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viii
Income statement in US GAAP format
The group
profit and loss accounts comply with UK GAAP and the
directors believe they are in the most appropriate format
for shareholders to understand the results of our business.
We believe that it is important to show our results before
deducting goodwill amortisation and exceptional items because
these items predominantly relate to corporate transactions
rather than the trading activities of the group. For SEC
reporting purposes this presentation would be considered
‘‘non GAAP’’ and therefore the group has also prepared the
following income statement which meets the SEC reporting
format set forth in Item 10 of Regulation S-X. The financial
numbers disclosed in the following income statement are
prepared under UK GAAP.
| |
2004 |
|
2003 |
|
2002 |
|
| |
£m |
|
£m |
|
£m |
|
|
|
|
|
|
|
|
| Revenue |
18,519 |
|
18,727 |
|
18,447 |
|
| Operating
expenses: |
|
|
|
|
|
|
| Payroll
costs |
3,735 |
|
3,671 |
|
3,698 |
|
| Depreciation
and amortisation |
2,936 |
|
3,035 |
|
5,345 |
|
| Payments
to telecommunication operators |
3,963 |
|
3,940 |
|
4,289 |
|
| Other
operating expenses |
5,189 |
|
5,724 |
|
5,522 |
|
|
|
|
|
|
|
|
| Total
operating expenses |
15,823 |
|
16,370 |
|
18,854 |
|
|
|
|
|
|
|
|
| Net
operating income (loss) |
2,696 |
|
2,357 |
|
(407 |
) |
| Other
income, net |
227 |
|
1,910 |
|
936 |
|
| Net
interest expense |
(941 |
) |
(1,439 |
) |
(1,579 |
) |
| Income
taxes |
(539 |
) |
(459 |
) |
(385 |
) |
| Minority
interests |
8 |
|
(12 |
) |
(10 |
) |
| Equity
in earnings (losses) of investees |
(34 |
) |
329 |
|
(1,443 |
) |
|
|
|
|
|
|
|
| Income
(loss) from continuing operations |
1,417 |
|
2,686 |
|
(2,888 |
) |
| Discontinued
operations |
– |
|
– |
|
3,883 |
|
|
|
|
|
|
|
|
| Net
income |
1,417 |
|
2,686 |
|
995 |
|
|
|
|
|
|
|
|
| Earnings
per share – basic |
16.4 |
p |
31.2 |
p |
12.0 |
p |
| Earnings
per share – diluted |
16.3 |
p |
31.0 |
p |
11.9 |
p
|
|
|
