FORM 6-K
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Report of Foreign Issuer
Pursuant to Rule 13a - 16 or 15d - 16 of
the Securities Exchange Act of 1934
For the month of May 2004
12 May 2004
BRITISH SKY BROADCASTING GROUP PLC
(Name of Registrant)
Grant Way, Isleworth, Middlesex, TW7 5QD England
(Address of principal executive offices)
Indicate by check mark whether the registrant files or will file annual reports
under cover of Form 20-F or Form 40-F
Form 20-F X Form 40-F
Indicate by check mark whether the registrant by furnishing the information
contained in this Form is also thereby furnishing the information to the
Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934
Yes No X
If "Yes" is marked, indicate below the file number assigned to the registrant in
connection with Rule 12g3-2(b): Not Applicable
EXHIBIT INDEX
Exhibit
EXHIBIT NO. 1 Press release of British Sky Broadcasting Group plc
announcing 3rd Quarter Results released on 12 May 2004
12 May 2004
BRITISH SKY BROADCASTING GROUP PLC
Results for the nine months ended 31 March 2004
Sky reports record operating profit of GBP438 million - an increase of 76%
- Net DTH subscriber growth in the quarter of 66,000 to 7.3 million
- Sky+ target reached three months early as customer numbers increase by
72,000 in the quarter to 322,000
- Total revenue increases by 16% to GBP2,697 million
- Operating profit before goodwill and exceptional items increases by 76%
to GBP438 million
- Net operating cash inflow increases by 131% to GBP518 million
- Profit after tax increases almost tenfold: from GBP28 million to GBP243
million
- Earnings per share before goodwill and exceptional items of 13.2 pence,
up 5.9 pence on the comparable period
James Murdoch, Chief Executive of British Sky Broadcasting Group plc, said:
"Sky continues to deliver improvement in its financial performance, and remains
on track to hit all operational and financial targets. Slower DTH subscriber
growth during the quarter reflected our decision to pull back on platform
marketing in a seasonally quiet period."
Enquiries:
Analysts/Investors:
Neil Chugani Tel: 020 7705 3837
Andrew Griffith Tel: 020 7705 3118
E-mail: investor-relations@bskyb.com
Press:
Julian Eccles Tel: 020 7705 3267
Robert Fraser Tel: 020 7705 3036
E-mail: corporate.communications@bskyb.com
Finsbury:
Alice Macandrew Tel: 020 7251 3801
A conference call for UK and European analysts and investors will be held at
8.30 a.m. (BST) today. To register for this, please contact Silvana Marsh at
Finsbury on +44 20 7251 3801. A live webcast of this call will be available on
Sky's corporate website, http://www.sky.com/corporate and available to replay.
There will be a separate conference call for US analysts and investors at 10.00
a.m. (EST) today. Details of this call have been sent to US institutions and can
be obtained from John Sutton at Taylor Rafferty on +1 212 889 4350.
OPERATING REVIEW
At 31 March 2004, the total number of direct-to-home ("DTH") digital satellite
subscribers in the UK and Ireland was 7,274,000, representing a net increase of
66,000 subscribers in the three months to 31 March 2004 ("the quarter"). Sky
remains on track to achieve its target of eight million DTH subscribers by the
end of calendar year 2005. Following only minimal above-the-line marketing
during the quarter, a new campaign was launched on the 26th March 2004, the
benefits of which will begin to be felt during the fourth quarter.
The Group's third quarter performance reflects our decision to avoid adding
subscribers at an incrementally high cost, while we assessed the efficacy of our
second quarter Christmas marketing push, in order to progress towards our medium
term targets while continuing to provide superior financial returns to
shareholders.
The Group's strategy is clear: 1) to drive demand for pay television services in
the UK and Ireland, and to continue to put a competitive customer proposition
into the market to meet that demand; and 2) to manage the pace of growth to
deliver continued margin improvement, long term market positioning, and
sustained profitability.
Management remains focused on the ongoing operational execution of this strategy
and is confident that its medium term targets will be met.
The number of Sky+ customers continued to grow strongly, increasing by 72,000 in
the quarter to 322,000, achieving Sky's initial target of 315,000 Sky+ customers
three months early. Sky+ continues to penetrate the existing subscriber base as
well as driving new subscribers to Sky with approximately 16% of new Sky+
customers, since 1 October 2003, new to Sky digital.
As a direct consequence of the growth in Sky+ penetration, the number of
multi-room (formerly referred to as Extra Digibox) subscribers increased in the
quarter to 270,000, almost double the number at 31 March 2003. With almost three
television sets in every Sky digital home, growth of multi-room subscription
penetration represents a significant long-term opportunity for the Group.
Annualised DTH churn for the nine months to 31 March 2004 ("the period") was
9.4%, the same rate as in the six months to 31 December 2003, despite the price
rise in the quarter.
Annualised average revenue per DTH subscriber ("ARPU") in the quarter was
GBP382, an increase of GBP18 over the three months to 31 March 2003 and GBP13 on
the three months to 31 December 2003. This reflects the changes to UK and
Ireland retail pricing that took effect from 1 January 2004. At just over GBP9
per week for the top tier Sky World package and GBP4.50 per week for the Family
Pack with over 200 basic channels, Sky remains excellent value for money.
Following a strong performance in calendar year 2003, and aided by the continued
growth of Sky digital and other platforms, multichannel television networks
continued to take viewing share from the main terrestrial channels, BBC1 and
ITV1. Multichannel television's combined share of total audience increased by 6%
on the same quarter last year and, during March, multichannel attracted a bigger
combined audience across all UK television homes than either BBC1 or ITV1.
The third quarter produced a strong set of audience figures for Sky Sports. UEFA
Champions League Football continued to perform well with a record in-home
audience of almost three million viewers for Sky Sports' exclusive live coverage
of the quarter final first leg between Chelsea and Arsenal. England's successful
cricket tour of the West Indies once again proved to be very popular with
viewers. An outstanding performance by the England team and the beneficial time
differences helped Sky Sports record some of its best cricket audiences for
almost two years. Record viewing levels were registered for sports as varied as
darts, NFL and Spanish football, and recently negotiated contracts for Rugby
Union's European competition, the Heineken Cup, and Rugby League's Super League
generated robust viewership across the quarter.
On 16 April 2004, Sky announced that it had won exclusive live rights to the
opening away matches for England and Wales in qualifying for the Football World
Cup 2006. These live matches, together with another 15 World Cup Qualifiers
already in Sky Sports' schedules, will ensure a wealth of live international
football on Sky over the next four years.
At the Royal Television Society Journalism Awards on 24 February 2004, Sky News
was named News Channel of the Year for the third successive year and won an
innovation award for its coverage of the Hutton Inquiry and the Soham trial.
Following on from this success, on 9 March 2004, Five announced that it had
awarded its news supply contract to Sky News. From January 2005, Sky News will
provide Five's lunchtime and evening bulletins for a period of five years,
replacing the current supplier ITN. Sky News Ireland began its new service on 10
May 2004.
As part of an enhanced schedule, Sky One launched several new programme series
during the quarter including the highly acclaimed 'Nip/Tuck', the third season
of the hit series '24' and the controversial 'There's Something About Miriam,'
each proving very popular with viewers.
Following major enhancements to its service in November 2003, Sky Movies
increased viewing share by 6% on the same quarter last year across all UK
television homes. Premieres on Sky Movies during the quarter included
Spider-Man, Minority Report, Men in Black II and 8 Mile.
FINANCIAL REVIEW
The sustained momentum of Sky's business model continues to deliver strong
profit growth at all levels. Operating profit before goodwill and exceptional
items for the period increased by 76% on the nine months to 31 March 2003 ("the
comparable period") to GBP438 million, more than that reported for the whole of
the previous financial year. Profit after tax increased to GBP243 million from
GBP28 million for the comparable period.
Total revenues grew by 16% on the comparable period to GBP2,697 million, whilst
operating expenditure before goodwill and exceptional items increased by only
9%, generating an operating profit margin before goodwill and exceptional items
of 16%, an improvement of five percentage points on the comparable period.
DTH revenues for the period increased by 14% from GBP1,726 million for the
comparable period to GBP1,973 million. This is principally due to the 11% growth
in the average number of DTH subscribers and the 4% increase in DTH ARPU.
Advertising revenue continued to outperform the advertising market, recording an
increase of 9% on the comparable period to GBP223 million. All share deals with
advertising agencies for calendar year 2004 were completed during the quarter
and Sky remains confident of continuing to outperform the market during this
calendar year.
Wholesale revenues were GBP160 million for the period, an increase of 10% on the
comparable period. This was principally driven by the one-off receipt of audit
monies from NTL as disclosed in the first quarter, increases to wholesale prices
that took effect in January 2004 and the distribution of Sky Sports Extra to
dual sports digital cable homes for the first time.
Interactive revenues increased by 50% on the comparable period to GBP219
million, driven by growth in both SkyBet and Sky Active revenues, to GBP133
million and GBP86 million respectively. Sky Active has further enhanced its
offering with the launch of services via the new Sky Vegas Live channel on 3
March 2004 and a National Lottery service on 1 April 2004 allowing subscribers
to buy tickets for the Wednesday and Saturday Lotto draws using their Sky
digital remote control.
Programming costs for the period increased by GBP80 million on the comparable
period to GBP1,248 million. This was principally due to increased sports rights
costs, including the addition of UEFA Champions League football this season;
increased subscriber volumes and contractual rates in movies and third party
channel costs, partially offset by savings resulting from the continued weakness
of the US dollar. However, part of this GBP80 million increase was non-recurring
due to an evaluation of entertainment stock balances during the quarter. This
resulted in the acceleration of certain amortisation charges totalling GBP16
million, in accordance with the Group's policy, in respect of programme stock
accounting.
Other operating costs before goodwill increased by GBP97 million on the
comparable period to GBP1,011 million. This principally comprises a GBP56
million increase in betting costs, which is directly related to the significant
growth in SkyBet revenue; a GBP37 million increase in subscriber management
costs, reflecting the continued growth of Sky+ and multi-room subscription
penetration; and a GBP10 million increase in administration costs before
goodwill and exceptional items due mainly to technology, facilities and
compliance obligation costs. These increases were partially offset by a GBP13
million reduction in marketing costs as a result of lower marketing activity in
the quarter and consequently lower subscriber additions.
Earnings before interest, tax, depreciation and amortisation ("EBITDA") before
goodwill and exceptional items increased by 61% on the comparable period to
GBP518 million.
After deducting the Group's share of operating losses of joint ventures, which
reduced to GBP4 million in the quarter, and net interest payable of GBP63
million, the Group made a profit before tax, goodwill and exceptional items of
GBP371 million in the period.
During the quarter, BSkyB Home Shopping Limited (a wholly owned subsidiary of
the Group) sold its 20% shareholding in QVC (UK) Limited, operator of QVC - The
Shopping Channel, to a wholly owned subsidiary of QVC, Inc. for cash
consideration of GBP49 million. The consideration was received during the
quarter and the sale generated a profit on disposal of GBP49 million which has
been recorded as an exceptional non-operating item.
Other exceptional items in the period include a profit on disposal of GBP2
million and a provision release of GBP33 million - both relating to the sale of
the Group's 9.9% shareholding in Manchester United plc - and a GBP9 million
provision against the Group's remaining football club investments as disclosed
in the second quarter.
The total net tax charge for the period of GBP116 million includes a current tax
charge of GBP98 million, a deferred tax charge of GBP21 million, offset by a
GBP3 million net adjustment in respect of prior years. Excluding the effect of
goodwill, joint ventures and exceptional items, the Group's underlying effective
tax rate on ordinary activities was 30% during the period.
After removing the effect of deferred tax, the Group's share of joint ventures'
tax and prior year adjustments, the mainstream corporation tax liability for the
period was GBP95 million. The Group utilised all its remaining advanced
corporation tax to reduce this to GBP41 million and, in accordance with the
quarterly instalment regime, GBP17 million was paid by 31 March 2004 with the
balance being due for payment by 31 December 2004.
The profit after tax for the period was GBP243 million, generating earnings per
share before goodwill and exceptional items of 13.2 pence compared to 7.3 pence
(7.5 pence restated for the application of UITF 38) for the comparable period.
Operating cashflow generation continued to be strong during the period with an
inflow of GBP518 million compared to GBP396 million in the comparable period.
The cash conversion ratio remains healthy with 118% of operating profit before
goodwill and exceptional items converted to operating cash inflow. After taking
into account cash outflows principally comprising interest payments of GBP76
million; capital expenditure of GBP96 million; corporation tax of GBP41 million
(which includes GBP21 million relating to the 2002/03 financial year and GBP3
million consortium relief), and the one-off receipts from the sale of the
Group's investments in QVC (UK) Limited, Manchester United plc and Chelsea
Village plc, the Group reduced net debt by GBP443 million from GBP1,105 million
at 30 June 2003 to GBP662 million at 31 March 2004.
During the quarter the Group purchased a vacant freehold building at its
Osterley site. The building will be fully refurbished and will provide office
accommodation as well as three new studios for the award winning Sky News
channel, one of which will be dedicated to the new Five news supply contract
awarded in the period. The total capital expenditure required for the new
building and the associated refurbishment is estimated at approximately GBP40
million, of which GBP9 million had been incurred by 31 March 2004.
CORPORATE
On 11 May 2004, after more than nine years on the board, John Thornton resigned
his position as a non-executive director of the Company. Mr Thornton had served
on the Board of the Company since its initial public offering in December 1994.
On 11 May 2004 the board of the Company on the recommendation of the
Remuneration Committee also approved the terms of James Murdoch's service
contract with the Company, which is to be a twelve month rolling contract,
deemed to have commenced on 27 November 2003.
Mr Murdoch's salary under the contract will be GBP750,000 per annum subject to
annual review, plus an annual relocation and expenses allowance of GBP200,000
per annum which shall be paid for a period of three years. Mr Murdoch will also
be entitled to a discretionary bonus, which will be set by reference to the
achievement of budgetary targets.
Mr Murdoch will also receive an initial award under the Company's LTIP of
450,000 shares. The vesting of 70% of this award shall be subject to internal
performance metrics being outperformed, equally weighting DTH subscriber growth,
EPS Growth and free cash-flow per share, and the vesting of the other 30% will
be subject to TSR performance. The measurement of these performance conditions
will be over a three year period. Mr Murdoch will also be entitled to other
benefits, namely pension benefits, company car, life assurance equal to four
times salary and medical insurance.
The Company received independent advice in relation to the above terms.
On 11 February 2004, the Directors declared an interim dividend of 2.75 pence
per Ordinary Share. This dividend was paid on 23 April 2004 to shareholders of
record on 2 April 2004. The total amount paid was GBP53 million and this will be
recognised in the consolidated cashflow statement during the fourth quarter.
On 8 August 2003, it was announced that Sky had successfully bid for all four
packages of exclusive live UK rights to FA Premier League ("FAPL") football from
the 2004/05 to the 2006/07 seasons. As part of its ongoing investigation into
the sale of rights by the FAPL, the European Commission conducted inquiries into
this most recent auction. On 16 December 2003, the European Commission announced
a provisional agreement with the FAPL and with Sky under which, among other
things, Sky has agreed to offer to sublicense up to eight live games each season
from 2004/05 to 2006/07 to another broadcaster. The European Commission has
since consulted with third parties on this provisional agreement and, following
further discussions, Sky published a notice of invitation to tender for these
games on 23 April 2004. This tender process has now concluded and a separate
announcement by the Group, issued today, has published its conclusions.
Further to the termination of the media rights agreement between attheraces
("ATR") and the Racecourse Association ("RCA") on 29 March 2004, it was
announced, on 30 April 2004, that ATR had reached agreements with four major
racecourse partners, Ascot Racecourse, Chepstow Racecourse Plc (including
Northern Racing), GG Media Limited and Arena Leisure Plc, for televised meetings
in the UK, enabling ATR to relaunch its live UK racing service in June 2004.
Further to this, on 4 May 2004, it was announced that Arena Leisure Plc
("Arena") and British Sky Broadcasting Plc ("BSkyB") had signed a new
Shareholders' Agreement in relation to attheraces Holdings Limited for the
continuation of the ATR business. At the same time as signing this arrangement,
Arena and BSkyB purchased jointly the 33.33% equity stake owned by Channel 4 in
ATR, together with the GBP23 million Loan Notes advanced to ATR by Channel 4,
for a total consideration of up to GBP1.25 million. As a result, ATR is now a
50:50 joint venture between Arena and BSkyB, with provision for racecourses to
become equity holders in due course.
Appendix 1
Subscribers to Sky Channels
Prior Year Opening Prior Quarter
Q3 2002/03 Q4 2002/03 Q2 2003/04 as Q3 2003/04 as
as at as at 30/06/03 at 31/12/03 at 31/03/04
31/03/03
DTH digital 6,712,000 6,845,000 7,208,000 7,274,000
homes 1,2
Total TV homes in 26,055,000 26,154,000 25,955,000 26,010,000
the UK and
Ireland 3,4
Total Sky digital 26% 26% 28% 28%
homes as a
percentage of
total UK and
Ireland TV homes
Cable - UK 3,312,000 3,266,000 3,282,000 3,302,000
Cable - Ireland 604,000 605,000 580,000 575,000
Total Sky pay 10,628,000 10,716,000 11,070,000 11,151,000
homes
DTT - UK 3, 5 1,398,000 1,510,000 2,075,000 2,695,000
Total Sky homes 12,026,000 12,226,000 13,145,000 13,846,000
Total Sky homes as 46% 47% 51% 53%
a percentage of
total UK and
Ireland TV homes
1: Includes DTH subscribers in Ireland (318,000 as at 31 March 2004, 315,000
as at 31 December 2003, 286,000 at 30 June 2003 and 279,000 at 31 March 2003).
2: DTH subscribers includes only primary subscriptions to Sky (no additional
units are counted for Sky+ or Multi-room subscriptions).
3: Total UK homes estimated by BARB and taken from the beginning of the
month following the period end (latest figures as at April 2004). Total Ireland
homes estimated by Nielsen Media Research, conducted on an annual basis in July
(latest figures as at July 2003).
4: 2001 UK Census data was incorporated into the BARB data in January 2004,
resulting in a revised figure for total UK homes.
5: DTT homes estimated by BARB and taken from the beginning of the following
month (latest figures as at April 2004). These figures may include Sky or Cable
homes that already take multichannel TV.
Consolidated Profit and Loss Account for the nine months ended 31 March 2004
2003/2004 2002/2003
Nine Nine
Before months months
goodwill and Goodwill and ended Before goodwill Goodwill and ended
exceptional exceptional 31 March and exceptional exceptional 31 March
items items Total items items Total
as restated* as restated* as restated*
GBPm GBPm GBPm GBPm GBPm GBPm
(unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited)
-------------------------- -- ------------- ------------ ---------- --------------- ------------- ------------
Turnover: Group and
share of joint ventures'
turnover 2,759 - 2,759 2,388 - 2,388
Less: share of joint
ventures' turnover (62) - (62) (57) - (57)
Group turnover 1 2,697 - 2,697 2,331 - 2,331
-------------------------- -- ------------- ------------ ---------- --------------- ------------- ------------
Operating expenses, 2
net (2,259) (87) (2,346) (2,082) (93) (2,175)
-------------------------- -- ------------- ------------ ---------- --------------- ------------- ------------
EBITDA 518 - 518 321 - 321
Depreciation (80) - (80) (72) - (72)
Amortisation - (87) (87) - (93) (93)
-------------------------- -- ------------- ------------ ---------- --------------- ------------- ------------
Operating profit (loss) 438 (87) 351 249 (93) 156
-------------------------- -- ------------- ------------ ---------- --------------- ------------- ------------
Share of joint ventures' (4) (4) 1 - 1
operating results
Profit on disposal of
fixed asset
investments 3(i) - 51 51 - - -
Amounts written back to
(written off) fixed
asset investments, net 3(ii) - 24 24 - (18) (18)
Profit (loss) on
ordinary activities
before interest and
taxation 434 (12) 422 250 (111) 139
-------------------------- -- ------------- ------------ ---------- --------------- ------------- ------------
Interest receivable and
similar income 5 - 5 3 - 3
Interest payable and
similar charges (68) - (68) (93) - (93)
Profit (loss) on
ordinary activities
before taxation 371 (12) 359 160 (111) 49
-------------------------- -- ------------- ------------ ---------- --------------- ------------- ------------
Tax on profit (loss) on
ordinary activities (116) - (116) (21) - (21)
Profit (loss) on
ordinary activities
after taxation 255 (12) 243 139 (111) 28
-------------------------- -- ------------- ------------ ---------- --------------- ------------- ------------
Equity dividends (53) -
Retained profit for the
financial period 190 28
-------------------------- -- ------------- ------------ ---------- --------------- ------------- ------------
Earnings (loss) per
share - basic 13.2p (0.7)p 12.5p 7.3p (5.8p) 1.5p
Earnings (loss) per
share - diluted 13.2p (0.7)p 12.5p 7.2p (5.7p) 1.5p
-------------------------- -- ------------- ------------ ---------- --------------- ------------- ------------
* The results for the nine months ended 31 March 2003 have been restated
following the adoption of UITF abstract 38 "Accounting for ESOP trusts".
Consolidated Profit and Loss Account for the three months ended 31 March 2004
2003/2004 2002/2003
Three Three
Before months Months
goodwill and Goodwill and ended Before goodwill Goodwill and ended
exceptional exceptional 31 March and exceptional exceptional 31 March
items items Total items items Total
as restated* as restated* as restated*
GBPm GBPm GBPm GBPm GBPm GBPm
(unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited)
------------------------- ------------ ------------ ---------- --------------- ------------- ------------
Turnover: Group and share
of joint ventures'
turnover 950 - 950 838 - 838
Less: share of joint
ventures' turnover (19) - (19) (19) - (19)
Group turnover 931 - 931 819 - 819
------------------------- ------------ ------------ ---------- --------------- ------------- ------------
Operating expenses, net (776) (29) (805) (724) (29) (753)
------------------------- ------------ ------------ ---------- --------------- ------------- ------------
EBITDA 176 - 176 122 - 122
Depreciation (21) - (21) (27) - (27)
Amortisation - (29) (29) - (29) (29)
------------------------- ------------ ------------ ---------- --------------- ------------- ------------
Operating profit (loss) 155 (29) 126 95 (29) 66
------------------------- ------------ ------------ ---------- --------------- ------------- ------------
Share of joint ventures'
operating results 1 - 1 (1) - (1)
Profit on disposal of
fixed asset investments - 49 49 - - -
Amounts written back to
fixed asset investments,
net - - - - 1 1
Profit (loss) on ordinary
activities before
interest and taxation 156 20 176 94 (28) 66
------------------------- ------------ ------------ ---------- --------------- ------------- ------------
Interest receivable and
similar income 2 - 2 - - -
Interest payable and
similar charges (23) - (23) (30) - (30)
Profit (loss) on ordinary
activities before
taxation 135 20 155 64 (28) 36
------------------------- ------------ ------------ ---------- --------------- ------------- ------------
Tax (charge) credit on
profit (loss) on ordinary
activities (42) - (42) (22) 2 (20)
Profit (loss) on ordinary
activities after
taxation 93 20 113 42 (26) 16
------------------------- ------------ ------------ ---------- --------------- ------------- ------------
Equity dividends - -
Retained profit for the
financial period 113 16
------------------------- ------------ ------------ ---------- --------------- ------------- ------------
Earnings (loss) per share
- basic 4.8p 1.0p 5.8p 2.2p (1.4p) 0.8p
Earnings (loss) per share
- diluted 4.8p 1.0p 5.8p 2.2p (1.4p) 0.8p
------------------------- ------------ ------------ ---------- --------------- ------------- ------------
*The results for the three months ended 31 March 2003 have been restated
following the adoption of UITF abstract 38 "Accounting for ESOP trusts".
Notes:
1. Turnover
2003/2004 2002/2003
Nine months Nine months
ended ended
31 March 31 March
GBPm GBPm
(unaudited) (unaudited)
DTH subscribers 1,973 1,726
Cable subscribers 160 146
Advertising 223 204
Interactive 219 146
Other 122 109
2,697 2,331
--------------------------------------- ----------- -----------
2. Operating expenses, net
2003/2004 2002/2003
Nine months Nine months
ended ended
31 March 31 March
Before Total Before Total
goodwill Goodwill GBPm goodwill Goodwill GBPm
GBPm GBPm (unaudited) GBPm GBPm (unaudited)
(unaudited) (unaudited) (unaudited) (unaudited)
Programming (i) 1,248 - 1,248 1,168 - 1,168
Transmission and
related functions
(i) 115 - 115 108 - 108
Marketing 299 - 299 312 - 312
Subscriber
management 279 - 279 242 - 242
Administration 195 87 282 185 93 278
Betting 123 - 123 67 - 67
2,259 87 2,346 2,082 93 2,175
---------------- -------- -------- -------- -------- -------- --------
(i) The amounts shown are net of GBP10 million (2002/2003 nine months ended 31
March: GBP9 million) receivable from the disposal of programming rights not
acquired for use by the Group, and GBP21 million (2002/2003 nine months ended 31
March: GBP19 million) in respect of the provision to third party broadcasters of
spare transponder capacity.
3. Exceptional items
(i) Profit on disposal of fixed asset investments
On 1 March 2004, the Group sold its 20% shareholding in QVC (UK), operator of
QVC - The Shopping Channel, for GBP49 million in cash, realising a profit on
disposal of GBP49 million.
On 7 October 2003, the Group disposed of its listed investment in Manchester
United plc, realising a profit on disposal of GBP2 million.
(ii) Amounts written back to (written off) fixed asset investments, net
The Group reduced its provision against its minority equity investments in
football clubs by GBP33 million, following the disposal of its investment in
Manchester United plc in October 2003 for GBP62 million in cash. The Group also
increased its provision against its remaining minority equity investments in
football clubs by a further GBP9 million.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
BRITISH SKY BROADCASTING GROUP PLC
Date: 12 May 2004 By: /s/ Dave Gormley
Dave Gormley
Company Secretary