Jetix Europe N.V. Announces Results for the Year Ended September 30, 2004

Jetix Europe N.V. Announces Results for the Year Ended September 30, 2004 AMSTERDAM, The Netherlands and LONDON, December 8 /PRNewswire-FirstCall/ -- - Revenues (adjusted to include our share of non-consolidated joint ventures) up by 12% to $170.7 million - Advertising revenues up 42% to $42.8 million - EBITDA(1) down by 9% to $51.0 million. Prior to relocation costs, EBITDA up by 4% to $58.0 million - EPS (diluted) up by 50% to 6.9 cents per share. Prior to relocation costs, EPS (diluted) up by 250% to 16.1 cents per share - Operating cash flow up by 196% to $30.9 million - Channel subscribers grow by 3.5 million to 38.3 million households - Strong financial position: $86.0 million in cash balances and no debt Jetix Europe N.V. (Jetix Europe or the Company), formerly Fox Kids Europe N.V., (AMEX: JETIX; Reuters JETIX.AS; Bloomberg: JETIX.NA), the leading pan-European integrated kids' entertainment company, today announced its financial results for the year ended September 30, 2004. Revenues (adjusted to include our share of non-consolidated joint ventures) increased by 12% to $170.7 million and net income increased by 52% to $5.8 million. After adjusting for the non-recurring costs of relocating our UK and French operations,(2) net income increased by 255% to $13.6 million. Subscribers increased by 3.5 million to 38.3 million households in 58 countries as at September 30, 2004. Paul Taylor, Chief Executive Officer said: "This has been a great year for us and I am delighted to announce yet another strong set of results from Jetix Europe. I am also pleased that we are seeing increasing benefits from being part of The Walt Disney Company (Disney), the world's leading company in family entertainment. One of the most important of these benefits is the creation of a new and exciting global programming alliance with Disney called Jetix. We hope that this alliance will increase the amount of programming that we co-produce with Disney, thereby optimising our cash investment in programming whilst improving the quality of our shows even further. The first Jetix co-productions of W.I.T.C.H. and Super Robot Monkey Team Hyperforce Go! are nearing completion and will be delivered during the first half of the 2005 fiscal year. Early indications are that these shows are going to meet our high expectations. The Jetix branded blocks airing on our channels, which we are using to ensure a smooth transition from Fox Kids to our new name, have experienced tremendous success since launch and have secured leadership positions in most markets. As discussed in our interim announcement, our programme distribution business has experienced a drop in revenues due to a reduction in the volume of rights acquired for shows outside of our core territories of Europe and the Middle East. Our consumer products business continues to perform well. In particular, Power Rangers merchandise, which was introduced into the Disney Stores in January 2004, is thriving, strengthening the boys proposition for the Disney Stores whilst improving the retail presence for our property. This is another example of the growing symbiotic relationship between Jetix Europe and Disney. I am very proud to have been appointed Chief Executive Officer and will continue to focus my efforts on the expansion of Jetix channels in Europe and the Middle East and the strengthening of our relationship with Disney, our majority shareholder. I am confident of our continued success." Martin Weigold, Chief Financial Officer, added "We have delivered another strong set of results. Our focus remains on increasing shareholder value and cash generation within the business and, in this respect, we are pleased that we have substantially increased earnings per share and operating cash flow from last year. Our financial position remains solid as ever with no debt and $86.0 million of cash balances." Operating Review Channels and Online - Subscribers grow by 3.5 million households to 38.3 million as at September 30, 2004 - Channels broadcasting in 58 countries via 14 channel feeds in 17 languages - Transition to Jetix name for channels on schedule - Strong ratings performance, particularly in the Netherlands, UK and France - Specialist unit established to increase pan-European and cross media advertising campaigns - Jetix interactive service successfully launched in the UK via Playjam on Sky Active Subscriber numbers grew by 3.5 million to 38.3 million households reinforcing our position as the most widely distributed kids' channel in Europe and the Middle East. As at September 30, 2004, our channels broadcast in 58 countries via 14 channel feeds in 17 languages. We have continued the introduction of the Jetix name that we began in the first half of the year with the launch of Jetix branded blocks. These blocks have been very successful, securing leadership positions in most markets. Strong block performances have also boosted overall channel averages in key markets such as the Netherlands, where our channel remains the market leader averaging over 35%(3) market share, more than 10 share points over our nearest competitor. Our UK channel, operating in one of the most competitive kids markets in the world, showed an 11%(4) increase in ratings year-on-year while all other leading kids channels in the UK saw year-on-year declines. In France, our channel showed increases in all kids demographics, especially in our core target group of kids aged 4-10, where our market share grew by 57%(5) over the previous period. Full renaming has already taken place successfully in France and, subsequent to our fiscal year end, in Scandinavia. We expect that all our channels will be renamed by June 2005. The newly renamed Jetix Kids Cup (the award-winning international football championship for kids) was also very successful. Over one million kids played in the qualifying tournaments with a final event taking place at the Manchester United Soccer School at Disneyland Resort Paris. Advertising continues to increase in significance as a proportion of our channel revenues. As well as improving our ratings performance, we have extended the broadcast hours of our channels in the UK and Spain thereby increasing the number of advertising spots that we are able to sell to advertisers. We now have four channels that are on air for 24 hours per day: France, Spain, Italy and the UK. We aim to increase the number of channels broadcasting 24 hours per day in the future. Other initiatives to increase advertising revenues implemented during the year include the creation of a dedicated sales unit to build campaigns across media including broadcast, online, press and interactive, producing a unique market offering as well as serving pan-European clients. As the only advertising supported kid's channel that broadcasts in all five of the major European markets, we are also very well placed to benefit from advertisers' increasing interest in pan-European campaigns. These and other initiatives are now bearing fruit with a 30% increase in the number of new brands being advertised on our channels over the previous fiscal year. On the back of the success of Totally Spies!, we have entered into an exclusive first look agreement with French producer Marathon, which covers their entire kids' output for the next three years. As part of this agreement, we will be co-producing three new series of 52 episodes over the next four years. The first of these co-productions is entitled Galaxy High and is due for delivery in 2006. We have also made significant progress in our interactive business. In April we launched our interactive games service on Sky Active, reaching seven million households in the UK. Combined with distribution on Telewest, this brings the reach of this service to over eight million homes. We expect to launch this service on NTL within the next six months thereby making it available to all pay TV households within the UK. Programme Distribution - Library expanded with addition of 271 new episodes - Two new Jetix co-productions underway with Disney - Co-production underway with SIP Animation for A.T.O.M. - Alpha Teens on Machines - Co-production underway with Sav! The World, Super RTL and France 3 for Oban Star Racers - Output deal concluded in Russia with CTC - First Jetix branded block in Germany on free TV We have taken delivery of 271 new episodes during the year, up from 205 last year, primarily as a result of increased acquisition activity. Titles delivered include new series such as Sonic X, Shaman King, Tutenstein and Daigunder the Battle Robot, as well as additional seasons of Power Rangers Dino Thunder, What's with Andy and RoboRoach. Although the number of episodes added to our library increased over the prior year, the number of episodes for which we acquired rights outside of Europe and the Middle East fell, and this led to a fall in revenues from programme distribution. Our shows continue to perform strongly on free television. Power Rangers ranks number one in its timeslot in four out of the five major European territories. Joining Power Rangers success is newly acquired Sonic X which ranked number one in its timeslot among all kids in France. On the back of the strong ratings performances in France and other markets, we have acquired another 26 episodes bringing the number of episodes of this very successful series in our library to 78. Among the flagship titles acquired this year, both Sonic X and Emmy award-winning Tutenstein, have already been sold in all five major European territories. As part of our new global programming alliance with Disney, we entered into a co-production agreement for a new series, Super Robot Monkey Team Hyperforce Go! The first few episodes of this 26 half-hour episode series were delivered in September and, based on positive feedback from broadcasters, we expect to commission a further season of this series. This joins our other Jetix co-production, W.I.T.C.H., that is being produced with SIP Animation and which has already generated extensive interest from broadcasters, having been pre-sold in four of the five major European territories already. We expect to announce further co-productions with Disney in the coming year. We also entered into an agreement with SIP Animation for the co-production of A.T.O.M. - Alpha Teens on Machines, which features a rebellious teen team of unlikely action heroes who have the task of tracking down and catching 100 of the worst villains and the mastermind who set them free from prison. We are very excited about the prospects for this series which is scheduled to debut on Jetix channels in the Autumn of 2005. We also commenced the production of Oban Star Racers, a 26 episode co-production with Sav! The World, Super RTL and France 3. The series chronicles the adventures of Molly, a feisty teenager, and the epic story of the Great Race of Oban, an intergalactic competition which takes place every 10,000 years to determine the balance of powers within the Galaxy. This series is expected to begin delivery in the first quarter of our 2006 fiscal year. An important part of our strategy with respect to free television is the establishment of branded blocks with leading free television broadcasters around Europe. As part of this strategy, we concluded a three-year output deal in Russia with CTC, which reaches approximately 40 million homes. This complements our existing branded block in Russia with Ren-TV. In Germany, we concluded a three-year agreement with Kabel 1, the first of our free TV blocks to be branded as Jetix. The block began airing on October 30, 2004 and airs for one and a half hours every week on Saturday mornings. As at September 30, 2004, there were 142 episodes in progress including Oban Star Racers, W.I.T.C.H., Super Robot Monkey Team Hyperforce Go!, A.T.O.M. - Alpha Teens on Machines and a new season of Sonic X. Consumer Products - Power Rangers performing strongly following introduction to all Disney Stores within Europe - Licensing and merchandising rights secured to Sonic X - Appointed Hasbro as master toy licensee for A.T.O.M. - Alpha Teens on Machines - Agency rights to Oban Star Racers, PUCCA and Marathon's next three series secured - Agency rights to Totally Spies! extended until 2007 Our flagship property, Power Rangers, continues to perform strongly and, following the appointment of Disney Consumer Products (DCP) as agent at the beginning of the fiscal year, merchandise based on this property is on sale in every Disney Store throughout Europe. Along with a strong performance from master toy licensee Bandai, this has ensured that DCP has outperformed the minimum guarantee in respect of this property for the first year of the three-year term and ensures that we are well placed to capitalise on this property in the coming fiscal year. Other properties which performed particularly well for us this fiscal year included the Jetix and Fox Kids brands, PUCCA, Sonic X and Shaman King. Securing rights to strong new properties is important to our future growth. Pursuant to this objective we have continued to expand our consumer products portfolio by adding the worldwide (excluding North America and Asia) licensing and merchandising rights to the television and video rights that we had already acquired for Sonic X, the latest incarnation of the iconic property, Sonic the Hedgehog. Additionally, we secured the licensing rights for Oban Star Racers and, as part of a co-production agreement with Marathon, we will act as licensing agent for the next three series that we will co-produce with them. We also renewed our licensing and merchandising rights to Marathon's top-rated animated series Totally Spies! in all territories in Western Europe (excluding Germany, Greece and Austria) until 2007. There continues to be strong interest in our properties for licensing purposes. For example, we have already appointed FEVA as the master toy licensee for Sonic X and Hasbro, one of the largest toy manufacturers in the world, as the master toy licensee for A.T.O.M - Alpha Teens on Machines. Home entertainment remains an important part of our consumer products business, and the strongest properties in this respect were Spiderman and Power Rangers, distributed by Buena Vista Home Entertainment, and Shaman King and Sonic X which are represented by Jetix Consumer Products. Our publishing activities, which cover magazines based on our channels as well as specific properties within our library, also had a good year and saw the launch of the first ever Jetix branded magazine in the UK. Our promotions activities also performed well. Our first pan-European promotion with McDonalds featuring Gadget and the Gadgetinis, Medabots, Power Rangers and Totally Spies! was a major success with millions of toy premiums being sold. On the back of this success we have secured another pan-European promotion for 2005. Ch!pz, the band formed last year in conjunction with Glam Slam and EMI Music Publishing continues to go from strength to strength in the Netherlands with its first album achieving gold status. Subsequent to the year end, they released their fourth single, 1001 Arabian Nights, which has already achieved platinum status. We expect to conclude an agreement shortly which will see Ch!pz debut in both the UK and Germany in 2005. Financial Review Basis of Presentation To enhance comparability, the Company has also presented operating results on a pro forma basis, which exclude the impact of non-recurring relocation charges recognised during the year. These charges relate to the relocation of the Company's UK and French based operations to Disney's premises within these markets. The Company believes that pro forma results provide additional information useful in analysing the underlying business results. Revenues Revenues (adjusted to include our share of non-consolidated joint ventures) increased by 12% to $170.7 million. Channel and online operations achieved a 21% increase in revenues to $132.7 million, as subscription revenues rose 16% to $86.9 million and advertising revenues increased 42% to $42.8 million. Other channel and online revenues generated from premium rate calls, research and interactive services amounted to $3.0 million. The primary drivers of the growth in our channel and online revenues were strong ratings performances by our channels in the Netherlands, UK and France as well as increased distribution of our channels. Revenues from programme distribution were $24.7 million, down by 21% on last year but better than the guidance given in our half-year results. The primary reason for this decline was the reduction in the number of episodes for which we acquired rights outside of Europe compared to the previous year. Our consumer products revenues grew sharply by 18% to $13.3 million primarily driven by strong performances from Power Rangers, the Jetix and Fox Kids brands, PUCCA, Sonic X and Shaman King. Overall, our revenues also benefited significantly from the weakening of the dollar, our reporting currency, versus the euro and sterling. Costs and Expenses Costs and expenses increased by 26% to $114.4 million. The main reasons for this increase were the weakening of the US dollar, our reporting currency, versus sterling and the euro, the two currencies in which the majority of our costs and expenses are incurred, as well as non-recurring charges recognised in respect of the relocation of our UK and French based operations to Disney's premises within these markets. The charge recognised includes a provision in respect of the anticipated costs of disposing of our existing lease commitments, I.T. reconfiguration, move costs, additional depreciation charges incurred as a result of the relocation as well as redundancy costs resulting from the contracting out of certain functions to Disney. The costs that were recognised in respect of the relocation were $8.0 million compared to our previous estimate of $6.0 million. This was due to the treatment of $3.1 million as an operating lease incentive which, under US GAAP, is deferred and recognised in our income statement over the next three years. On a pro forma basis, costs and expenses increased by 18% to $107.3 million. The primary reason behind the increase was the weakening of the US dollar against sterling and the euro. EBITDA(6) EBITDA fell by 9% to $51.0 million as a result of the relocation costs referred to above. On a pro forma basis, EBITDA increased by 4% to $58.0 million. On a pro forma basis, channel and online operations achieved a 16% increase in EBITDA to $47.7 million. On a pro forma basis, EBITDA from programme distribution fell by 23% to $15.7 million due to lower revenues as discussed above. On a pro forma basis, our consumer products operation saw a 38% improvement in EBITDA to $5.5 million primarily as a result of the revenue increases referred to above, and the costs of restructuring our German operations that were incurred last year of $0.25 million. Amortisation, Impairment and Depreciation Programme amortisation and impairment fell by 13% to $43.0 million due to lower programme distribution revenues as well as an increase in the estimated future income from our channels. Programme amortisation includes an impairment charge of $5.0 million, of which $2.6 million results from a decision to no longer run certain titles within our library on our channels that are not considered to be core to the Jetix brand. Depreciation increased by 14% to $2.8 million, as certain leasehold improvements and fixtures and fittings were written down to fair value following the relocation of our UK and French based operations. On a pro forma basis, depreciation fell by 23% to $1.9 million. Financial Income Financial income fell from $1.7 million to $1.0 million due to the prior year benefiting from a $1.3 million gain on settlement of the long term notes receivable and payable. Income Before Tax and Minority Interest Income before tax and minority interest increased by 35% to $7.6 million. The primary drivers of this increase were strong performances by our channel and consumer products businesses and a foreign exchange gain, partially offset by the costs of relocating our UK and French based operations. On a pro forma basis, income before tax and minority interest increased by 178% to $15.6 million. The primary drivers of this increase were a $7.9 million improvement in operating profits within the channel and online operations, a $2.9 million improvement in operating profit from our consumer products business and a favourable foreign exchange movement, partially offset by a reduction in financial income and income from equity in affiliates. Minority Interest The reduction in participation of the minority interest is due to our channel in Poland becoming loss making following expiration of a minimum guarantee in April 2003 and the acquisition of our partner's share in Fox Kids Israel in December 2002. Taxation The effective tax rate was 26% compared to 22% in the prior fiscal year. On a pro forma basis the effective tax rate was 14%. The income tax charge for the year comprised income, withholding and capital taxes payable amounting to $3.3 million, partially offset by a deferred tax credit of $1.3 million. Earnings per Share Basic earnings per share increased by 54% from 4.6 cents per share to 7.1 cents per share due to the increases in income referred to above. On a pro forma basis, basic earnings per share increased by 257% to 16.4 cents per share after adjusting for the costs of relocating our UK and French based operations. Diluted earnings per share increased by 50% to 6.9 cents per share. On a pro forma basis, diluted earnings per share increased by 250% to 16.1 cents per share. Cash Flow Operating cash flow increased by 196% to $30.9 million. The primary reasons for this increase were the improvements in the trading performance of the Company compared with the previous year, a reduction in the cash invested in programming and a favourable working capital movement. The favourable working capital movement included $1.9 million relating to amounts owed to employees in respect of the exercise of share options during the fiscal year. Cash flow increased by $44.3 million to $34.6 million. This increase was due to the increase in operating cash flow outlined above, $4.3 million of cash raised through the new issue of shares referred to above and the prior period acquisition of certain Israeli assets for cash consideration of $20.5(7) million in December 2002. As at September 30, 2004, the company had cash balances of $86.0 million and was debt free(8). Reporting Currency As a pan-European media business, the Company and its subsidiaries generate revenues and incur costs in many different currencies. The three currencies in which most of our transactions are originated are the euro, US dollar and sterling. To date, we have managed successfully to minimise the impact of foreign exchange movements on our net income through the use of natural hedges i.e. matching revenues and costs incurred in different currencies. For example, in the current fiscal year, the dollar weakened by 13% and 12% against the euro and sterling respectively versus the prior fiscal year. However, the impact of foreign exchange at the net income level was less than one percent of revenue. Due to the growing significance of our channel and online business which incurs most of its revenues and expenses in euros, and the introduction of the euro which has led to an increase in usage in currencies other than the dollar, we expect the euro to become the currency in which most of our revenues and costs will be originated. Furthermore, the euro is expected to increase in significance for Jetix Europe in the future. Therefore as well as continuing our strategy of natural hedging, we are currently investigating changing our reporting currency to the euro instead of the US dollar. Corporate Governance The Tabaksblat Code of Corporate Governance On December 9, 2003, the Tabaksblat Code of Corporate Governance (the Code) was published, consisting of 21 principles and 113 best practice provisions regarding corporate governance for Dutch companies listed on the stock exchange. The Code intends to bring the corporate governance code, which had been drawn up five years ago by the Peters Committee, into line with the requirements of today. The Board of Management and the Supervisory Board agree with the basic principle that the Tabaksblat Committee applied, that the Company is a long-term form of collaboration between a number of different stakeholders including shareholders and other providers of capital, employees, customers, suppliers, the government and civil society. The Board of Management and the Supervisory Board have overall accountability for achieving the right balance between these interests, generally with a view to ensuring the continuity of the Company. We are committed to ensuring good corporate governance. In anticipation of the Company becoming subject to the Code, the Company has reviewed it and taken extensive external advice on its practical implications. A consultation process has been set up both internally and with Disney, the majority shareholder and holder of the priority shares in the Company, in order to review all of our existing practices in this area, identify any areas of current non-compliance and recommend appropriate measures to ensure an appropriate level of compliance in future. This may involve changes to our existing procedures and the Company's Articles of Association. In addition, we welcome the views of other shareholders regarding this subject. The Code is effective for financial years commencing on or after January 1, 2004. Because our financial year-end falls on September 30 each year, the first year that the Code will be effective for us is the year ended September 30, 2005. Notwithstanding this, we believe it is helpful to indicate as soon as possible the Company's general approach to the Code. Accordingly, a full explanation of how we expect to comply with the Code, along with a report on progress of implementation to date and any potential problems foreseen will be included in our annual report for the year ended September 30, 2004. We also plan to place this item on the agenda for discussion at the next General Meeting of Shareholders. Jetix Europe N.V. Consolidated Statement of Income for the years ended September 30, 2004 and September 30, 2003 In US $'000 Year to Year to Year to Year to 30 30 September 30 30 September 2004 September September 2004 2004 2003 Non-recurring Relocation Charges(9) Pro forma(10) REVENUES(11) 165,345 - 165,345 146,825 Costs and expenses (114,394) (7,097) (107,297) (90,843) EBITDA 50,951 (7,097) 58,048 55,982 Programme amortisation (43,008) - (43,008) (49,373) and impairment Depreciation and (2,796) (912) (1,884) (2,451) impairment Operating income 5,147 (8,009) 13,156 4,158 Financial income and 1,005 - 1,005 1,671 expense, (net) Gain/(loss) on foreign 648 - 648 (1,861) exchange Equity in income of 810 - 810 1,655 affiliates Income before tax and 7,610 (8,009) 15,619 5,623 minority interest Tax (1,972) 254 (2,226) (1,239) Minority interest 190 - 190 (556) NET INCOME 5,828 (7,755) 13,583 3,828 Jetix Europe N.V. Earnings per Share for the years ended September 30, 2004 and September 30, 2003 Cents per share Year to Year to Year to 30 September 30 September 30 September 2003 2004 2004 Pro forma(12) Basic Earnings per share 7.1 16.4 4.6 Diluted Earnings per share 6.9 16.1 4.6 Basic weighted average number 82,618 82,618 82,519 of ordinary shares outstanding, in thousands Diluted weighted average number 84,335 84,335 82,614 of ordinary shares outstanding, in thousands Jetix Europe N.V. Consolidated Balance Sheet as at September 30, 2004 and September 30, 2003 In US $'000 30 September 30 September 2004 2003 Assets Cash and cash equivalents 86,022 51,450 Accounts receivable net of allowances 54,849 43,768 Amounts due from related parties 16,849 10,917 Programme rights, net 116,207 125,225 Investments in equity affiliates 2,134 1,210 Property and equipment, net 3,054 4,030 Deferred income taxes 12,101 10,770 Goodwill, net 28,016 28,016 Non current amounts due from related 7,672 - parties Total Assets 326,904 275,386 Liabilities, Minority Interests & Shareholders' Equity Accounts payable 10,253 14,181 Accrued liabilities and deferred revenues 68,470 43,323 Amount due to related parties 14,586 12,539 Other non current liabilities 10,798 - Minority Interests 1,184 1,340 Total Liabilities and Minority Interests 105,291 71,383 Ordinary shares 21,629 21,426 Additional paid in capital 449,751 445,659 Other reserves (204,114) (204,114) Accumulated other comprehensive 6,475 (1,012) income/(loss) Accumulated deficit (52,128) (57,956) Total Shareholders' Equity 221,613 204,003 Total Liabilities, Minority Interests & 326,904 275,386 Shareholders' Equity Jetix Europe N.V. Consolidated Cash Flow Statement for the years ended September 30, 2004 and September 30, 2003 In US $'000 Year to Year to 30 September 30 September 2004 2003 OPERATING ACTIVITIES Net income 5,828 3,828 Adjustments to reconcile net income to net cash flows used in operating activities: Depreciation and impairment 2,796 2,451 Amortisation and impairment of programme 43,008 49,373 rights Provision for doubtful debts (472) (537) Equity in income of affiliates (810) (1,655) Minority interests (190) 556 Deferred tax (1,331) (615) Changes in operating assets and liabilities Working capital 12,898 1077 Other non current assets and liabilities 3,126 - Programme rights (33,990) (44,068) Net cash flows generated by operating 30,863 10,410 activities INVESTING ACTIVITIES Repayments for equity affiliates - 2,297 Acquisition of minority shares - (20,800) Purchases of property and equipment (1,169) (1,242) Net cash flows used in investing activities (1,169) (19,745) FINANCING ACTIVITIES Exercise of Stock Options 4,295 - Net cash flows provided by financing 4,295 - activities NET INCREASE /(DECREASE) IN CASH AND CASH 33,989 (9,335) EQUIVALENTS FROM OPERATING, INVESTING AND FINANCING ACTIVITIES NET INCREASE/ (DECREASE) IN CASH DUE TO 583 (415) FOREIGN CURRENCY FLUCTUATIONS NET INCREASE/ (DECREASE) IN CASH AND CASH 34,572 (9,750) EQUIVALENTS CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR 51,450 61,200 CASH AND CASH EQUIVALENTS, END OF YEAR 86,022 51,450 Jetix Europe N.V. Operating Results by Business Segment for the years ended September 30, 2004 and September 30, 2003 In US $'000 Year to Year to Year to Year to 30 30 September 30 30 September September 2004 September 2004 2004 2003 Non-recurring relocation charges(13) Pro Forma(14) Business Segment Revenues Channels & online 132,728 - 132,728 109,383 Programme 24,681 - 24,681 31,362 distribution Consumer products 13,332 - 13,332 11,272 170,741 - 170,741 152,017 Less : (5,396) - (5,396) (5,192) unconsolidated revenues of equity affiliates Revenue 165,345 - 165,345 146,825 EBITDA Channels & online 42,118 (5,534) 47,652 41,239 Programme 15,551 (162) 15,713 20,449 distribution Consumer products 5,170 (361) 5,531 4,021 Shared costs not (11,888) (1,040) (10,848) (9,727) allocated to segments 50,951 (7,097) 58,048 55,982 Operating Income Channels & online 13,565 (6,247) 19,812 11,926 Programme 2,256 (188) 2,444 3,048 distribution Consumer products 1,508 (418) 1,926 (931) Shared costs not (12,182) (1,156) (11,026) (9,885) allocated to segments 5,147 (8,009) 13,156 4,158 Jetix Europe N.V. Operating Results by Geographic Segment for the Years ended September 30, 2004 and September 30, 2003 In US $'000 Year to Year to Year to Year to 30 30 September 30 September September 30 2004 September 2004 2004 Non-recurring 2003 relocation charges(15),(16) Pro forma(17) Geographic Segment Revenues United Kingdom & 49,567 - 49,567 40,075 Ireland France 20,510 - 20,510 17,113 Benelux 20,217 - 20,217 15,286 Italy 18,018 - 18,018 14,408 Spain & Portugal 14,427 - 14,427 12,649 Germany 13,813 - 13,813 9,846 Central Europe 13,690 - 13,690 11,679 Middle East 8,106 - 8,106 8,309 Nordic Region 6,944 - 6,944 6,514 Poland 3,738 - 3,738 6,276 Other 1,711 - 1,711 264 Americas - - - 9,598 170,741 - 170,741 152,017 Less: (5,396) - (5,396) (5,192) unconsolidated revenues of equity affiliates Revenue 165,345 - 165,345 146,825 EBITDA United Kingdom & 25,915 (1,999) 27,914 22,320 Ireland France 4,812 (1,197) 6,009 4,920 Benelux 7,985 - 7,985 5,945 Italy 7,765 - 7,765 6,351 Spain & Portugal 4,944 - 4,944 4,591 Germany 3,981 - 3,981 1,916 Central Europe 2,976 (1,452) 4,428 4,620 Middle East 2,871 - 2,871 3,444 Nordic Region 732 (912) 1,644 2,208 Poland (231) (497) 266 2,244 Other 1,089 - 1,089 192 Americas - - - 6,958 Shared costs not (11,888) (1,040) (10,848) (9,727) allocated to segments EBITDA 50,951 (7,097) 58,048 55,982 Less: depreciation, (45,804) (912) (44,892) (51,824) amortisation and impairment Operating income 5,147 (8,009) 13,156 4,158 About Jetix Europe N.V. Jetix Europe N.V., formerly Fox Kids Europe N.V., is the leading pan-European integrated kids' entertainment company with localised television channels, programme distribution and consumer products businesses. Jetix Europe and The Walt Disney Company have created and launched Jetix, a new global kids entertainment alliance which builds upon Fox Kid's success bringing action-packed, high energy entertainment and cheeky humour to kids worldwide. Jetix Europe N.V. is listed on Euronext Amsterdam Stock Exchange and is majority owned (approximately 75%) by The Walt Disney Company. Channels Jetix Europe's television channels entertain kids aged 6-14 in 58 countries and 17 languages, reaching over 38 million households across Europe and the Middle East with content tailored to suit local markets. Branded blocks air on terrestrial TV networks reaching an additional 80 million households. Jetix Europe offers interactive TV games channels through cable and satellite platforms in the UK and runs 16 localised websites which receive over 51 million page impressions every month. Programme Distribution Jetix Europe owns one of the largest libraries of kids programming in the world with over 6,600 episodes. Distributed to more than 120 terrestrial, cable and satellite channels in over 50 markets across Europe and the Middle East, the library includes major global programming franchises such as Power Rangers, Sonic X, Spiderman, X-Men and Inspector Gadget. The Jetix Europe library is serviced by Buena Vista International Television (BVITV). Consumer Products JCP (Jetix Consumer Products International) is Jetix Europe's consumer products and home entertainment business with representation in 30 European countries including fully integrated offices in the UK, France, Germany, Israel, Italy, Spain and the Netherlands as well as third party agents in other key markets. JCP's properties are sourced from the Jetix Europe library and include Sonic X and Gadget and the Gadgetinis as well as third party representation for properties such as PUCCA, Flea-bag & Friends, Shin chan, Medabots and Totally Spies. (1) Consistent with prior years, EBITDA is stated before programme amortisation, impairment and depreciation. EBITDA less programme amortisation, impairment and depreciation is equal to Operating Income. (2) Charges recognised during the year in respect of the relocation of our UK and French based operations to Disney's premises within these markets. The charge recognised includes a provision in respect of the anticipated costs of disposing of our existing lease commitments, I.T. reconfiguration, move costs, additional depreciation charges incurred as a result of the relocation as well as redundancy costs resulting from the contracting out of certain functions to Disney. (3) SKO, Cab Homes, Mon-Sun 0600-1800, Kids 6-12 years, TVR Oct 03-Sep 04 Vs Oct 02-Sep 03 (4) BARB, Cab/Sat Homes, Mon-Sun, All broadcast day, Kids 4-15, TVR, includes time shifted data Oct 03-Sep 04 Vs Oct 02-Sep 03 (5) Mediacabsat, Cab/Sat Homes, Mon-Sun, All broadcast day, Kids 4-10, Share, June 04 - August 04 Vs. Dec 03 to Jun 04 (6) Consistent with prior years, EBITDA is stated before programme amortisation, impairment and depreciation. EBITDA less programme amortisation, impairment and depreciation is equal to operating income. (7) In addition to the $20.5 million cash consideration, $0.3 million of professional fees directly associated with the acquisition were incurred. (8) Excluding small amounts due under leases. (9) Charges recognised during the year in respect of the relocation of our UK and French based operations to Disney's premises within these markets. The charge recognised includes a provision in respect of the anticipated costs of disposing of our existing lease commitments, I.T. reconfiguration, move costs, additional depreciation charges incurred as a result of the relocation as well as redundancy costs resulting from the contracting out of certain functions to Disney (10) Pro forma results are stated after excluding non-recurring relocation charges (11) Year to 30 Year to 30 September 2004 September 2003 Revenue 165,345 146,825 Our share of non-consolidated joint ventures 5,396 5,192 Revenue (adjusted to include our share of 170,741 152,017 non-consolidated joint ventures) (12) Pro forma results are stated after excluding non-recurring relocation charges (13) Charges recognised during the year in respect of the relocation of our UK and French based operations to Disney's premises within these markets. The charge recognised includes a provision in respect of the anticipated costs of disposing of our existing lease commitments, I.T. reconfiguration, move costs, additional depreciation charges incurred as a result of the relocation as well as redundancy costs resulting from the contracting out of certain functions to Disney. (14) Pro forma results are stated after excluding non-recurring relocation charges. (15) Charges recognised during the year in respect of the relocation of our UK and French based operations to Disney's premises within these markets. The charge recognised includes a provision in respect of the anticipated costs of disposing of our existing lease commitments, I.T. reconfiguration, move costs, additional depreciation charges incurred as a result of the relocation as well as redundancy costs resulting from the contracting out of certain functions to Disney. (16) Our channels covering Central and Eastern Europe, Scandinavia and Poland are also based in the UK. (17) Pro forma results are stated after excluding non-recurring relocation charges. DATASOURCE: Jetix Europe Ltd CONTACT: For further information or visuals please contact:Press: Jenny Burbage or Jo Hadfield Tel: +44(0)208-222-5910 Tel: +44(0)208-222-5915E Mail: E Mail: Investors: Isabel Vilela Tel: + 44(0)20-8-222-5813 E mail: