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.



Source: Jetix Europe Ltd

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: jenny.burbage@jetix.net E Mail: jo.hadfield@jetix.net Investors: Isabel Vilela Tel: + 44(0)20-8-222-5813 E mail: isabel.vilela@jetix.net


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