BT 2003 Annual Report Download - page 95

6. Group’s share of operating profit (loss) of associates and joint ventures
The group’s share of operating profit (loss) of associates and joint ventures comprised:
2003
£m
2002
£m
2001
£m
Joint ventures:
Continuing activities 119 (1,483) (509)
Discontinued activities –19 (257)
119 (1,464) (766)
Associates:
Continuing activities 210 40 (22)
Discontinued activities –43 391
210 83 369
Group’s share of operating profit (loss) of associates and joint ventures
a
329 (1,381) (397)
a
Includes:
Exceptional costs relating to the impairment of goodwill –433 200
Exceptional costs relating to the impairment of investments and (release) charge of related exit costs (150) 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 253 185
7. Profit on sale of fixed asset investments and group undertakings
In the year ended 31 March 2003, disposals of subsidiary undertakings resulted in losses of £9 million,
the consideration received in relation to these disposals was £3 million.
In January 2003, the group sold its 26% interest in Cegetel Groupe SA to Vivendi Universal SA for
consideration of e4,000 million (£2,603 million) in cash. The profit on disposal was £1,509 million, before
the recognition of an exceptional interest charge of £293 million on closing out fixed interest rate swaps following
receipt of the sale proceeds, and includes a write-back of £862 million of goodwill taken directly to reserves
before April 1998.
In October 2002, the group sold its 2% interest in Mediaset for consideration of £87 million in cash.
The profit on disposal was £14 million.
In May 2002 and November 2002, the group sold its remaining holding of shares in BSkyB, received for
the exchange of the residual interest in British Interactive Broadcasting, for consideration of £192 million
recognising a profit of £131 million.
In December 2002, the group sold its interest in Blu SpA for consideration of £29 million. The profit on
disposal was £19 million.
Other gains of £39 million and losses of £12 million were recognised during the year ended 31 March 2003.
These gains and losses included a write-back of £7 million of goodwill taken directly to reserves before April 1998.
The consideration received in relation to these disposals was £114 million.
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 profit of £1,128 million was realised. This profit 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 in the year ended 31 March 2002 resulted in gains on disposal
of £10 million.
A profit 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 profit 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 profit 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 profit on disposal was £844 million.
Other gains of £135 million and losses of £80 million were also recognised during the year ended 31 March
2002. 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.
Notes to the financial statements
94 BT Annual Report and Form 20-F 2003