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SIGNIFICANT CHANGES IN THE STATE OF AFFAIRS

The significant change in the state of affairs of the Group during the year included the sale of the Group’s interest in Roadshow Distributors
which was announced on 15 August 2007. Prior to the sale Roadshow Distributors was an equity accounted associated company. The
consideration received was $129,440,000, comprising cash proceeds of $95,000,000 and extinguishment of loans totalling $34,440,000.
The profit on the sale before income tax was $64,381,000.

OPERATING AND FINANCIAL REVIEW

Overview of the Group

The Group achieved profit before income tax and minority interest of $146,823,000 (2007: $102,432,000) being 43.3% above the prior
year result. The profit included a gain on the sale of the Group’s equity accounted interest in Roadshow Distributors of $64,381,000
($37,977,000 net of income tax). The gain was announced to the market in August 2007 and has been recorded as an individually significant
item.

The normalised result, being profit before individually significant items, discontinued operations, minority interest and income tax was
$75,623,000 (2007: $65,777,000) and represented an increase of $9,846,000 or 15% above the prior year result. Net profit after individually
significant items and income tax was $99,369,000 and compares to a profit of $82,195,000 in the previous year, an increase of 20.9%.

2008 2007
Dis-Individually Dis-Individually
Normalised continued significant Normalised continued significant
result * operations items Total result * operations items Total
$’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000
Entertainment
Cinema Exhibition Domestic 34,293 — — 34,293 36,667 — (2,590) 34,077
Cinema Exhibition International 6,297 — 8,957 15,254 1,526 — (3,300) (1,774)
Hospitality & Leisure
Hotels 30,861 — — 30,861 25,107 — — 25,107
Thredbo Alpine Resort 14,938 — — 14,938 13,312 — (1,424) 11,888
Leisure/Attractions 974 — — 974 771 — — 771
Entertainment Technology
Atlab Holdings Pty Limited 169 — (4,253) (4,084) 2,705 — — 2,705
Technology — other 3 — — 3 313 — — 313
Strategic Investments
Other
Available-for-sale investments 402 — — 402 430 — 20,356 20,786
Property 2,744 — — 2,744 8,415 — — 8,415
Unallocated revenues
and expenses (13,059) — — (13,059) (10,676) — — (10,676)
Discontinued operations
Roadshow Distributors — 2,115 64,381 66,496 — 15,112 — 15,112
Pier 26 Bar and Café — — — — — 1,025 7,476 8,501
77,622 2,115 69,085 148,822 78,570 16,137 20,518 115,225
Finance revenue 3,354 — — 3,354 1,312 — — 1,312
Finance costs (5,353) — — (5,353) (14,105) — — (14,105)
Normalised result
Income tax expense
75,623 2,115 69,085 146,823
(20,904)
65,777 16,137 20,518 102,432
(19,928)
Income tax (expense)/benefit
from discontinued operations (26,404)
99,515
(333)
82,171
Minority interest (146) 24
82,195Net profit 99,369

* Normalised result is profit/(loss) before individually significant items, discontinued operations, minority interest and income tax.