For those interested, an extract from the BBC Annual Report about New Video Channel America, LLC, the special purpose vehicles that jointly owns BBC America with AMC Networks.... (“NVCA”)
"The cash flow projections used in determining value in use are based on the current business plan approved by management, which covers a five-year period after which cash flows have been extrapolated using an expected long-term growth rate of -5.0% (2021: -5.1%).
A discount rate of 7.5% (2021: 8.5%) has been applied to the cash flows.
As a result of the changes in this market, management made the decision to impair the value of the Group’s share in the channel by £2 million (2021: £44 million) as a result of the annual impairment review. The remaining investment balance of £136 million (2021: £132 million) reflects confidence in the channel’s future profitability."
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