Vodafone 2002 Annual Report Download - page 12

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Vodafone Group Plc Annual Report & Accounts and Form 20-F Information on the Company10
g) Disposal of holding in Ruhrgas AG On 30 October 2001, the Group
announced that it had reached agreement with E.ON AG for the sale of the
Group’s 23.6% stake in Bergemann GmbH, through which it held an 8.2%
stake in Ruhrgas AG. Completion of the transaction is conditional on approval
from German competition authorities.
Disposal of Shinsegi Telecom, Inc. On 24 August 2001, the Group
announced that agreement had been reached to sell its 11.7% equity stake
in Shinsegi Telecom, Inc. for an undisclosed amount to SK Telecom, Ltd.
The value of net assets disposed of represented less than 1% of the Group’s
net assets.
Formation of Verizon Wireless
On 3 April 2000, the first stage of the transaction for the combination of the US
cellular operations of the Company, Bell Atlantic and GTE was completed. The
combined entity, which initially consisted of the US cellular operations of AirTouch
and Bell Atlantic, was launched as Verizon Wireless. Following completion of the
merger of Bell Atlantic and GTE to form Verizon Communications, the second
stage of the transaction was completed by the contribution of the US cellular
operations of GTE to Verizon Wireless on 10 July 2000, creating a nationwide
network on a single digital technology, covering almost 90% of the US population
and 96 of the top 100 mobile telecommunications markets within the United
States. The Group owns 45% of Verizon Wireless.
The formation of Verizon Wireless resulted in net proceeds to the Group of
approximately £2.5 billion relating to the assumption of Group debt agreed with
the other parties. Further proceeds of £2.0 billion have been realised to date
following the disposal of overlapping properties in the US, such disposals being
a condition of the regulatory approval of the transaction.
Information on the Company continued
Business Overview
Revenues and operating income
The following table shows consolidated Group turnover and consolidated total Group operating (loss)/profit for the three years ended 31 March 2002, by geographic
region.
Years ended 31 March
Group turnover Total Group operating (loss)/profit
2002 2001 2000 2002 2001 2000
£m £m £m £m £m £m
Mobile telecommunications:
Northern Europe 5,432 4,511 3,723 757 618 830
Central Europe 4,177 4,031 6 (4,833) (4,991) (215)
Southern Europe 6,743 4,479 877 (1,971) (2,076) 146
Europe 16,352 13,021 4,606 (6,047) (6,449) 761
Americas 12 9 2,585 (555) (210) (98)
Asia Pacific 4,072 713 565 (198) (92) 8
Middle East and Africa 306 308 117 131 181 127
20,742 14,051 7,873 (6,669) (6,570) 798
Other operations:
Europe 998 953 –(4,733) (419) –
Asia Pacific 1,105 ––(432) ––
22,845 15,004 7,873 (11,834) (6,989) 798
Other operations analysed in the above table principally comprise the results of
Arcor, Mannesmann’s fixed line business in Germany, Cegetel of France, Vizzavi
Europe, the Group’s consumer portal joint venture with Vivendi Universal, and
Japan Telecom.
Total Group operating losses of £11,834 million for the year ended 31 March
2002 (2001: £6,989 million, 2000: profit of £798 million) including exceptional
operating costs of £5,408 million (2001: £320 million, 2000: £30 million) and
goodwill amortisation of £13,470 million (2001: £11,873 million, 2000: £1,710
million). See note 3 to the Consolidated Financial Statements, “Segmental
analysis”, for a further analysis of business segment information.