Twenty-First Century Fox 2004 Annual Report Download - page 74

Consolidated
2004 2003 2002
A$ million
Note 5 Associated entities
The Group’s share of the profit (loss) after income
tax of its associated entities consist principally of:
British Sky Broadcasting Group plc (a) 315 132 (51)
Sky Brasil (formerly Net Sat Servicos Ltda) (52) (56) (120)
Innova, S.de R.L de C.V. (Mexico) (8) (37) (92)
FOXTEL (27) (15) (15)
Stream, S.p.A. (b) (294) (66)
Queensland Press Limited 42 33 27
Other associated entities 97 78 3
367 (159) (314)
Other items after income tax (c) (45) 70 (1,120)
Net profit (loss) from associated entities 322 (89) (1,434)
Net profit (loss) from associated entities comprises:
Attributable to joint venture entities 10 (316) (126)
Attributable to other associated entities 312 227 (1,308)
Net profit (loss) from associated entities 322 (89) (1,434)
Net profit (loss) from associated entities comprises:
Profit (loss) before income tax 549 (62) (1,388)
Income tax (227) (27) (46)
Net profit (loss) from associated entities 322 (89) (1,434)
(a) At 30 June, 2002, the Group’s investment in British Sky Broadcasting Group plc (“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.
(b) In April 2003, the Group acquired a controlling interest in Stream, which concurrently acquired all of the outstanding
stock of Telepiu, a majority-owned subsidiary of Vivendi Universal. Both Stream and Telepiu were Digital
Broadcasting Satellite Television businesses 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.
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. As a result of the acquisition,
commencing 30 April, 2003, the Group ceased to equity account its share of Stream’s results.
(c) Associated entities’ Other items for the year ended 30 June, 2004 primarily relate to the Group’s share of the write down
of certain tax assets and legal settlement costs which were partially offset by the gain on the sale of certain
investments by associated entities.
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 BSkyB of
its investment in KirchPayTV.
72
NEWS CORPORATION CONCISE REPORT 2004
Notes to and forming part of the Concise Financial Report
(continued)
for the year ended 30 June, 2004