Aberdeen Select International Equity Fund II Class I (MM) (NASDAQ:JETIX)
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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: