Notes 1-5
- 1. Basis of preparation
- 2. Significant accounting policies
- 3. Segment analysis
- 4. Operating profit/(loss)
- 5. Investment income and financing costs
3. Segment analysis
The Group has a single group of related services and products, being the supply of communications services and products. Segment information is provided on the basis of geographic areas, being the basis on which the Group manages its worldwide interests. Revenue is attributed to a country or region based on the location of the Group company reporting the revenue. Inter-segment sales are charged at arm’s length prices.
During the year ended 31 March 2008, the Group early adopted IFRS 8 “Operating Segments”. During the year ended 31 March 2009, the Group changed its measure of segment profit from adjusted operating profit to EBITDA. In addition to excluding non-operating income of associates, impairment losses and other income and expense from operating profit, as in the case of adjusted operating profit, EBITDA further excludes the share of results of associates, depreciation, amortisation and gains/losses on the disposal of fixed assets. During the year, the Group changed its organisation structure. The tables below present segment information on the revised basis, with prior years amended to conform to the current year presentation.
| Segment revenue £m |
Common Functions £m |
Intra-region revenue £m |
Regional revenue £m |
Inter-region revenue £m |
Group revenue £m |
EBITDA £m |
|
|---|---|---|---|---|---|---|---|
| 31 March 2009 | |||||||
| Germany | 7,847 | (52) | 7,795 | (16) | 7,779 | 3,058 | |
| Italy | 5,547 | (36) | 5,511 | (6) | 5,505 | 2,424 | |
| Spain | 5,812 | (93) | 5,719 | (4) | 5,715 | 1,897 | |
| UK | 5,392 | (46) | 5,346 | (10) | 5,336 | 1,219 | |
| Other Europe(1) | 5,329 | (66) | 5,263 | (5) | 5,258 | 1,824 | |
| Europe | 29,927 | (293) | 29,634 | (41) | 29,593 | 10,422 | |
| Vodacom(2) | 1,778 | – | 1,778 | – | 1,778 | 606 | |
| Other Africa and Central Europe(3) | 3,723 | – | 3,723 | (48) | 3,675 | 1,084 | |
| Africa and Central Europe | 5,501 | – | 5,501 | (48) | 5,453 | 1,690 | |
| India | 2,689 | (1) | 2,688 | (19) | 2,669 | 710 | |
| Other Asia Pacific and Middle East(4) | 3,131 | – | 3,131 | (31) | 3,100 | 1,029 | |
| Asia Pacific and Middle East | 5,820 | (1) | 5,819 | (50) | 5,769 | 1,739 | |
| Common Functions(5) | – | 216 | – | 216 | (14) | 202 | 639 |
| Group(6) | 41,248 | 216 | (294) | 41,170 | (153) | 41,017 | 14,490 |
| Verizon Wireless(6) | 14,085 | 5,543 | |||||
| 31 March 2008 | |||||||
| Germany | 6,866 | (51) | 6,815 | (11) | 6,804 | 2,667 | |
| Italy | 4,435 | (33) | 4,402 | (6) | 4,396 | 2,158 | |
| Spain | 5,063 | (96) | 4,967 | (4) | 4,963 | 1,806 | |
| UK | 5,424 | (46) | 5,378 | (10) | 5,368 | 1,431 | |
| Other Europe(1) | 4,583 | (64) | 4,519 | (3) | 4,516 | 1,628 | |
| Europe | 26,371 | (290) | 26,081 | (34) | 26,047 | 9,690 | |
| Vodacom(2) | 1,609 | – | 1,609 | – | 1,609 | 586 | |
| Other Africa and Central Europe(3) | 3,337 | – | 3,337 | (35) | 3,302 | 1,083 | |
| Africa and Central Europe | 4,946 | – | 4,946 | (35) | 4,911 | 1,669 | |
| India | 1,822 | – | 1,822 | (12) | 1,810 | 598 | |
| Other Asia Pacific and Middle East(4) | 2,577 | – | 2,577 | (26) | 2,551 | 878 | |
| Asia Pacific and Middle East | 4,399 | – | 4,399 | (38) | 4,361 | 1,476 | |
| Common Functions(5) | – | 170 | – | 170 | (11) | 159 | 343 |
| Group(6) | 35,716 | 170 | (290) | 35,596 | (118) | 35,478 | 13,178 |
| Verizon Wireless(6) | 10,144 | 3,930 | |||||
| 31 March 2007 | |||||||
| Germany | 6,790 | (56) | 6,734 | (9) | 6,725 | 2,696 | |
| Italy | 4,245 | (44) | 4,201 | (5) | 4,196 | 2,149 | |
| Spain | 4,500 | (106) | 4,394 | (3) | 4,391 | 1,567 | |
| UK | 5,124 | (54) | 5,070 | (9) | 5,061 | 1,459 | |
| Other Europe(1) | 4,275 | (82) | 4,193 | (4) | 4,189 | 1,530 | |
| Europe | 24,934 | (342) | 24,592 | (30) | 24,562 | 9,401 | |
| Vodacom(2) | 1,478 | – | 1,478 | – | 1,478 | 532 | |
| Other Africa and Central Europe(3) | 2,616 | – | 2,616 | (31) | 2,585 | 893 | |
| Africa and Central Europe | 4,094 | – | 4,094 | (31) | 4,063 | 1,425 | |
| India | – | – | – | – | – | – | |
| Other Asia Pacific and Middle East(4) | 2,347 | – | 2,347 | (20) | 2,327 | 826 | |
| Asia Pacific and Middle East | 2,347 | – | 2,347 | (20) | 2,327 | 826 | |
| Common Functions(5) | – | 168 | – | 168 | (16) | 152 | 308 |
| Group(6) | 31,375 | 168 | (342) | 31,201 | (97) | 31,104 | 11,960 |
| Verizon Wireless(6) | 9,387 | 3,614 |
Notes:
- (1)
- EBITDA is stated before £520 million (2008: £425 million; 2007: £517 million) representing the Group’s share of results in associated undertakings.
- (2)
- EBITDA is stated before £(1) million (2008: £nil; 2007: £nil) representing the Group’s share of results in associated undertakings.
- (3)
- EBITDA is stated before £27 million (2008: £nil; 2007: £nil) representing the Group’s share of results in associated undertakings.
- (4)
- EBITDA is stated before £4 million (2008: £2 million; 2007: £nil) representing the Group’s share of results in associated undertakings.
- (5)
- EBITDA is stated before £(1) million (2008: £2 million; 2007: £1 million) relating to the Group’s share of results in associated undertakings.
- (6)
- Values shown for Verizon Wireless are not included in the calculation of Group revenue or EBITDA as Verizon Wireless is an associated undertaking.
A reconciliation of EBITDA to operating profit/(loss) is shown below. For a reconciliation of operating profit/(loss) to profit/(loss) before taxation, see the consolidated income statement.
| 2009 £m |
2008 £m |
2007 £m |
|
|---|---|---|---|
| EBITDA | 14,490 | 13,178 | 11,960 |
| Depreciation and amortisation including loss on disposal of fixed assets | (6,824) | (5,979) | (5,154) |
| Share of results in associated undertakings | 4,091 | 2,876 | 2,728 |
| Impairment losses | (5,900) | – | (11,600) |
| Other items | – | (28) | 502 |
| Operating profit/(loss) | 5,857 | 10,047 | (1,564) |
| Non-current assets(1) £m |
Capital expenditure(2) £m |
Other expenditure on intangible assets £m |
Depreciation and amortisation £m |
Impairment loss £m |
|
| 31 March 2009 | |||||
| Germany | 21,617 | 750 | 16 | 1,318 | – |
| Italy | 18,666 | 521 | – | 687 | – |
| Spain | 13,324 | 632 | – | 567 | 3,400 |
| UK | 7,414 | 446 | – | 954 | – |
| Other Europe | 9,375 | 511 | – | 724 | – |
| Europe | 70,396 | 2,860 | 16 | 4,250 | 3,400 |
| Vodacom | 2,287 | 237 | – | 231 | – |
| Other Africa and Central Europe | 5,700 | 625 | 21 | 830 | 2,500 |
| Africa and Central Europe | 7,987 | 862 | 21 | 1,061 | 2,500 |
| India | 10,308 | 1,351 | – | 746 | – |
| Other Asia Pacific and Middle East | 4,687 | 524 | 1,101 | 475 | – |
| Asia Pacific and Middle East | 14,995 | 1,875 | 1,101 | 1,221 | – |
| Common Functions | 810 | 312 | – | 282 | – |
| Group | 94,188 | 5,909 | 1,138 | 6,814 | 5,900 |
| 31 March 2008 | |||||
| Germany | 19,129 | 613 | 14 | 1,167 | – |
| Italy | 16,215 | 411 | 1 | 582 | – |
| Spain | 14,589 | 533 | – | 500 | – |
| UK | 7,930 | 465 | – | 973 | – |
| Other Europe | 8,303 | 469 | 11 | 616 | – |
| Europe | 66,166 | 2,491 | 26 | 3,838 | – |
| Vodacom | 1,676 | 204 | 2 | 219 | – |
| Other Africa and Central Europe | 7,075 | 702 | 5 | 694 | – |
| Africa and Central Europe | 8,751 | 906 | 7 | 913 | – |
| India | 8,835 | 1,030 | – | 562 | – |
| Other Asia Pacific and Middle East | 2,597 | 463 | – | 389 | – |
| Asia Pacific and Middle East | 11,432 | 1,493 | – | 951 | – |
| Common Functions | 717 | 185 | 8 | 207 | – |
| Group | 87,066 | 5,075 | 41 | 5,909 | – |
| 31 March 2007 | |||||
| Germany | 614 | – | 1,207 | 6,700 | |
| Italy | 421 | 26 | 556 | 4,900 | |
| Spain | 547 | – | 449 | – | |
| UK | 661 | – | 930 | – | |
| Other Europe | 489 | 6 | 586 | – | |
| Europe | 2,732 | 32 | 3,728 | 11,600 | |
| Vodacom | 221 | – | 129 | – | |
| Other Africa and Central Europe | 484 | – | 368 | – | |
| Africa and Central Europe | 705 | – | 497 | – | |
| India | 111 | 1 | 28 | – | |
| Other Asia Pacific and Middle East | 444 | 275 | 290 | – | |
| Asia Pacific and Middle East | 555 | 276 | 318 | – | |
| Common Functions | 216 | – | 568 | – | |
| Group | 4,208 | 308 | 5,111 | 11,600 | |
Notes:
- (1)
- Includes goodwill, other intangible assets and property, plant and equipment.
- (2)
- Includes additions to property, plant and equipment and computer software, reported within intangible assets.