|
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.
| |
|
|
2005
£m |
|
|
2004
£m |
a |
|
2003
£m |
a |
|
|
|
Revenue
|
|
|
18,623 |
|
|
18,519 |
|
|
18,727 |
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
|
|
|
Payroll
costs
|
|
|
3,729 |
|
|
3,738 |
|
|
3,667 |
|
|
Depreciation
and amortisation
|
|
|
2,856 |
|
|
2,936 |
|
|
3,035 |
|
|
Payments
to telecommunication operators
|
|
|
3,725 |
|
|
3,963 |
|
|
3,940 |
|
|
Other
operating expenses
|
|
|
5,695 |
|
|
5,189 |
|
|
5,724 |
|
|
|
|
Total
operating expenses
|
|
|
16,005 |
|
|
15,826 |
|
|
16,366 |
|
|
|
|
Net
operating income
|
|
|
2,618 |
|
|
2,693 |
|
|
2,361 |
|
|
Other
income, net
|
|
|
551 |
|
|
227 |
|
|
1,922 |
|
|
Net
interest expense
|
|
|
(801 |
) |
|
(941 |
) |
|
(1,439 |
) |
|
Income
taxes
|
|
|
(523 |
) |
|
(539 |
) |
|
(459 |
) |
|
Minority
interests
|
|
|
1 |
|
|
8 |
|
|
(12 |
) |
|
Equity
in losses (earnings) of investees
|
|
|
(25 |
) |
|
(34 |
) |
|
329 |
|
|
|
|
Net
income
|
|
|
1,821 |
|
|
1,414 |
|
|
2,702 |
|
|
|
|
Earnings
per share – basic
|
|
|
21.4 |
p |
|
16.4 |
p |
|
31.4 |
p |
|
Earnings
per share – diluted
|
|
|
21.2 |
p |
|
16.3 |
p |
|
31.2 |
p |
| a |
Restated
following the adoption of UITF17 and UITF38 (see
note 1).
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|
