Twenty-First Century Fox 2002 Annual Report Download - page 54

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About the Concise Financial Report
The financial statements and disclosures in the Concise Financial Report on pages 55 to 67 have been derived from The News
Corporation Limited’s Full Financial Report for the year ended 30 June, 2002. A more comprehensive analysis of the Company’s
financial performance, financial position and financing and investing activities is given in the Full Financial Report.
A copy of the Full Financial Report, including the Independent Audit Report on the Full Financial Report, is available and will be sent to
any shareholder without charge on request by phoning Australia 61 2 9288 3233, United Kingdom 44 207 782 6000 or United States
1 212 852 7059. All reports can be accessed via the internet at www.newscorp.com.
Statement of Financial Performance
Operating income for the year ended 30 June, 2002 was $3.5 billion, an increase of $0.4 billion, or 15% over the previous year. This
result was driven by strong performances from the Filmed Entertainment and Cable Network Programming segments. The Filmed
Entertainment segment produced a number of successful releases during the year including Planet of the Apes and Ice Age. The Cable
Network Programming segment increased revenue and profitability due principally to continued growth in subscribers at both Fox
News Channel and Fox Sports Networks. Offsetting these increases were lower operating profits at the Television segment and the
Newspaper segment. The Television segment suffered a decline in operating income due to ratings softness at Fox Broadcasting
Company, increased programming costs and a weak advertising market. The Newspaper segment also reported lower advertising
revenues as a result of local market weakness in the advertising sector.
Net losses from associated entities for the year increased to $1,434 million from $249 million in 2001. Net losses from associated
entities consist of operating losses from associated entities of $314 million and $162 million for the years ended 30 June, 2002 and
30 June, 2001 respectively. The increased operating losses were due to the unfavourable foreign exchange movements in our Latin
American pay television platforms, losses recognised from our Italian pay television platform Stream S.p.A (“Stream”) and reduced
profitability of Fox Sports Domestic Cable Networks primarily due to both lower revenues and higher costs at Madison Square
Garden, an entertainment company owned by Regional Programming Partners. Additionally, net losses from associated entities
include net charges for Other Items of $1,120 million and $87 million for the years ended 30 June, 2002 and 30 June, 2001 respectively.
Associated entities Other Items for the year ended 30 June, 2002 primarily relate to the Company’s recorded share of British Sky
Broadcasting Group plc (“BSkyB”) write-off of its investment in KirchPayTV.
The Company recorded a net loss from Other Items of $12.0 billion in 2002. This primarily reflected write downs in the Company’s
carrying value of its investments in Gemstar-TV Guide International, Inc. (“Gemstar”), Stream and KirchMedia, and a write down
of US national sporting contracts for Major League Baseball, NASCAR and the National Football League and non-US Cricket
programming rights. These write downs were partially offset by a gain on the sale of the Company’s interest in Fox Family
Worldwide.
The net loss attributable to members of the parent entity was $12.0 billion.
53
Discussion and Analysis of the Financial Statements
FOR THE YEAR ENDED 30 JUNE, 2002
THE NEWS CORPORATION LIMITED
Annual Report 2002