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In May 2004 BBC Worldwide announced its intention
to terminate its Multimedia publishing business, which
developed and marketed gaming titles for various platforms.
During the year ended 31 March 2005 costs totalling
£2.7million were charged to the profit and loss account,
of which £1.3 million was in respect of the write-off of
stock. The balance represented the cash costs of exiting
the business.
In January 2005 BBC Worldwide completed the sale of Eve
magazine to Haymarket Publishing for a net consideration
of £6.5 million. The proceeds have been included within
the Group’s turnover and the transaction disclosed as an
exceptional item within operating profit. Eve magazine did
not constitute a separate operation, sharing many services
with other titles.
Joint ventures and associates
In line with FRS9, BBC Worldwide has shown its share of
joint-venture turnover of £160.9 million (2004: £87.3 million)
on the face of the profit and loss account. Gross assets and
liabilities are presented on the balance sheet. The Group’s
share of operating profit of joint ventures, after goodwill
amortisation of £0.9 million, was £18.5 million (2004:
£0.6 million).
The 2|entertain transaction has had a significant impact
on the Group’s joint-venture investment accounting. The Group’s share of turnover for the four-month period to
2|entertain’s 31 January |
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2005 accounting reference date was
£64.0 million and the share of operating profit after goodwill
amortisation was £15.9 million.
In December 2004 BBC Worldwide completed the
acquisition of a 50% equity interest in Worldwide Media
Limited, a magazine publishing joint venture based in India, for
a cash consideration of £5.5 million. Goodwill of £2.9 million
arose on the transaction. The Group share of turnover was
£0.9 million and its share of operating profit after goodwill
amortisation was £0.1 million.
The share of turnover from BBC Worldwide’s existing
joint venture, BBC Haymarket Exhibitions Limited, was
£5.0 million (2004: £4.8 million) and the share of operating
profit £0.4 million (2004: £0.6 million).
The structure of the arrangements with its joint venture
partners, Flextech, Discovery and Alliance Atlantis, is such
that BBC Worldwide has no liability to fund the losses of
the ventures and its effective financial obligation is therefore
adjusted to £nil (2004: £nil). During the year ended 31 March
2005 the Group received its first dividend of £2.1 million from
UK Gold Holdings Limited, one of the Flextech joint ventures,
which has been recorded within joint-venture operating profit.
Operating profit from BBC Worldwide’s associates, Frontline
Limited, UK TV Pty Limited, BBC Worldwide (India) Private
Limited and Children’s Character Books Limited was
£1.2 million (2004: £1.4 million). |
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