RNS Number:4315H
News Corporation Ld
12 February 2003
NEWS CORPORATION REPORTS SECOND QUARTER OPERATING INCOME GROWTH OF 37% TO A$1.3
BILLION
REVENUES INCREASE 5% TO A$8.4 BILLION
NET PROFIT BEFORE OTHER ITEMS INCREASES 45% TO A$576 MILLION
QUARTER HIGHLIGHTS
* Television segment operating income up 35% on higher advertising
revenues at the television stations and STAR.
* Strong ratings and advertising growth at Fox News Channel and FX as
well as higher affiliate rates at the Regional Sports Networks nearly
doubles operating income at Cable Network Programming.
* Filmed Entertainment operating income more than doubles primarily on
success of Ice Age worldwide home entertainment sales.
* Fox Entertainment Group, Inc. issues an additional 50 million shares
for net cash proceeds of approximately US$1.2 billion.
Sydney, 13 February, 2003 - The News Corporation Limited (ASX: NCP, NCPDP) today
reported second quarter consolidated revenues of A$8.4 billion, a 5% increase
over the A$8.0 billion in the prior year and consolidated operating income of
A$1.3 billion, up 37% over the A$961 million a year ago. The year-on-year
growth was driven primarily by substantial increases in the Filmed
Entertainment, Television and Cable Network Programming segments.
Net profit for the fiscal second quarter was A$430 million, an increase of A$1.6
billion over the net loss of A$1.2 billion reported in the second quarter a year
ago which included a A$1,768 million pre-tax write-down of the Company's
national sports contracts. Net profit before other items was A$576 million
compared to A$397 million reported in the prior year.
Management Review of Performance
The Statement of Financial Performance, Statement of Financial Position and
Statement of Cash Flows for the three and six months ended 31 December are
attached. The following commentary is made in respect to those statements,
including an analysis of certain information contained therein.
Net Profit Attributable to Members of the Parent Entity
The reported net profit attributable to members of the parent entity consisted
of the following items:
3 Months Ended 6 Months Ended
31 December, 31 December,
2002 2001 2002 2001
A$ Millions (except per share amounts)
Revenue $ 8,420 $ 8,043 $ 15,351 $ 14,638
Operating income 1,313 961 2,309 1,663
Associated entities before other items (69) 12 (243) (109)
Interest expense, net (207) (273) (432) (525)
Dividends on exchangeable preferred (23) (23) (46) (47)
securities
Profit before income tax expense, 1,014 677 1,588 982
outside equity interest and other items
Income tax expense 322 204 500 285
Outside equity interest 116 76 217 140
Net profit before other items 576 397 871 557
Other items, net of tax and outside
equity interest: (a)
Group (25) (509) (25) (487)
Associated entities (121) (1,067) (121) (1,108)
Total other items (146) (1,576) (146) (1,595)
Net profit (loss) attributable to $ 430 $ (1,179) $ 725 $ (1,038)
members of the parent entity
Earnings per share on net profit before $ 0.110 $ 0.079 $ 0.165 $ 0.110
other items, net
Weighted average number of shares 5,146 4,884 5,137 4,813
outstanding in millions (diluted)
The following commentary discusses the major components of these results.
Consolidated Operating Income 3 Months Ended 6 Months Ended
31 December, 31 December,
2002 2001 2002 2001
A$ Millions A$ Millions
Filmed Entertainment $ 460 $ 226 $ 641 $ 462
Television 296 220 639 321
Cable Network Programming 218 118 432 180
Magazines & Inserts 107 106 199 192
Newspapers 184 221 287 364
Book Publishing 86 81 192 161
Other (38) (11) (81) (17)
Consolidated Operating Income $ 1,313 $ 961 $ 2,309 $ 1,663
CHAIRMAN'S COMMENTS
Commenting on the results, Chairman and Chief Executive Rupert Murdoch said:
"We are delighted with the 37 percent operating income growth we achieved in the
second quarter. Such robust growth is a reflection of the strong operating
leverage and momentum we have at most of our businesses. Double-digit revenue
gains at our cable and television station operations have translated into even
stronger double-digit operating income growth as tight cost management resulted
in improved operating margins. Our film business continues to thrive from its
string of successful theatrical releases and from explosive growth in the home
entertainment market. And our newspapers continue to enjoy better advertising
revenues at most major titles. Although we were disappointed with the
performance of the FOX network in the second quarter, the worst is clearly
behind it. Indeed, the unprecedented ratings surge we have delivered following
the quarter positions us to end this television season equal to or better than
last year's numbers - a remarkable turnaround. Our second quarter results
underscore the popularity of our media products around the world and our
continuing focus on cost-containment and a healthy balance sheet."
Second quarter net losses at associated entities before other items were A$69
million versus profits of A$12 million a year ago. The year-over-year decline
was primarily due to the inclusion of Stream losses and the unfavourable impact
of foreign currency fluctuations at the Latin America DTH platforms.
Additionally, second quarter losses at the Fox Sports Cable Networks associates
reflect increased costs at Madison Square Garden, principally due to a player
compensation charge. A detailed discussion of the components of associated
entities' losses is provided later in the release.
Second quarter net profit before other items increased to A$576 million (A$0.110
per share) versus A$397 million (A$0.079 per share) in the prior year primarily
due to higher consolidated operating income partially offset by higher losses at
the associated entities.
The Company reported a loss from other items in the quarter of A$146 million
versus a loss of A$1.6 billion a year ago. The loss in the current year
primarily includes a gain related to the Fox Entertainment Group's issuance of
50 million new shares offset by an additional write-down of the Company's
carrying value for its Gemstar investment. The loss in the second quarter a
year ago primarily included a profit from the sale of a 49.5% interest in Fox
Family Worldwide offset by a write-down of the Company's national sports
contracts and write-downs related to investments in KirchMedia and Stream. In
addition, the loss from other items in the prior year included BSkyB's
write-down of its investment in KirchPayTV.
An interim unfranked dividend of A$0.015 per Ordinary share and an unfranked
dividend of A$0.0375 per Preferred Limited Voting share has been declared and is
payable on 30 April, 2003. Completed share transfer received by the Company
until 5.00 PM on 1 April, 2003 will be registered before entitlements to the
dividend are determined. Elections with respect to the Dividend Reinvestment
Plan, to have effect with respect to the above dividends, must be lodged with
the Company by 5:00 PM on 1 April, 2003. A discount of 10% will apply to the
weighted average market price of the Ordinary and Preferred Limited Voting
shares used to determine the respective entitlements under the Dividend
Reinvestment Plan.
The following commentary is discussed principally in U.S. dollars.
REVIEW OF OPERATING RESULTS
FILMED ENTERTAINMENT
The Filmed Entertainment segment reported second quarter operating income of
US$255 million, a US$140 million improvement over the US$115 million reported in
the same period a year ago. This substantial increase was primarily driven by
record-breaking worldwide home entertainment sales led by the performance of Ice
Age as well as contributions from Star Wars Episode II: Attack of the Clones,
Behind Enemy Lines, Like Mike and catalog titles. These contributions were
partially offset by the impact of marketing costs for several successful second
and third quarter theatrical releases. Prior-year results were primarily driven
by the worldwide home entertainment performance of Planet of the Apes and Dr.
Dolittle 2.
Twentieth Century Fox Television (TCFTV) contributions increased versus the
second quarter a year ago primarily reflecting higher syndication profits from
King of the Hill and The X-Files as well as increased network license fees for
The Practice. Additionally, continued momentum in home entertainment sales,
most notably from The Simpsons and 24, contributed to the year-on-year growth.
During the quarter, several of TCFTV's new shows, including Cedric the
Entertainer on FOX and Still Standing on CBS, sustained solid ratings, while a
number of returning shows, including The Simpsons, 24, King of the Hill and
Malcolm in the Middle, continued to perform extremely well, ranking number one
in their time slots among adults 18-49.
TELEVISION
The Television segment reported second quarter operating income of US$165
million versus US$113 million in the same period a year ago, primarily
reflecting a 25% increase at the Fox Television Stations.
Fox Television Stations (FTS) second quarter operating income grew US$60 million
over a year ago largely as a result of stronger advertising revenue. The
advertising market was buoyed by increased spending particularly among the
automotive, fast food, movie and telecommunication categories, while also
benefiting from strong political advertising. Additionally, current-year
earnings growth continued to be fueled by margin expansion primarily from cost
reductions achieved through FTS' integration of its duopoly stations.
At the Fox Broadcasting Company (FBC), second quarter operating losses increased
compared to a year ago. Higher advertising revenues were more than offset by a
rise in primetime programming costs reflecting the cancellation of several new
series as well as increased promotional spending for the current season.
Following the end of the quarter, the network premiered several shows that are
handily winning their time slots among all key demographics, including American
Idol 2, the highest rated show on network television among Adults 18-49 and Joe
Millionaire, the number one new show of the 2002-2003 season.
STAR continued to improve its operating results in the second quarter,
generating positive operating income compared to a slight operating loss a year
ago despite absorbing start-up losses in the current year from the newly
launched Xing Kong Wei Shi channel in China. The improvement was fueled by
revenue growth of 17% primarily from an increase in subscription revenue at STAR
Plus in India which continues to add new subscribers. Additionally, STAR Plus
benefited from lower programming costs as a result of Kuan Banega Crorepati, the
Hindi version of Who Wants To Be a Millionaire, being taken off the schedule.
STAR Plus maintained its leadership position as the number one cable channel in
the region and now broadcasts, on average, 29 of the top 30 Hindi programs.
CABLE NETWORK PROGRAMMING
Cable Network Programming, comprising the Fox News Channel (FNC), Fox Sports
Networks (including the Regional Sports Networks (RSNs), the FX Channel (FX) and
Speed Channel), the Los Angeles Dodgers and other cable-related businesses,
reported second quarter operating income of US$121 million, an improvement of
US$61 million over last year's results. This success reflects strong growth
across all of the Company's primary cable television channels.
The Fox News Channel more than tripled its operating income versus the second
quarter a year ago due to strong ad sales growth and relatively flat operating
costs. FNC finished the calendar year with its fourth consecutive quarter as
the most watched cable news network - fiscal second quarter viewership was 29%
greater than that of its nearest competitor on a 24-hour basis and 33% higher in
primetime.
Fox Sports Networks' operating profit improved 65% during the quarter, driven
primarily by double-digit revenue growth at both the RSNs and FX. The revenue
increase at the RSNs was largely due to higher affiliate rates and an increase
in the number of DTH subscribers. The growth at FX was the result of increases
in both advertising and affiliate revenues that were fueled by strong ratings
gains, higher pricing and a 6% increase in subscribers over the past year.
Subsequent to quarter-end, FX debuted the second season of The Shield, which
premiered with the highest second season ratings in basic cable history, in
addition to winning Golden Globes for Best Drama Series and Best Actor in a
Drama Series.
MAGAZINES AND INSERTS
The Magazines and Inserts segment reported second quarter operating income of
US$59 million, an increase of US$4 million versus a year ago. The 7%
improvement was primarily due to higher revenues and market share at both the
Free Standing Inserts and In-Store divisions.
NEWSPAPERS
The Newspaper segment reported second quarter operating income of US$102
million, a 10% decrease versus the same period a year ago as advertising revenue
gains were more than offset by circulation revenue declines in the UK as a
result of The Sun's discounted pricing to match the competition.
The UK newspaper group reported a 37% operating income decline in local currency
terms for the second quarter compared to a year ago as advertising revenue
growth of 6% was more than offset by circulation revenue declines. The
improvement in advertising was achieved across all titles, with particular
strength at The Times and The Sunday Times. Circulation revenue declined as
higher revenues at The News of the World, The Times and The Sunday Times were
more than offset by the cover price reductions at The Sun. As a result of this
initiative, circulation at The Sun has expanded by 5% compared to the second
quarter a year ago.
The Australian newspaper group reported an 18% increase in operating income in
local currency terms driven by a 10% increase in advertising revenue over a year
ago and a moderate increase in circulation revenue. Advertising growth reflects
particular strength in display advertising, including increases in the retail,
real estate and national categories as well as growth in classified advertising,
which experienced strength across all categories including employment in
particular.
BOOK PUBLISHING
HarperCollins reported another quarter of strong operating profit, with
contributions of US$48 million, 14% above the same period a year ago. The
solid quarterly results reflect the strong performance across all divisions
worldwide, led by an array of bestsellers, including Michael Crichton's Prey,
the ongoing popularity of Lemony Snicket's A Series of Unfortunate Events and
J.R.R. Tolkien's Lord of the Rings trilogy, and the breakout success of
Zondervan's The Purpose-Driven Life by Rick Warren. During the quarter,
HarperCollins had 40 books on The New York Times bestseller lists including four
books that reached the #1 spot.
REVIEW OF ASSOCIATED ENTITIES RESULTS
Second quarter net losses from associated entities before other items were A$69
million versus profits of A$12 million a year ago. The year-over-year decline
was primarily due to the inclusion of Stream losses and the unfavourable impact
of foreign currency fluctuations at the Latin America DTH platforms.
Additionally, second quarter losses at the Fox Sports Cable Networks associates
reflect increased costs at Madison Square Garden, principally due to a player
compensation charge.
The Company's share of associated entities earnings (losses) is as follows:
3 Months Ended 6 Months Ended
31 December, 31 December,
% Owned 2002 2001* 2002 2001*
US $ Millions US $ Millions
Platforms:
Sky Latin America:
Sky Brasil 46.7% (a) $ 10 $ 18 $ (57) $ (13)
Innova - Mexico 30.0% (9) - (17) (19)
Other Various (6) (11) (14) (22)
FOXTEL - Australia 25.0% (2) (2) (4) (4)
Stream 50.0% (b) (61) - (100) -
Channels:
Fox Sports Cable Networks Various (3) 12 9 4
STAR Associates:
ESPN STAR Sports 50.0% - (2) 1 (4)
Other STAR Various (c) (1) (1) (5) (2)
Other Associates Various (d) 33 (8) 52 4
Total associated entities'
earnings (losses) before
other items $ (39) $ 6 $ (135) $ (56)
Other items (e) (67) (548) (67) (569)
Total associated entities' $ (106) $ (542) $ (202) $ (625)
earnings (losses)
Total associated entities'
earnings (losses) before
other items in A$ A$ (69) A$ 12 A$ (243) A$ (109)
Further details on the associated entities follow.
(a) For the six months ended 31 December, 2001, the Company's share of Sky
Brasil (formerly NetSat) was 36%.
(b) The Company's share of Stream's start-up losses were not included through 31
March, 2002.
(c) Primarily comprising Phoenix Satellite Television, Taiwan Cable Systems, and
Hathway Cable.
(d) Primarily comprising Gemstar-TV Guide International, Independent Newspapers
Limited, Queensland Press, The National Geographic Channels, Fox Family
Worldwide (until it was sold in October 2001), Fox Sports International (until
the remaining interest was purchased and consolidated in December 2001), and
BSkyB.
(e) Other items for the current quarter primarily include the Company's share
of Sky Brasil's accumulated deferred tax asset write-off. The second quarter a
year ago included BSkyB's write-down of its carrying value in KirchPayTV.
*Certain prior year amounts have been reclassified to conform to the current
fiscal year presentation.
Sky Brasil (in US$) 3 Months Ended 6 Months Ended
31 December, 31 December,
2002 2001 2002 2001
Millions (except Millions (except
subscribers) subscribers)
Revenues (in local currency) R$ 138 R$ 131 R$ 268 R$ 256
Revenues $ 37 $ 51 $ 79 $ 100
EBITDA (5) 5 (6) (2)
Net income (loss) $ 21 $ 50 $ (136) $ (35)
News' reportable 46.7% share (in US$) $ 10 $ 18 $ (57) $ (13)
Net Debt (excluding capitalised leases) $ 213 $ 213
Ending Subscribers 732,000 708,000
Sky Brasil's revenues, which grew 5% in local currency terms in the quarter due
to a higher subscriber base, decreased on a reported basis due to the decline of
the average Brazilian Real versus the U.S. dollar. The decline in EBITDA
reflects the lower revenues as well as an increase in programming and marketing
costs associated with the Brazilian Soccer Championships, partially offset by
cost savings in set-top box subsidies. The reduction in net income principally
reflects lower foreign exchange gains compared to the prior year.
Innova (in US$) - Mexico 3 Months Ended 6 Months Ended
31 December, 31 December,
2002 2001 2002 2001
Millions (except Millions (except
subscribers) subscribers)
Revenues (in local currency) Ps 805 Ps 771 Ps 1,639 Ps 1,560
Revenues $ 80 $ 84 $ 164 $ 169
EBITDA 24 8 50 18
Net loss $ (30) $ (1) $ (58) $ (63)
News' reportable 30% share (in US$) $ (9) $ - $ (17) $ (19)
Net Debt (excluding capitalised leases) $ 350 $ 370
Ending Subscribers 706,000 692,000
Innova's revenues, which grew 4% in local currency terms in the quarter,
decreased on a reported basis due to the decline of the average Mexican Peso
versus the U.S. dollar. Innova's EBITDA growth reflects the absence of costs
associated with the satellite dish repositioning that was completed in the prior
year. The increase in EBITDA was more than offset by the unfavourable impact of
foreign currency exchange due to the weakening of the Mexican Peso on U.S.
dollar denominated liabilities.
FOXTEL (in A$) - Australia 3 Months Ended 6 Months Ended
31 December, 31 December,
2002 2001 2002 2001
Millions (except Millions (except
subscribers) subscribers)
Revenues A$ 150 A$ 127 A$ 288 A$ 251
EBITDA (8) (6) (20) (21)
Net loss A$ (13) A$ (12) A$ (30) A$ (30)
News' reportable 25% share (in US$) $ (2) $ (2) $ (4) $ (4)
Ending Subscribers (including Optus) 1,050,000 775,000
FOXTEL's revenues for the quarter increased 18% principally due to a 12%
increase in satellite subscribers compared to a year ago, higher average revenue
per subscriber, and the inclusion of Optus wholesale subscribers as of 1
December, 2002. EBITDA losses for the quarter increased A$2 million due to an
increase in sports programming together with Fox Footy Channel costs and Optus
license fee costs, partially offset by the increased revenues.
Fox Sports Cable 3 Months Ended 6 Months Ended
Networks* (in US$) 31 December, 31 December,
2002 2001 2002 2001
Millions (except Millions (except
subscribers) subscribers)
Net (loss) income $ (3) $ (2) $ 9 $ (24)
AGAAP Adjustments (1) - 14 - 28
News' reportable share* $ (3) $ 12 $ 9 $ 4
Ending Subscribers 44,072,000 50,689,000
The increase in net loss reported by Fox Sports Cable Networks for the quarter
primarily reflects the impact of a player compensation charge and lower revenues
at Madison Square Garden, offset by the favourable impact of lower amortisation
at Regional Programming Partners from its adoption of FAS 142.
*Various associated interests ranging from 20 percent to 50 percent, primarily
comprising Regional Programming Partners (including Madison Square Garden),
Sunshine Network (until January 2002), Fox Sports Bay Area, Fox Sports Chicago,
National Sports Partnership and National Advertising Partnership.
1 Principally reflects adjustments for reporting under Australian Generally
Accepted Accounting Principles ("AGAAP") relating to identifiable intangible
amortisation.
ESPN STAR Sports (in US$) - Asia 3 Months Ended 6 Months Ended
31 December, 31 December,
2002 2001 2002 2001
Millions (except Millions (except viewership)
viewership)
Revenues $ 39 $ 37 $ 76 $ 62
EBITDA 1 (1) 7 (3)
Net income (loss) $ (1) $ (3) $ 2 $ (8)
News' reportable 50% share $ - $ (2) $ 1 $ (4)
Viewership 184,798,000 141,464,000
Revenue for the quarter reflects increased subscription revenues principally due
to subscriber and rate growth in India and Hong Kong, partially offset by lower
advertising revenues from South Africa cricket events. EBITDA improved $2
million as the increase in revenues and lower programming and production costs
were partially offset by higher promotional costs. Overall viewership at ESPN
STAR Sports increased 31% to approximately 185 million, mainly due to growth in
China and Korea.
Foreign Exchange Rates
Average foreign exchange rates used in the year-to-date profit results are as
follows:
6 Months Ended
31 December,
2002 2001
Australian Dollar/U.S Dollar 0.55 0.51
U.K. Pounds Sterling/U.S. Dollar 1.56 1.44
To receive a copy of this press release through the Internet, access News Corp's
corporate Web site located at http://www.newscorp.com
Audio from News Corp's meeting with analysts on the second quarter results can
be heard live on the Internet at 8:45 a.m. Eastern Summer Time (Australia)
today. To listen to the call, visit http://www.newscorp.com
Cautionary Statement Concerning Forward-Looking Statements
This document contains certain "forward-looking statements" within the meaning
of the Private Securities Litigation Reform Act of 1995. These statements are
based on management's views and assumptions regarding future events and business
performance as of the time the statements are made. Actual results may differ
materially from these expectations due to changes in global economic, business,
competitive market and regulatory factors. More detailed information about
these and other factors that could affect future results is contained in our
filings with the Securities and Exchange Commission. The "forward-looking
statements" included in this document are made only as of the date of this
document and we do not have any obligation to publicly update any "
forward-looking statements" to reflect subsequent events or circumstances,
except as required by law.
CONTACTS:
Reed Nolte, Investor Relations Andrew Butcher, Press Inquiries
212-852-7092 212-852-7070
STATEMENT OF FINANCIAL PERFORMANCE (a) 3 Months Ended 6 Months Ended
Note 31 December, 31 December,
2002 2001 2002 2001
A$ Millions (except per share amounts)
Sales revenue 1 $ 8,420 $ 8,043 $ 15,351 $ 14,638
Operating expenses 7,107 7,082 13,042 12,975
Operating income 1 1,313 961 2,309 1,663
Net loss from associated entities (190) (1,064) (364) (1,226)
Borrowing costs (249) (325) (526) (653)
Interest income 42 52 94 128
Net borrowing costs (207) (273) (432) (525)
Dividend on exchangeable preferred (23) (23) (46) (47)
securities
Other expenses before income tax, net (47) (333) (47) (277)
Profit (loss) from ordinary activities 846 (732) 1,420 (412)
before income tax
Income tax expense on:
Ordinary activities before change in (322) (204) (500) (285)
accounting policy and other items
Other items 22 (85) 22 (119)
Net income tax expense (300) (289) (478) (404)
Net profit (loss) from ordinary activities 546 (1,021) 942 (816)
after tax
Net profit attributable to outside equity (116) (158) (217) (222)
interests
Net Profit (Loss) Attributable to Members of $ 430 $ (1,179) $ 725 $ (1,038)
the Parent Entity
Net exchange gains (losses) recognised (799) (1,759) 371 222
directly in equity
Other items recognised directly in equity 152 (267) 152 (267)
Total change in equity other than those $ (217) $ (3,205) $ 1,248 $ (1,083)
resulting from transactions with owners as
owners
Basic/diluted earnings per share on net
profit (loss) attributable to members of the
parent entity
Ordinary shares $0.072 $(0.221) $0.121 $(0.198)
Preferred limited voting ordinary shares $0.087 $(0.266) $0.146 $(0.237)
Ordinary and preferred limited voting $0.081 $(0.248) $0.136 $(0.221)
ordinary shares
STATEMENT OF FINANCIAL POSITION 31 December, 30 June,
2002 2002
ASSETS A$ Millions
Current Assets
Cash $ 5,463 $ 6,337
Receivables 7,997 5,809
Inventories 2,303 1,935
Other 513 566
Total Current Assets 16,276 14,647
Non-Current Assets
Receivables 893 796
Investments in associated entities 6,487 6,875
Other investments 1,623 1,712
Inventories 4,429 4,232
Property, plant and equipment 6,752 6,671
Publishing rights, titles and television licenses 36,401 35,348
Goodwill 392 455
Other 645 705
Total Non-Current Assets 57,622 56,794
Total Assets $ 73,898 $ 71,441
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities
Interest bearing liabilities $ 135 $ 1,856
Payables 9,030 8,073
Tax liabilities 512 848
Provisions 266 228
Total Current Liabilities 9,943 11,005
Non-Current Liabilities
Interest bearing liabilities 13,615 13,585
Payables 3,916 4,054
Tax liabilities 970 434
Provisions 1,039 1,205
Total Non-Current Liabilities Excluding Exchangeable Preferred 19,540 19,278
Securities
Exchangeable preferred securities 1,693 1,690
Total Liabilities 31,176 31,973
Shareholders' Equity
Contributed equity 28,291 28,239
Reserves 6,525 6,351
Retained profits 897 1
Shareholders' equity attributable to members of the parent entity 35,713 34,591
Outside equity interests in controlled entities 7,009 4,877
Total Shareholders' Equity 42,722 39,468
Total Liabilities and Shareholders' Equity $ 73,898 $ 71,441
STATEMENT OF CASH FLOWS 6 Months Ended 31 December,
2002 2001
Operating Activity A$ Millions
Net profit (loss) attributable to members of the parent entity $ 725 $ (1,038)
Adjustment for non-cash and non-operating activities:
Equity earnings, net 262 142
Depreciation and amortisation 368 376
Provisions 316 89
Other items, net 146 1,595
Change in assets and liabilities:
Receivables (2,195) (1,604)
Inventories (611) (646)
Payables 1,510 1,020
Cash provided by (used in) operating activity 521 (66)
Investing and other activity
Property, plant and equipment (327) (300)
Investments (1,486) (2,934)
Repayment of loan by associate 170 -
Proceeds from sale of non-current assets 95 4,613
Cash (used in) provided by investing activity (1,548) 1,379
Financing activity
Repayment of debt, net (1,953) (652)
Issuance of shares and preferred securities 2,167 112
Dividends paid (133) (162)
Leasing and other finance costs (2) -
Cash provided by (used in) financing activity 79 (702)
Net (decrease) increase in cash (948) 611
Opening cash balance 6,337 5,615
Exchange movement on opening balance 74 21
Closing cash balance $ 5,463 $ 6,247
Note 1 - SEGMENT DATA 3 Months Ended 6 Months Ended
31 December, 31 December,
BY GEOGRAPHIC AREAS 2002 2001 2002 2001
A$ Millions A$ Millions
Revenues
United States $ 6,605 $ 6,230 $ 11,855 $ 11,195
United Kingdom 1,151 1,183 2,224 2,229
Australasia 664 630 1,272 1,214
$ 8,420 $ 8,043 $ 15,351 $ 14,638
Operating Income
United States $ 1,052 $ 673 $ 1,902 $ 1,217
United Kingdom 149 223 251 361
Australasia 112 65 156 85
$ 1,313 $ 961 $ 2,309 $ 1,663
BY INDUSTRY SEGMENT
Revenues
Filmed Entertainment $ 2,403 $ 2,182 $ 4,007 $ 4,001
Television 2,598 2,610 4,458 4,145
Cable Network Programming 901 790 1,908 1,634
Magazines and Inserts 387 382 740 768
Newspapers 1,208 1,194 2,311 2,299
Book Publishing 587 564 1,217 1,172
Other 336 321 710 619
$ 8,420 $ 8,043 $ 15,351 $ 14,638
Operating Income
Filmed Entertainment $ 460 $ 226 $ 641 $ 462
Television 296 220 639 321
Cable Network Programming 218 118 432 180
Magazines and Inserts 107 106 199 192
Newspapers 184 221 287 364
Book Publishing 86 81 192 161
Other (38) (11) (81) (17)
$ 1,313 $ 961 $ 2,309 $ 1,663
--------------------------
(a) Previously referred to as "abnormal items". This caption has been changed
to be consistent with the presentation contained in the Statement of Financial
Performance on page 12 of this release.
(a) Following the issuance in June 2002 of the revised Australian Accounting
Standard AASB 1018 "Statement of Financial Performance" this statement has been
reformatted from previous presentations to be consistent with the format
prescribed in the revised Australian Accounting Standard.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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