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NOTES TO THE FINANCIAL STATEMENTS CONTINUED

NOTE 2 — SEGMENT REPORTING (CONTINUED)

Business segments

The Group comprises the following main business segments,
based on the Group’s management reporting system and the
differing risks and rewards associated with each business.

Cinema Exhibition Domestic

Includes the Australian cinema exhibition operations.

Cinema Exhibition International

Includes the International cinema exhibition operations in
Germany, The Netherlands and the United Arab Emirates.

Entertainment Technology

Includes theatre equipment supply and servicing and the
manufacture of film processors and related equipment and
the Group’s investment in the Atlab group.

Hotels

Includes the ownership, operation and management of hotels
in Australia and overseas.

Thredbo Alpine Resort

Includes all the operations of the resort including property
development activities.

Leisure/Attractions

Includes ancillary leisure and other activities including
Featherdale Wildlife Park, Pier 26 Bar and Café and the State
Theatre. Sale of the Matilda Cruises business was completed
in the prior year on 9 November 2005. Sale of the Pier 26
Bar and Café was completed on 25 June 2007.

Strategic Investments

Includes investment in Roadshow Distributors Pty Limited.
The Group’s 50% interest in Roadshow Distributors Pty
Limited was sold on 15 August 2007, refer Events
Subsequent to Reporting Date — Note 40.

Other

Includes property rental, investment properties and available-
for-sale investments.

Geographical segments

In presenting information on the basis of geographical
segments, segment revenue is based on the geographical
location of customers. Segment assets are based on the
geographical location of the assets. The Group operates
in Australia and New Zealand, Europe and the United
Arab Emirates.

Cinema Less: Dis-Con-
Cinema Exhibition Enter-Thredbo continued solidated
Exhibition Intertainment
Alpine Leisure/ Strategic Con-Leisure/ continuing
Domestic national Technology Hotels Resort Attractions Investments Other solidated Attractions operations
$’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000
2007
Business segments
Revenue and other income
External segment
revenue 110,756 287,692 17,360 110,190 49,609 13,720 — 9,694 599,021 (5,030) 593,991
Other income 2,237 — 110 37 10 7,476 — 25,665 35,535
1,825
(7,476)
—
28,059
1,825
Other unallocated
revenue
Total revenue and
other income 636,381 (12,506) 623,875
Result
Segment result 15,675 (9,879) 274 24,732 11,888 9,272 — 29,201 81,163 (8,501) 72,662
Share of net profit
of equity accounted
investments 18,402 8,105 2,744 375 — — 15,112 — 44,738 — 44,738
34,077 (1,774) 3,018 25,107 11,888 9,272 15,112 29,201 125,901 (8,501) 117,400
Unallocated revenue
and expenses (10,676) — (10,676)
Net financing costs (12,793) — (12,793)
Profit before income
tax expense 102,432 (8,501) 93,931
Income tax expense (20,261) 333 (19,928)
Profit after income tax expense 82,171 (8,168) 74,003
Minority interest 24 — 24
Net profit 82,195 (8,168) 74,027
Depreciation, amortisation
and impairment 5,425 9,719 78 5,112 4,891 626 — 2,921 28,772 (198) 28,574
Non-cash expenses/
(income) other than
depreciation, amortisation
and impairment 1,589 1,156 393 2,379 135 153 (852) (4,038) 915 — 915

NOTE 2 — SEGMENT REPORTING (CONTINUED)

Cinema
Exhibition
Domestic
Cinema
Exhibition
International
Entertainment
Technology Hotels
Thredbo
Alpine
Resort
Leisure/
Attractions
Strategic
Investments Other
Consolidated
Less: Discontinued
Leisure/
Attractions
Consolidated
continuing
operations
$’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000
2007
Individually significant items
Other income
Dividend from listed
company —
Profit on sale of
investments in listed
companies —
Profit on sale of Pier 26
Bar and Café business —
Plant and equipment
impairment write-downs
Share of impairment
write-downs in carrying
value of underperforming
cinema sites in
partnerships (2,590)
Other expenses
Settlement of legal claim —
Provision for onerous
contracts —
—
—
—
—
—
(3,300)
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
(1,424)
—
—
—
7,476
—
—
—
—
—
—
—
—
—
2,287
18,069
—
—
—
—
2,287
18,069
7,476
(2,590)
(1,424)
(3,300)
—
—
(7,476)
—
—
—
2,287
18,069
—
(2,590)
(1,424)
(3,300)
(2,590) (3,300) — — (1,424) 7,476 — 20,356 20,518 (7,476) 13,042
Cinema
Exhibition
Domestic
Cinema
Exhibition
International
Entertainment
Technology Hotels
Thredbo
Alpine
Resort
Leisure/
Attractions
Strategic
Investments Other
Consolidated
Consolidated
continuing
operations
$’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000
Assets
Segment assets 90,255 95,361 7,817 219,506 49,573 7,634 — 137,158 607,304 607,304
Equity accounted investments 108,456 17,088 6,759 2,083 — — 62,943 — 197,329 197,329
Unallocated corporate assets 21,590 21,590
Consolidated total assets 826,223 826,223
Liabilities
Segment liabilities 32,579 76,726 4,558 15,788 6,827 565 — — 137,043 137,043
Unallocated corporate liabilities 181,621 181,621
Consolidated total liabilities 318,664 318,664
Acquisitions of non-current assets 6,990 2,182 92 58,573 2,740 — — 137 70,714 70,714
Secondary reporting — geographical segments
Australia & NZ
$’000
Europe
$’000
Other
$’000
Consolidated
$’000
External segment revenue 305,402 288,589 — 593,991
Segment assets by location of assets 713,143 100,274 12,806 826,223
Acquisition of non-current assets 68,532 2,182 — 70,714