BT 2002 Annual Report Download - page 94

6. Group's share of operating pro®t (loss) of associates and joint ventures
The group's share of operating pro®t (loss) of associates and joint ventures comprised: 2002
£m
2001
£m
2000
£m
Joint ventures:
Continuing activities (1,483) (509) (211)
Discontinued activities 19 (257) (216)
(1,464) (766) (427)
Associates:
Continuing activities 40 (22) (2)
Discontinued activities 43 391 29
83 369 27
Group's share of operating loss of associates and joint ventures
a
(1,381) (397) (400)
a
Includes:
Exceptional costs relating to the impairment of goodwill 433 200 ±
Exceptional costs relating to the impairment of investments and related exit costs 780 ± ±
Exceptional costs relating to the Concert unwind 81 ± ±
Exceptional costs relating to write off of subscriber acquisition costs ±132 ±
Amortisation of goodwill arising in joint ventures and associates 53 185 84
7. Pro®t on sale of ®xed asset investments and group undertakings
In June 2001, the group sold its interest in the Yell Group comprising mainly the Yellow Pages unit of BT, Yellow Pages
Sales Limited and Yellow Book USA Inc. and its subsidiary undertakings. The consideration for this sale was £1,960 million
and a pro®t of £1,128 million was realised. This pro®t includes a write-back of £9 million of goodwill taken directly to
reserves before April 1998.
In December 2001, the group sold its wholly owned subsidiary Clear Communications Limited, which operates in New
Zealand, for consideration of £119 million. A loss of £126 million was recognised on this sale, of which £45 million relates to
goodwill taken directly to reserves before April 1998.
Other disposals of subsidiary companies resulted in gains on disposal of £10 million.
A pro®t of £120 million was recognised for the exchange of the residual interest in British Interactive Broadcasting for
BSkyB shares in May 2001. The consideration received was £241 million of BSkyB shares and the pro®t recognised relates
to those shares that were marketable.
In June 2001, the group sold its effective 20% interest in Japan Telecom Co. Limited and its 20% interest in J-Phone
Communications Co. Limited to Vodafone plc for £3,075 million in cash. Under the sale agreement, the group also sold
shares representing 4.9% of J-Phone Communications Co. Limited obtained by exercising an option in June 2001 for £634
million in cash. The realised pro®t on the sale of the 20% interest in Japan Telecom Co. Limited and J-Phone
Communications Co. Limited, and the sale of the 4.9% share of J-Phone Communications Co. Limited obtained through
the exercise of options was £2,358 million.
In June 2001, the group sold its 17.81% interest in Airtel Movil SA to Vodafone plc for £1,084 million in cash. The pro®t
on disposal was £844 million.
Other gains of £135 million and losses of £80 million were also recognised during the year. These gains and losses
included a write-back of £14 million of goodwill taken directly to reserves before April 1998. The consideration received in
relation to these disposals was £860 million, including deferred and non-cash amounts of £63 million.
In November 2000, the group sold its 34% stake in sunrise communications, its joint venture in Switzerland, to a fellow
shareholder for consideration of £464 million, on which a realised pro®t of £454 million has been recognised. In December
2000, BT sold off 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 ended 31 March 2001 totalled £56 million.
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 ended 31 March 2000 totalled £11 million.
8. Pro®t on sale of property ®xed assets
In December 2001, as part of a wider property outsourcing agreement, the group entered into a sale and leaseback
transaction with Telereal, a joint venture partnership formed by Land Securities Trillium and The William Pears Group. Under
the terms of the transaction, BT transferred substantially all of the group's interest in most of its UK freehold and long
leasehold properties and also its obligations in respect of rack rented properties to Telereal for cash consideration of
£2,380 million. Of the total pro®t in the year from the sale of property, £1,019 million relates to this transaction. BT has
rented the majority of these properties from Telereal for a thirty-year term. Telereal will also be providing facilities
Notes to the financial statements
BT Group Annual Report and Form 20-F 2002 93