––
Discontinued or subsequently wholly acquired (381) (303) (258)
(766) (427) (342)
Associates:
Continuing 168 41 –
Acquisitions 201 (14) –
369 27 –
Group’s share of operating loss of associates and joint ventures (a) (397) (400) (342)
(a) Includes:
Exceptional item relating to impairment of goodwill 200 ––
Exceptional item relating to write off of subscriber acquisition costs 132 ––
Amortisation of goodwill arising in joint ventures and associates 185 84 17
(b) Prior years’ figures have been restated to provide comparative information for joint ventures discontinued or
subsequently wholly acquired in the year ended 31 March 2001.
7. Profit on sale of fixed asset investments and group undertakings
In November 2000, the group sold its 34% stake in sunrise communications, its joint venture in Switzerland, to a fellow
shareholder for a consideration of »464 million, on which a realised pro¢t of »454 million has been recognised. In December 2000,
BT sold o¡ part of its Aeronautical and Maritime division at a pro¢t of »46 million. Reductions in BT’s holdings in I.Net SpA
and British Interactive Broadcasting Limited resulted in gains of »38 million and »25 million, respectively. Other gains during
the year totalled »56 million. All these items have been classi¢ed as exceptional in the year ended 31 March 2001.
In August 1999, the group sold BT Communications Services KK to Japan Telecom for a consideration of »170 million, on
which a realised pro¢t of »80 million has been recognised. In February 2000, BT’s photonics research facility was sold at a pro¢t
of »35 million. Other gains during the year totalled »11 million. All these items have been classi¢ed as exceptional in the year
ended 31 March 2000.
In September 1998, the group completed the sale of its interest in MCI for »4,159 million at a pre-tax pro¢t of »1,133 million,
after taking into account goodwill of »2,214 million originally written o¡ on the acquisition of the group’s interest in MCI in
September 1994. A provision for impairment of »26 million against another ¢xed asset investment has been o¡set against this
pro¢t giving a net gain of »1,107 million. These two items have been classi¢ed as exceptional in the year ended 31 March 1999.
With the exception of Concert Communications (see note 16), the subsidiary undertakings disposed of in the years ended
31 March 2001, 2000 and 1999 had a negligible e¡ect on the group’s operating pro¢t and cash £ows and their net assets were
immaterial to the group’s ¢nancial position.
BT Annual report and Form 20-F 89