Twenty-First Century Fox 2003 Annual Report Download - page 71

69The News Corporation Limited
Notes to and forming part of the Concise Financial Report (continued)
FOR THE YEAR ENDED 30 JUNE, 2003
➤ NOTE 5Associated entities
The Group’s share of the profit (loss) after
income tax of its associated entities consist principally of
British Sky Broadcasting Group plc 132 (51) (76)
Stream, S.p.A (a) (294) (66)
Sky Latin America
Sky Brasil (formerly Net Sat Servicos Ltda) (56) (120) (101)
Innova, S.de R.L de C.V. (Mexico) (37) (92) (52)
Other (41) (78) (63)
Fox Sports Cable Networks 44 33 89
FOXTEL (15) (15) (11)
ESPN Star Sports 3(11) (23)
Other associated entities 105 86 75
(159) (314) (162)
Other items after income tax (b) 70 (1,120) (87)
Net loss from associated entities (89) (1,434) (249)
Net loss from associated entities comprises:
Attributable to joint venture entities (316) (126) (105)
Attributable to other associated entities 227 (1,308) (144)
Net loss from associated entities (89) (1,434) (249)
Net loss from associated entities comprises:
Loss before income tax (62) (1,388) (226)
Income tax (27) (46) (23)
Net loss from associated entities (89) (1,434) (249)
(a) In April 2003, the Group acquired a controlling interest in Stream S.p.A (“Stream”), which concurrently acquired all of the
outstanding stock of Telepiu, S.p.A (“Telepiu”), a majority-owned subsidiary of Vivendi Universal and Stream’s only direct competitor
in the Direct Broadcast Satellite Television business in Italy. The aggregate consideration paid for Telepiu consisted of €438 million
($711 million) in cash and the assumption of €350 million ($602 million) in indebtedness. The excess purchase price over the fair
value of the net assets acquired of $1,524 million is reported within publishing rights, titles and television licences.
Telepiu has been merged with Stream, and the combined platform has been renamed SKY Italia, which is owned 80.1% by the Group
and 19.9% by Telecom Italia. The results of SKY Italia have been included in the Group’s Consolidated Statement of Financial
Performance from 30 April, 2003, the date of acquisition, and is presented in a new segment, Direct Broadcast Satellite Television.
As a result of the acquisition, commencing 30 April, 2003, the Group ceased to equity account its share of Stream’s results.
(b) The 2003 Other items primarily reflect the Group’s share of a gain arising from the sale of the publishing assets of Independent
Newspapers Limited, a New Zealand media company. This is partially offset by a charge to reflect the permanent diminution of the
assets of Sky Multi-Country Partners, a Latin American DTH platform, due to the sustained losses of the platform and the decision of
the partners to limit future financial support of this business.
The 2002 Other items primarily represents the Group’s equity accounted share of the write off by its associate British Sky
Broadcasting Group plc (“BSkyB”) of its investment in KirchPayTV.
At 30 June, 2002, the Group’s investment in BSkyB was recorded at zero, and as a result the Group ceased to equity account its
share of BSkyB’s results. In fiscal 2002, the Group did not record $135 million of its share of BSkyB’s losses. Subsequently, the
Group recommenced equity accounting its share of BSkyB’s results from 11 November, 2002 after not recording $135 million of
its share of BSkyB’s profit.
Consolidated
2003 2002 2001
A$ million