25th Apr 2006 16:27
British Sky Broadcasting Group PLC25 April 2006 PRESS RELEASE 25 April 2006 BRITISH SKY BROADCASTING GROUP PLC BSkyB follows industry practice in accounting for betting Following recent changes in industry practice regarding the accounting forbetting revenues and costs under International Financial Reporting Standards,British Sky Broadcasting Group plc ("Sky") is today announcing its intention toalign its accounting policy with this change in industry practice. In Sky's Interim Report for the half year ended 31 December 2005 to be filed onform 6-K with the SEC on 26 April 2006, and in all quarterly reporting from thenon, Sky will account for betting revenues and costs under IAS 39 - "Financialinstruments: Recognition and Measurement". On this basis, betting payouts willbe netted against Sky Bet revenues. There is no effect on Sky's operatingprofit. Below is an extract from the consolidated income statement for the half yearended 31 December 2005 illustrating the effect of applying the new alignedaccounting policy. Consolidated Existing Change New accountingincome statement accounting policy policy£mRevenue DTH subscribers 1,554 1,554 Cable subscribers 112 112 Advertising 171 171 Sky Bet 136 (120) 16 Sky Active 46 46 Other 117 117 2,136 (120) 2,016 ___________________________________________________ Operating expenses Programming (810) (810) Transmission and related functions (87) (87) Marketing (332) (332) Subscriber management (215) (4) (219) Administration (154) (154) Betting (124) 124 - (1,722) 120 (1,602) ___________________________________________________ Operating profit 414 - 414________________________________________________________________________________ Enquiries: Analysts/Investors:Andrew Griffith Tel: 020 7705 3118Robert Kingston Tel: 020 7705 3726E-mail: [email protected] Press:Matthew Anderson Tel: 020 7705 3267Robert Fraser Tel: 020 7705 3036E-mail: [email protected] This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
Sky