The Digital Television column of the Group's profit and loss account on page 42 comprises the 50% share of the loss before taxation of the Group's joint venture interest in ONdigital, the 37.7% share of ITV2 and the 20% share of GMTV2, together with the net costs in respect of Carlton's digital channels, Carlton Online and the financing cost in the period of the investment in digital television activities, which is calculated on the project funding at the average interest rate earned on cash deposits. The tax relief in relation to Digital Television includes the Group's share of consortium relief.

 
3 OPERATING PROFIT

	1999 £m	1998 £m
Turnover	1,967.7	1,867.7
Less: Share of joint ventures' turnover	(29.6)	(25.6)
Group turnover	1,938.1	1,842.1
Cost of sales (including Percentage Qualifying Revenue)	(1,324.6)	(1,213.7)
Gross profit	613.5	628.4
Distribution costs	(105.3)	(94.6)
Administrative expenses	(226.6)	(225.4)
Exceptional operating charges	(11.6)	-
Group operating profit	270.0	308.4
Operating profit is stated after charging:
Auditors' remuneration (1)	0.9	0.8
Hire of plant and machinery	5.1	4.7
Other operating lease rentals	22.3	18.3
Depreciation of tangible fixed assets	68.1	54.0
Amortisation of intangible fixed assets	2.3	4.0
Research and development costs	10.7	10.9

(1) The Group employs PricewaterhouseCoopers on assignments additional to their statutory audit duties where their expertise and experience with the Group are important, principally for tax advice and due diligence reporting on acquisitions, or where they are awarded assignments on a competitive basis. During the year PricewaterhouseCoopers earned fees for non-audit services totalling £1.5m (1998: £1.4m).