ITF

NOTES (CONT.) (FORMING PART OF THE FINANCIAL STATEMENTS) 8. Revenue from contracts with customers (a) Disaggregation of revenue from contracts with customers Point in time Over time Point in time Over time $000 $000 $000 $000 Subscriptions and authorisation fees 940 2,270 962 2,258 Sponsorship, competition and television 7,617 49,227 7,102 34,033 Data sales - 12,600 - 12,658 Development Fund income (GSDF and WTDF) 2,801 - 2,718 - Olympics - 5,774 181 5,773 Anti-doping 18 4,599 3 4,284 Other income 1,667 1,204 1,701 1,162 13,043 75,674 12,667 60,168 (b) Assets and liabilities related to contracts with customers The group has recognised the following assets and liabilities related to contracts with customers: 2019 2018 $000 $000 Current contract assets (see note 28) 5,793 1,513 Current contract liabilities 20,446 39,403 Non-current contract liabilities - - Total contract liabilities (see note 32) 20,446 39,403 9. Professional tennis 2019 2019 2018 2018 $000 $000 $000 $000 Operating Strategic Operating Strategic Davis Cup participation payments 20,757 - 12,133 - Davis Cup event expenses 3,130 253 3,225 1,547 Fed Cup participation payments 6,792 - 3,396 - Fed Cup event expenses 2,675 475 1,874 172 Hopman Cup expenses 22 - 31 - Data sales activity costs 9,038 - 9,068 - Other Professional Tennis department costs 7,639 - 7,364 193 50,053 728 37,091 1,912 Professional Tennis Strategic Initiative costs arise from the due diligence and legal costs required to reform the Fed Cup, with the top tier of the event now being a 12-team Finals to be held in Budapest in April 2020. In addition, further costs were required to support the first year of the Davis Cup Finals. 2018 Timing of revenue recognition The group derived revenue from the transfer of goods and services over time and at a point in time for the following revenue streams: Other Professional Tennis department costs include ITF World Tennis Tour (men's, women's, juniors), Uniqlo Wheelchair Tennis Tour, ITF Seniors Tour, officiating, Olympic & Paralympic Games, ITF Beach Tennis Tour, data sales, Grand Slam Board contribution and Tennis Integrity Unit contribution. Timing of revenue recognition 2019 The group does not expect to have any contracts where the period between the transfer of the promised goods or services to the customer and payment by the customer exceeds one year. As a consequence, the group does not adjust any of the transaction prices for the time value of money. Contract assets increased due to television rights previously fully licensed now being sold directly. A proportion of rights for 2019 were still contracted to the previous licensee that are required to be paid back to the ITF. Contract liabilities decreased with a $10m difference between advanced payments for the Davis Cup and Fed Cup licensing agreements and the release of the remaining Olympic deferred income arising from Rio 2016. In 2019, $39.4m was recognised as revenue that was included as a contract liability at the beginning of the period. 20

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