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Note: Image retouching underway but not complete. JeettixixEuEroupreoNp.Ve . N.V. Annual Review and Financial Statements 2007 J e t i x E u THAT’S ALL FOR THIS r o p e TIME. SEE YOU AGAIN N . V . A NEXT YEAR! n n u a l R e v i e w a n d F i n a n c i a l S t a t e m e n t s 2 0 0 7 CREATING CHARACTERS, Jetix Europe N.V. INSPIRING IMAGINATIONS… www.jetixeurope.com Investor Relations: Jetix Europe Limited 3 Queen Caroline Street Hammersmith London W6 9PE Telephone +44 20 8222 3600 Fax +44 20 8222 5906 Registered office: Jetix Europe N.V. Bergweg 50 1217 SC Hilversum The Netherlands OUR CHARACTERS ENGAGE KIDS, FEEDING THEIR IMAGINATIONS WITH TERRIFIC STORYTELLING… CONNECTING WITH ALL KINDS OF KIDS, GETTING INVOLVED IN THEIR LIVES… AND BECOMING THEIR FAVOURITES – THE ONES THEY WANT TO HANG OUT WITH. OUR CHARACTERS HAVE STAYING POWER, REFLECTING WHAT’S IN NOW, ADAPTING TO WHAT COMES NEXT… ATTRACTING AND INSPIRING TALENTED PEOPLE ACROSS OUR BUSINESS WITH THEIR INFECTIOUS ENERGY. 10 11 Jetix Europe N.V. Jetix Europe N.V. Annual Review and Financial Statements 2007 Annual Review and Financial Statements 2007 This is Jetix Europe We are a leading kids entertainment company Jetix Europe and Disney Content is at the heart Financial highlights with localised channels, websites, programme sales Jetix Europe is listed on the Euronext stock of our Company – Revenue and consumer products businesses across Europe exchange in the Netherlands. Our major and drives each of our and the Middle East. shareholder is a subsidiary of The Walt Disney three business lines. b166.4 million Company (Disney), which owns approximately 2006: b162.8 million 73% of the Company’s shares. We create and own great content… Channels and online which our audience loves. We invest in creating and owning new content and Jetix Europe has partnered with Disney EBITDA 1 to create the Jetix global brand alliance. we have one of the largest libraries of kids programming, with over 6,000 episodes . 74% of total 2007 revenue Jetix is a global kids entertainment brand, b69.4 million targeting kids six to 14 with a unique Our network of 15 television channels reaches over 2006: b62.4 million 50 million households across Europe and the Middle East. We have a clearly defined and focused brand… combination of adventure and cheeky We broadcast in 19 3 languages to 58 countries. which our audience recognises as the home of their favourites. Our brand focuses humour. The global alliance produces We run 18 localised websites, supporting the channels Operating profit on universal themes of adventure and cheeky humour, empowering and inspiring content which is distributed through Jetix and allowing in-depth interaction with our characters. kids wherever they are. branded channels and programme blocks Our websites immerse our visitors in games, competitions b and unique content, as well as video-on-demand, 24.5 million around the world. 2006: b18.4 million We are extending our reach… which we are currently rolling out across our network. The global Jetix allianc e2 We are also reaching our audience through new and we can now be enjoyed by more kids than ever. Our channels are in over 50 million technologies. These include IPTV distribution of our Net profit attributable to shareholders households. Our localised digital content and consumer products can be enjoyed throughout Jetix Europe channels, third party video-on-demand and mobile. Europe and the Middle East. Jetix in the US Over 95% of this division’s revenue is generated by b37.3 million subscriptions from pay television operators and advertising. 2006: b23.4 million We are developing other revenue streams, such as We’re embracing new technology… live events. to allow our audience to enjoy our content wherever and whenever they want. Diluted earnings per share We continue to develop our online websites, including the roll out of video-on-demand. We are using the latest technology to create more compelling and engaging interactive Programme distribution 43.9 cents 2006: 27.6 cents experiences across a range of different media. Jetix in Asia 13% of total 2007 revenue Operating cash flow We’re maximising the value of our characters… Jetix in We sell television programming which we own or represent whether it’s on television screens, on computer screens or in the real world. Wherever South America to other broadcasters, primarily free-to-air channels. b our audience enjoys our content we create value by engaging our audience’s imagination. These sales are serviced by Disney-ABC International 26.4 million Globally Jetix re aches: Television (DAIT). 2006: b16.9 million Contents Over 250 million households We also sell programming to our partner in the 10 This is Jetix Europe We have the right people to deliver… Jetix alliance, Disney. 12 Message from the Chief Executive the very best entertainment. Our people understand our audience, our partners and In more than 80 countries We currently sell to over 110 clients in 53 markets. the potential of the changing media environment. 14 Operating and financial review Broadcasting in 26 languages We earn licence fees from broadcasters for the right 14 Our business, markets and strategy to air our programming, generally for a limited number of runs over a specific time period. 16 Our reach 18 Channels and online Share ownership 20 Programme distribution 22 Consumer products 73% Consumer products 24 Financial review ABC Family Worldwide 26 Management Board (a subsidiary of The Walt Disney Company) 13% of total 2007 revenue 27 Supervisory Board We license rights to use our characters and properties on 29 Report of the Supervisory Board a wide range of merchandise and for home entertainment, such as DVD. We generally own or represent rights for 30 Remuneration report Europe and the Middle East. 32 Outlook and risk factors Our largest property, Power Rangers, is represented by 35 Internal risk management and control systems Disney Consumer Products (DCP). This allows us to leverage 36 Corporate governance DCP’s global scale and market power. 37 Financial statements Our in-house operation, Jetix Consumer Products (JCP), 38 Consolidated income statement s represents all of our other properties. We have a pan- European network of seven regional offices, and use agents 39 Consolidated balance sheets in more than 50 other countries. 41 Consolidated statements of changes in equity We generate revenue from royalties. In most cases we 42 Consolidated cash flow statements negotiate a minimum guarantee, together with a variable 43 Notes to the consolidated financial statements fee based on sales. 75 Company financial statements 27% of Jetix Europe N.V. Public shareholders 76 Notes to the Company balance sheets and income statements 79 Other information 80 Auditor’s Report ibc Copyright notices 1 Half hour equivalents as of September 30, 2007. 2 Disney fully owns the Jetix operations in the US, South America and Asia. 3 Including Bulgarian, which was launched after the period end. 12 13 Jetix Europe N.V. Jetix Europe N.V. Annual Review and Financial Statements 2007 Annual Review and Financial Statements 2007 Message from the Chief Executive Achievements in 2007 Revenue 1m I’m pleased to report on another good year There is shared understanding and tremendous We create content for six to 14 year-olds Strong profit growth 2005 145.3 for Jetix Europe. We delivered strong profit goodwill between Jetix Europe and Disney. so every year, as kids get older, 11% of Enhanced co-operation with Disney 2006 162.8 growth in all our divisions. As we forge ever-closer links we are our market disappears. We must constantly New SVP Programming hired 2007 166.4 uncovering new complementary strengths. renew our offering. We can only maintain We are developing the business by This year, for the first time, we aired Disney’s market share by attracting the next generation Strong performance from key franchises concentrating on our long-term strategic flagship High School Musical on Jetix channels of six year-olds. And we want them to stay b50 million distributed to shareholders EBITDA1 1m E objectives. These priorities remain unchanged. in selected markets. This global hit show has with us. 2005 49.2 Namely: to produce great content; played on Jetix channels in the Netherlands, Our biggest challenge is time itself. Priorities for 2008 2006 62.4 to strengthen our relationship with Disney; Israel, Hungary and the Czech Republic. Kids have limited leisure time and seemingly Continue content investment 2007 69.4 and to develop the Jetix offering across all Our strong performance in Central and endless choices. We must compete in a Renew key distribution deals 1 Consistent with prior years, EBITDA is operating profit stated before programme media. We made solid progress on all fronts Eastern Europe has been particularly satisfying. crowded market for a share of their time. amortisation, impairment and depreciation. this year. First mover advantage may prove decisive in It simply means we must work even harder to Expand online and digital activities Our content offering took a major stride these high-growth markets and we’ve been attract their attention and hold their interest. Build on key franchise performance forward with the arrival of Marc Buhaj as achieving that – in Bulgaria for instance we Although it’s still young, Jetix is widely Senior Vice-President in charge of programming. have added a local language track to our recognised as one of Europe’s leading kids Marc has immense experience in this field. channel and we are now the only dedicated entertainment companies. This is no accident; Under his guiding influence we have been kids’ channel broadcasting in Bulgarian.
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