Jetixeurope Annual Report 2005 en

Jetix Europe N.V.
Jetix Europe N.V.

Annual Review and Financial Statements 2005

Jetix Europe N.V.
Annual Review and
Financial Statements 2005
Jetix Europe N.V.

For more information write to:
Bergweg 50, 1217 SC
Hilversum
The Netherlands
or contact:
Investor Relations
Jetix Europe Limited
3 Queen Caroline Street
Hammersmith
London W6 9PE
Tel: +44 20 8222 3600

Fax: +44 20 8222 5906
www.jetixeurope.com
group at a
glance
Our Business Lines
Channels & Online
>> Owns and operates fully localised children’s channels
Broadcasts in 58 countries, reaching more than 41.8 million

homes in 18 languages
contents
1 Introduction Localised websites in 17 languages
2 Our Highlights
4 Our Content
6
8
Our Future
Our Alliance Annual Report Copyright Notices
Programme Distribution
10
12
14
Our History
Chief Executive Officer’s Review
Operating and Financial Review
© (2005) Jetix Europe. JETIX name and logo © and ™ Disney Enterprises, Inc. ASTROBOY © 2004 Tezuka Productions Co., Ltd., Sony Pictures
Entertainment (Japan) Inc. and Dentsu Inc. A.T.O.M. ALPHA TEENS ON MACHINES © 2005 Jetix Europe/SIP Animation. FUNKY COPS © 2005
AnteFilms Production/M6 Metropole Television TPS Cinema/Greenlight Media. GALACTIK FOOTBALL ™ Alphanim © 2006 Alphanim, France 2.
>> Distributes programmes to terrestrial broadcasters and third
party cable and satellite channels
18 Channels and Online All rights reserved. GET ED © Disney Enterprises, Inc. HOTNEWS.NL © & ™ Jetix Europe Channels B.V. OBAN STAR-RACERS © Sav! The World
22 Programme Distribution Productions/Jetix Europe 2005. All rights reserved. POWER RANGERS (all series) TM & © BVS Entertainment Inc. and BVS International N.V. Over 90 clients in 44 markets
26 Consumer Products All rights reserved. PUCCA © VOOZ. All rights reserved. SONIC X © SONIC Project. All rights reserved. SPIDER-MAN © 2005 New World
30 Management Board Animation. Underlying property TM & © Marvel Characters, Inc. All rights reserved. SUPER ROBOT MONKEY TEAM HYPER FORCE GO! © 2005
32
33
35
Supervisory Board
Corporate Governance
Accounts
Disney Enterprises, Inc. TOTALLY SPIES! © 2005 MARATHON – MYSTERY ANIMATION INC. TOTALLY SPIES! and all related logos, names and
distinctive likeness are the exclusive property of MARATHON ANIMATION. All rights reserved. MW © 2006 Really Big Bug Movies Ltd.
W.I.T.C.H © SIP Animation 2005.
Consumer Products
>> Licenses merchandising rights to the Jetix library and third
party properties throughout Europe and the Middle East
Designed and produced by MAGEE
Printed by the colourhouse
Local offices in 7 markets; represented in 37 countries
group at a
glance
Our Business Lines
Channels & Online

contents
2 Our Highlights
4 Our Content
6
8
Our Future
10
12
14
Our History
32
33
35
Supervisory Board
Accounts
Consumer Products
Welcome to Jetix Europe N.V.’s 2005
Annual Report.
We are a leading kids entertainment

company whose mission is to deliver
the best creative content to our
audiences across Europe and the
Middle East, through television,
consumer products and digital
media channels.
Our majority shareholder, Disney,

has launched the Jetix brand in Asia
and the Americas. Together we have
created Jetix as a global kids brand,
bringing our unique combination of
action, adventure and cheeky humour
to kids across the globe. Collectively
the Jetix brand reaches 275 million
households worldwide.
1
our
highlights Continued
growth
155.5(4) 187.8 97.4

165.3 75.2(4) 85.9
129.3(3)
146.8 74.8
129.3(2)
120.1(1) 45.1(3) 58.0(2)
40.3(1)
01 02 03 04 05 01 02 03 04 05
Revenues (6) Subscription Revenues (6), (7)

[$ million] [$ million]
58.9(4) 58.0(11) 47.1

(3) 65.5
53.9
56.0 41.4
(1) 53.3(2) 51.0(10)
50.6
26.3(4)
29.4
13.5(3) 21.9(2)
12.3(1)
01 02 03 04 05 01 02 03 04 05
EBITDA (5) Advertising Revenues (6), (8)

41.8
32.3(4) 38.3
30.9 30.9
34.8
20.2(4) 24.9(3) 31.4(2)
24.7(1)
8.9(2) 10.4
(4.4)(3)
(9.9)(1)
01 02 03 04 05 01 02 03 04 05
Operating Cash Flow Households reached by channels

[$ million] [million]
2
know?
ou
Did y
se
ucca a Chine
P ughte
r o f
Pucca
a
The d ant owner, r one
r e
restau sed with h
es
is obs e, Garu. n
r u e l ov ’ s o b sessio
t ly Gar
u
ter an
d
tunate ja mas
Unfor come a nin ame.
e n
is to b his family’s a glob
al
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rest ped
has develo s franchise.
Pucca er product
m
consu
17.1(3)
19.8
16.2(1) 13.6 (11)
3.8
5.8 (10)
(28.9)(2)
(29.8)(4)
01 02(9) 03 04 05
Net income
[$ million]
(1)
Unaudited results for the year ended May 31, 2001.
(2)
Unaudited results for the year ended June 30, 2002.
(3)
Results for the 13-months ended June 30, 2001.
(4)
Results for the 15-months ended September 30, 2002.
(5)
Consistent with prior years, EBITDA is stated before programme amortisation,
impairment and depreciation. EBITDA less depreciation, amortisation and impairment
is equivalent to operating income.
(6)
Excluding our share of non-consolidated joint ventures.
(7)
Including other small non-advertising channel revenues.
(8)
Including online advertising revenues.
(9)
Before cumulative effect of change in accounting principle.
(10)
Results for the year ended September 30, 2004, as reported (i.e. including non-recurring
charge discussed below).
(11)
To enhance comparability, the Company has also provided operating results on a pro forma
basis for the year ending September 30, 2004, 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.
3
our
content
check it out
A.T.O.M.
ALPHA TEENS ON MACHINES
Set in the bustling
metropolis of Landmark
City, A.T.O.M. ALPHA TEENS
ON MACHINES follows five
extreme sport-loving teens
whose rebellious spirit and
physical skills are called upon
to push the limits of high-tech
new inventions. But this ‘dream
job’ often crosses paths with
fiendish crimelords, resulting in
high-octane and high-spirited
adventures as the Alpha Teens
become unlikely saviours of the city.
4
Great quality content
is at the heart of
the company
5
our
future
In the futuristic world of Progress

City, Ed and his team of street-
smart couriers go anywhere,
anytime, and do whatever it
takes to thwart the power-mad
plans of Mr Bedlam. Get Ed is the
second global Jetix co-production
created by the Disney TV
Animation studio, and will be the
first 3D CGI series from Jetix.
This epic series chronicles the

Great Race of Oban, an intergalactic
racing competition that takes place
every 10,000 years to determine
the winner of a mysterious ultimate
prize and the balance of power
within the Galaxy. Oban Star-Racers
incorporates a significant amount
of 3D CGI, which gives the racing
and action sequences a visual
impact rarely seen on TV.
6
Future success
is built on great
new content The latest incarnation of Power Rangers
launched in the Autumn 2005. The 13th
season is set in the Space Patrol Delta
Academy, where humans and
aliens train to become the
newest generation of
Power Rangers. The
series chronicles the
adventures of the young
cadets as they hone
their extraordinary
genetic powers and
train to become the
best of the best.
Following the huge success of Pucca

as a consumer products property, we
have commissioned a full TV series to
be produced by Canada’s Studio B.
The new series retains the visual style
of the previous shorts, whilst adding
to Pucca’s cast and world, creating
additional licensing opportunities.
This will be the first Flash animated
series for Jetix Europe.
Galactik Football follows the

adventures of the Snow Kids,
a football team from the planet
An innovative new entry into the realm of Akillian as they immerse themselves
sophisticated fantasy drama for kids 8-14, in the emotion and adventure of
our new mystery series combines live action competing for the prestigious
with stunning CGI creature animation. ‘Galactik Football Cup’. Our heroes
A contemporary setting and the teen soap master the art of using Flux, a
appeal of a pin-up cast of heroes are placed powerful form of magic which
against an extraordinary backdrop of giant raises the stakes and sees the team
monsters, epic threats and tangled webs face both triumph and sabotage.
of mystery, in true Jetix fashion. The series
represents our commitment to innovative
live action for our older audience,
encompassing all our key brand values.
7
our Jetix Europe is part
alliance of the Jetix global

brand alliance
Jetix Europe is a partner in the Jetix global brand alliance, established in

2004 with our majority shareholder, The Walt Disney Company.
The partners in the alliance are working together to build Jetix into a
global brand targeting kids aged 6 -14, with a particular focus on action
adventure, combined with cheeky humour.
This year the Jetix brand has been rolled out across the world:
• Jetix Europe has renamed all of its activities
• Disney in the U.S. is broadcasting Jetix branded programme blocks
• In Asia, Buena Vista International Television (BVITV) has sold Jetix
branded programme blocks to a number of broadcasters, and Disney is
also carrying Jetix branded blocks on parts of its own channel network
• Disney in Latin America has renamed all of its Fox Kids
operations as Jetix
Jetix is becoming a truly global phenomenon 1

>>> Reaching over 275 million households
>>> In 80 countries
>>> Broadcasting in 25 languages
1
Statistics refer to the Jetix alliance around the world, Jetix Europe only
owns the operations in Europe and the Middle East.
8
show
cool Monk
ey
R o b ot ce Go!
r r
Supe Hyperf-sotyle action
Team ristic anime forces of
tu e f
is a fu that pits th t a band o
, ns
series e evil agai t Monkey
a t bo
ultim loured Ro iro –
co h iro
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r n g i
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u e
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i s C
and h huggazoom g and his
,S in
home Skeleton K
i l
the ev minions.
er
monst
26%
Public shareholders
74%
ABC Family Worldwide
(A subsidiary of Disney)
Jetix Europe
ownership
structure
9
our
history
e rty
pro p
hot s
nger ue
wer Ra ed as a tr
Po estab
ly
lish
perty
.
pro
is firm en kids’ a
TV
nese t
g r e J a p
ever 0’s
a 197 estern de
bu
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Inspir t made its 13th serie
,i s
series . Now in it episodes, s
3 0 tion
in 199 re over 45 G enera est,
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and P iles the be diences to rs
comp g new au wer Range
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e
for th
’99
Initial Public Offering
10
’00 ’05
Channels launched in Italy, Germany, Hungary, All operations renamed as Jetix
Turkey and Middle East
First year of new management team
Fox Kids is now the only children’s entertainment
New channel launched in Italy – GXT
company with a channel in every major
European market New programming delivered included W.I.T.C.H.,
A.T.O.M. Alpha Teens on Machines and Super Robot
Fox Kids Europe reaches profitability
Monkey Team Hyperforce Go!
Channels now reach 20 million households in
Programme distribution division began its recovery
38 countries
with a return to profits growth
Consumer products restructuring led to major
development in Home Entertainment business
Jetix Europe reaches 41.8 million households in
’01 58 countries in 18 languages via 15 channel feeds
Channels launched in Israel and Greece
Hungarian channel extended to Czech Republic

and Slovakia
Disney acquires 100% of Fox Family Worldwide,

’04
Fox Kids creates Jetix, a global programming
thereby becoming Fox Kids Europe’s majority alliance with Disney
shareholder
Jetix relocates its UK and French offices to
Channels now reach 24.9 million households in Disney’s local premises
54 countries via 11 channel feeds in 16 languages
First two co-productions with Disney underway:
W.I.T.C.H. and Super Robot Monkey Team
Hyperforce Go!
Channels now reach 38.3 million households in
’02
58 countries in 17 languages via 14 channel feeds
Buena Vista International Television appointed to

service Fox Kids’ programme distribution business
Fox Kids Europe now reaches 32.3 million

households in 17 languages via 12 channel feeds
’03
10 years of Power Rangers success! Power Rangers
ranked as best selling action figure brand of all
time in the US
Disney Consumer Products appointed to represent

Power Rangers; Video distribution agreement
concluded with Buena Vista Home Entertainment
Channels now reach 34.8 million households in

57 countries in 17 languages via 12 channel feeds
11
chief executive
officer’s review
“I am delighted to be announcing
another strong set of results from
Jetix Europe. This has been a year
of change for the Company and I am
pleased that through this period of
transition we have succeeded in
delivering on our financial targets as
well as laying the foundations for
continued growth into the future.”
12
Last year we announced that we were creating a new The improved quality of our programming can also be seen
programming brand with our parent, The Walt Disney Company in the first signs of recovery in our programme distribution
(Disney), centred on our new name and brand – Jetix. This year division, where we work with Disney’s Buena Vista International
has seen the completion in Europe and the Middle East of the Television, Europe’s leading kids programme distribution
first phase of this alliance, with the transition to our new name company. Despite receiving fewer new episodes this year we
across all of our operations: television, on-line, new digital managed to grow our profits, and I am confident that as our
media and our ancillary activities. We are excited to see that programme pipeline continues to improve we will see further
Disney has also launched the Jetix brand in the U.S., Latin growth in this division.
America and Asia, making us a key player in the development
of a truly global kids’ phenomenon. Our consumer products division built on last year’s success
with another excellent year. Power Rangers continues to exceed
It is also good to see that our strategy of introducing the new our expectations, supported by the strength of Disney Consumer
brand gradually, through Jetix branded blocks which preceded Products, and our home entertainment business has delivered
the full channel renaming, has worked well. The new brand has outstanding results following the internal reorganisation which
become firmly established across Europe and the Middle East focused resources on this area.
with our audiences, commercial partners, advertisers and
distributors. During the year we have also pushed through changes in our
corporate management structure. I believe that all of this
As I highlighted when I became CEO, content is at the heart year’s changes, and the new focused management team, has
of our company. This year we have significantly improved given the company a new momentum. We are well positioned
our production pipeline, with a focus on developing fewer, for the next stage in our development and I remain confident
higher quality properties. Our content strategy is centred that we will continue to rise to the many challenges and
on ownership, either in partnership with our parent company opportunities of the fast changing media world in which
or the best independent producers around the world, thus we operate.
enabling our team to be heavily involved in the creative direction
of each property early on in its development. This also more I would also like to take this opportunity to publicly thank
effectively sets us up to participate in the financial rewards of each and every member of the team. You have all risen to the
hit franchises. challenge this year, and without you, these results would not
be possible – Thank You.
This has been the first full year of our programme alliance with
Disney, and during the period we have taken delivery of the first
shows which were developed specifically for the Jetix brand.
The uniquely named Super Robot Monkey Team Hyperforce Go!,
and the soon to be aired Get Ed were produced by Disney’s
Television Animation division. It is also important to note that
the content alliance with Disney is a two way process. The Jetix
Europe led co-production of W.I.T.C.H. with SIP Animation (SIP) Paul Taylor
in France has aired across our channels in Europe as well as the Chief Executive Officer
Disney owned Jetix networks and programme blocks in North December 2005
America, Latin America and Asia. In addition, since the end of
the fiscal year, we have sold two of our flagship co-productions
to Jetix in the U.S., A.T.O.M. (Alpha Teens On Machines) and
Oban Star-Racers (co-production with Sav! the World). The
success of these shows has already allowed us to commission
second seasons of Super Robot Monkey Team Hyperforce Go!,
W.I.T.C.H. and A.T.O.M. (Alpha Teens On Machines).
13
operating and
financial review
“I am pleased that we achieved strong

earnings growth in a year of significant
transition, and that operating cash flow
remained strong despite increased
programming investment.”
Dene Stratton
Chief Financial Officer
December 2005
14
Revenues Costs and Expenses
Revenues increased by 14% to $187.8 million against the Costs and expenses increased by 7% to $122.4 million. Excluding
prior year. Channels and online grew revenues by 14% to the non-recurring relocation expenses in the prior year, costs
$144.5 million, with subscription revenues increasing by 13% rose by 14% from $107.3 million. The primary reasons for the
to $94.0 million and advertising revenues increasing by 14% increase in costs included a provision for indirect taxes, the
to $47.1 million. Other channel and online revenues, mainly weakening of the dollar against the euro and the pound, and
live events, research and interactive, were up 13% at $3.4 million. increased costs in our consumer products division. Consumer
The primary drivers of growth in channel and online revenues products cost increases were driven by an increased agency fee
were increased distribution of our channels, strong advertising on one of our properties and an accrual of third party costs
growth, notably in Italy, CEE and Poland, and the weakening of primarily attributable to prior periods, which we announced
the dollar against the euro and the pound. in our interim statement.
Programme distribution revenues, serviced by Buena Vista Other cost increases were attributable to the upgrading of our
International Television, increased by 1% to $24.9 million. broadcasting facilities, a provision for settlement of pending
As reported in our half-year results, revenues were weighted legal claims and marketing spend associated with the renaming
towards the second half of the year, with 65% of revenues in of our channel and online businesses, partly offset by reduced
this period. This is due to the timing of programme deliveries programme distribution costs due to the lower volume of new
during the period rather than any seasonal factor. Programme episodes delivered.
distribution revenues have increased slightly despite a
substantial fall in the volume of programming being delivered.
EBITDA1
This has been driven by the strong performance of our new
EBITDA increased by 28% to $65.5 million. This represents
programming, notably Power Rangers and W.I.T.C.H., as well as
an increase of 13% on prior year adjusted for non-recurring
strong sales of older titles, particularly Spiderman.
relocation costs. Channel and online EBITDA increased by 37%
Our consumer products revenues grew strongly, increasing by (21% after adjusting for non-recurring costs) to $57.6 million.
38% to $18.4 million. This was driven by a strong performance This was driven by subscription and advertising revenue growth
from Power Rangers, represented by Disney Consumer Products, being only partially offset by cost increases primarily due to
as well as significant growth in our home entertainment foreign exchange movements, increased technical and
division, both in-house and the properties distributed by Buena increased marketing costs. Programme distribution increased
Vista Home Entertainment. EBITDA by 10% (9% after adjusting for non-recurring costs) to
$17.1 million as costs were reduced due to the lower volume
of new programming delivered, and consumer products
increased EBITDA by 23% (15% after adjusting for non-recurring
costs) to $6.3 million, with strong revenue growth partially
offset by increased costs from the increased agency fees and
the accrual described above. The change in shared costs not
allocated to segments was primarily the result of a provision
for indirect taxes.
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.
15
operating and
financial review continued
Revenue by line of business Revenue by territory
Consumer
Programme
Products
Distribution Other
9.8%
13.2% 13.4%
UK
29.6% Spain
5.1%
Channels:
Advertising
25.1% Germany
8.2%
CEE
8.3%
Italy
Channels: 12.9%
Subscription & Other France
51.9% 11.2%
Benelux
11.3%
Amortisation, Impairment and Depreciation Financial Income

Programme amortisation and impairment fell by 3% to Financial income increased by 142% to $2.4 million due to
$41.7 million. This is largely due to a significantly larger higher cash balances during the period compared with prior
impairment charge in the prior period versus the current year, year, and higher interest rates.
offset by an increase in amortisation from increased revenue
in our channels and online and consumer products divisions.
Income Before Tax and Minority Interest
Depreciation and impairment of property and equipment fell by Income before tax and minority interest increased by
48% to $1.4 million. This is due primarily to the asset write-off 243% from $7.6 million to $26.1 million. This is primarily
in the prior year, associated with our relocation. There has also due to increased EBITDA discussed above, as well as reduced
been a slight increase in fully depreciated assets, which has amortisation and depreciation and increased financial income.
reduced our overall depreciation rate.
16
Taxation REPORTING CURRENCY
The effective tax rate was 23% compared with 26% in the prior Due to the growing usage of euros since their introduction,
fiscal year. The income tax charge for the year comprised and the growth in our channel and online business, we expect
income, withholding and capital taxes payable amounting the euro to be the most significant currency in which our
to $3.0 million, and a deferred tax charge of $3.0 million. revenues and costs will be originated for the foreseeable
future. Therefore for the fiscal year ending September 30, 2006
we will be changing our reporting currency to the euro from
Minority Interest
the dollar.
Minority interest fell by $0.6 million to an expense of $0.4 million
as our Polish channel operation moved into profitability.
CHANGE TO IFRS
The company’s primary financial reporting is currently on a
Earnings per Share
U.S. GAAP basis. Companies listed on an E.U. Stock Exchange
Basic earnings per share increased by 234% to 23.7 cents
are required to prepare consolidated financial statements in
per share from 7.1 cents per share. Diluted earnings per share
accordance with International Financial Reporting Standards
increased by 241% to 23.5 cents per share from 6.9 cents per
(IFRS) for accounting periods commencing on or after
share. These gains were due to the increase in income referred
January 1, 2005. Jetix Europe will therefore be preparing
to above, with no significant change in the weighted average
financial statements under IFRS for our fiscal year ending
number of shares outstanding.
September 30, 2006.
Cash Flow Preparing for the transition, we have drawn up plans for
implementation, made a survey of differences between U.S. GAAP
Operating cash flow remained at $30.9 million. Strong
and IFRS, prepared a preliminary October 1, 2004 opening
growth in operating income was offset by the combination
balance sheet and started the process of implementing
of increased investment in content and the non-recurrence
necessary changes in systems and routines.
of a working capital benefit associated with the office
relocation in the prior year. Significant differences between current U.S. GAAP and IFRS
reporting may include, but are not limited to, programme
Cash and cash equivalents increased by $38.3 million. This
amortisation and impairment, proportional consolidation
resulted primarily from operating cash flow and the exercise
of non-consolidated joint ventures, expensing of stock based
of employee stock options.
employee compensation (also required under U.S. GAAP
for fiscal 2006) and deferred tax.
17
Channels
and online
18
15 channel
feeds reaching
58 countries
broadcasting in
18 languages
41.8 million
households
reached
17 localised
websites plus
digital and
interactive
services
19
Channels
and online continued
144.5 57.6
47.7(5)
101.6(4) 127.3
35.6(4) 42.1(6)
104.1 41.2
58.6(2) 79.9(3)
28.4(3)
52.6(1)
7.0(2)
5.6(1)
2001 2002 2003 2004 2005 2001 2002 2003 2004 2005
Revenue (7) EBITDA (8)

“During the year the key focus for the channels and online division
has been the renaming to Jetix.”
The renaming began in the prior financial year with our French The channels have continued to expand their distribution
channel in August, and since then the rest of our feeds have during the year and at the year end we reached 41.8 million
changed to Jetix. The majority transitioned in January, with households, up 3.5 million households. This has maintained our
our German channel being the last to change in June 2005. position as one of the leading kids’ television channels across
We supported the renaming with a wide range of marketing Europe and as at September 30, 2005, we reached 58 countries,
activities, from special launches to Jetix branded touring through 15 channel feeds broadcasting in 18 languages.
events, all supported by major on-air and online campaigns.
During the year we have renewed key deals with pay-tv
The new brand has become firmly established with platforms, securing distribution of our channels into the
our audiences, and has also built a strong presence with future. Key deals renewed were with Sky Italia in Italy, NTL
our commercial partners. The transition highlighted the and Telewest in the U.K., Sogecable in Spain and a number
successful overall strategy we pursued, with the initial launch of deals in Eastern Europe.
of branded blocks to introduce our audiences to the new
name, followed by the rolling out of the change across
our whole channel network.
(1) (6)
Unaudited results for the year ended May 31, 2001. Results for the year ended September 30, 2004, as reported.
(2) (7)
Results for the 13-months ended June 30, 2001. Excluding our share of non-consolidated joint ventures.
(3) (8)
Unaudited results for the year ended June 30, 2002. Consistent with prior years, EBITDA is stated before programme amortisation,
(4)
Results for the 15-months ended September 30, 2002. impairment and depreciation. EBITDA less depreciation, amortisation and impairment
(5)
Pro forma stated after excluding non-recurring relocation charges of $5.6 million.
20
highlights
>>> All of the channels have been >>> Strong advertising growth in
renamed as Jetix most markets
>>> Channel subscribers increase by >>> Launch of new channel franchise

3.5 million to 41.8 million households in Italy – GXT
>>> Channels broadcasting in 58 countries >>> New media trials underway on

via 15 channel feeds in 18 languages mobile and ADSL VoD
>>> Key channel distribution deals renewed
Advertising revenue has grown at more than 15% in all of our During the period the market for digital media has continued
markets except the U.K. and the Netherlands. On two of our to develop rapidly. We are working with a number of partners
channels, Central and Eastern Europe and Poland, advertising to trial new services and to ensure we are present wherever
more than doubled, whilst in the U.K. and the Netherlands new opportunities are emerging. In France we have two deals
advertising was broadly in line with last year. In the in place to distribute our channel over mobile phones. Trials
Netherlands we have defended our market leading position with Orange and SFR began in June and early performance has
against a strong new market entrant, and in the U.K., our been positive. In Germany we secured carriage within T-Online’s
most competitive market, we maintained our position. video on demand ADSL service which distributes some of our
most popular library shows, and in the UK our channel is being
In May 2005 we launched a new channel brand in Italy, GXT. carried on the Homechoice ADSL service.
GXT targets an older “teen” audience with a mix of irreverent
humour and edgy programming. To date, the channel has
performed strongly and has significantly improved our
demographic reach, opening up the opportunity to develop
new advertising clients. We are hopeful that this format
will have significant potential in the future.
21
programme
distribution
22
Serviced by
Disney’s
Buena Vista
Television
International
Over90
clients in
44 markets
Library
of over
6,600
episodes 1
1
Half hour equivalents, as at September 30, 2005.
23
programme
distribution continued
61.4(2) 51.2(2)
59.0(1) 49.2(1)
(4)
43.2
28.8 (3),(4)
40.1(3)
31.4
15.7(5)
24.7 24.9 20.4
15.5(6) 17.1
2001 2002 2003 2004 2005 2001 2002 2003 2004 2005
Revenue EBITDA (7)

“Programme distribution revenue has increased for the first time in

recent years.”
We achieved this despite a significant reduction in the number major European markets and was the most popular programme
of episodes delivered compared with the prior year. There has with boys in all markets for its timeslot. Our new shows also sold
been a concerted focus on the quality of programmes that we well with W.I.T.C.H. selling in 17 countries and Sonic X selling in
have been producing, and we have begun implementing our 19 countries. In the four major markets where W.I.T.C.H. aired it
long-term strategy of moving from acquired programming to was number one or two in its timeslot amongst kids and Sonic X
co-productions, in which we have significant ownership and was number one for boys in its timeslot in the three major
creative influence. The improvement is also due to the global markets in which it aired.
scale and industry relationships which Buena Vista International
Television brings to servicing our distribution operation. During the period we have sold a new branded block and a
number of notable volume and package deals 9. A new branded
The quality of our programming is highlighted by the on-air block deal has been signed with Polsat in Poland, which
performance of a number of our key franchises during the year, complements the blocks we already have in Germany, Russia,
both old and new. Power Rangers maintained its market Czech Republic and a number of other emerging markets. New
leadership position, airing in all five of the major European volume deals have been signed in the U.K., Ireland and Belgium;
markets and leading its timeslot with the highest kids ratings in and major package deals have been signed in Italy, Greece,
four of them8. On the back of the most recent movie, Spiderman Turkey and Finland amongst others.
returned as one of our best selling properties, airing in all five
(1) (5)
Unaudited results for the year ended May 31, 2001. Pro forma stated after excluding non-recurring relocation charges of $0.2 million.
(2) (6)
Results for the 13-month period ended June 30, 2001. Results for the year ended September 30, 2004, as reported.
(3) (7)
Unaudited results for the year ended June 30, 2002. Consistent with prior years, EBITDA is stated before programme amortisation,
(4)
Results for the 15 months ended September 30, 2002. impairment and depreciation. EBITDA less depreciation, amortisation and impairment
24
highlights
>>> Revenue marginally up, reversing >>> 137 episodes of new programming
recent trend delivered
>>> Strong on-air performance of >>> Significant improvement in

key shows programme pipeline with 244
episodes in production, up 102
>>> New branded block, volume and from September 30, 2004
package deals
We have taken delivery of 137 new episodes during the period. crimes whilst toiling at a futuristic messenger service. Pucca has
This included the initial season of our first co-production with developed from our strong consumer products franchise, and
Disney’s Television Animation unit in the U.S., Super Robot is a kiss-chase meets kung-fu comedy following the exploits of
Monkey Team Hyperforce Go!, as well as co-productions with Pucca, the daughter of a Chinese restaurant owner, and Garu,
other studios. This year we have received the first seasons of a loyal ninja student. Our new “mystery” live action series will
W.I.T.C.H. and A.T.O.M. (Alpha Teens on Machines) from SIP in launch next year at MIP TV and is a hybrid between live action
France, and acquired new series of programming such as Sonic X. and CGI production techniques.
We have also received the latest season of our flagship property,
Power Rangers. Also in production at the period end was Oban Star-Racers, our
26 episode epic co-production with Sav! the World, Super RTL
The number of episodes we have in production has significantly and France 3. This was recently launched at the MIPCOM TV
increased to 244, up 102 episodes from September 30, 2004. buying market and has generated significant early interest.
New productions entered into during the period include both
new seasons of our successful properties, Power Rangers, Super
Robot Monkey Team Hyperforce Go!, W.I.T.C.H. and A.T.O.M.
(Alpha Teens on Machines), as well as new original properties
such as Get Ed, Pucca and a new “mystery” live action
production. Get Ed is a new coproduction with Disney’s TVA in
the U.S., and follows the adventures of Ed, a boy genetically
created from an ancient artefact, who works as a surreptitious
cybersleuth, foiling identity thefts and other information based
8
Source: B.A.R.B. in UK; Mediametrie in France, Spain and Germany; AGB Italia – Italy;
all sources cover the key kid demographic in all television households; time period
covers when the programmes aired between October 1, 2004 and September 30, 2005.
9
A volume deal is when a broadcaster agrees to buy a defined volume of programming
over a number of years with some programmes undefined, versus a package deal
when one or more specific titles are acquired.
25
consumer
products
pan-
European
licensing
agency
Local
offices in
7 markets
represented
in37
countries
26
27
consumer
products continued
18.4 5.5(5) 6.3

5.2(2) (4)
4.9
5.2(6)
10.7(4) 13.3 4.6(1) 4.4(3)
9.3(2) 4.0
11.3
(3)
9.3
8.5(1)
2001 2002 2003 2004 2005 2001 2002 2003 2004 2005
Revenue EBITDA (7)

“Consumer products has performed well, driven by strong sales from

Power Rangers and home entertainment.”
We exploit our consumer products properties through a dual on developing new products outside of the core areas, and this
strategy. We have an in-house division, Jetix Consumer Products has led to strong growth in a number of smaller categories,
(JCP) which represents almost all of our properties, and we including youth electronics and communications, sports toys
have leveraged the global reach of Disney through Disney and ride-ons. Power Rangers has also become firmly established
Consumer Products (DCP) to distribute our global hit property, as a core franchise within the Disney stores.
Power Rangers, and through Buena Vista Home Entertainment
(BVHE) to distribute some of our biggest selling home Within the properties represented by JCP, Pucca and Sonic X
entertainment titles. have been particularly strong. Pucca has developed into a
uniquely distinctive brand with strong categories including
Power Rangers has again grown strongly with our royalty fashion and apparel, as well as stationery and accessories.
revenue from DCP up more than 40%. Retail sales have Following its success as a consumer products property, Jetix is
increased in all of the major European markets, and more developing Pucca into a TV series. Together with securing the
than doubled in Germany and Italy 8. Action figures remain Pucca TV rights from Vooz, we have extended our consumer
the largest category, and despite strong competition from products licence period for a further 20 years, ensuring that
Star Wars, Power Rangers ranked in the top five properties we benefit from the value created by the TV exposure. The
in four of the five major markets. There has also been a focus terms of our agency representation were also improved.
(1) (6)
Unaudited results for the year ended May 31, 2001. Results for the year ended September 30, 2004, as reported.
(2) (7)
Results for the 13-month period ended June 30, 2001. Consistent with prior years, EBITDA is stated before programme amortisation,
(3)
Unaudited results for the year ended June 30, 2002. impairment and depreciation. EBITDA less depreciation, amortisation and impairment
(4)
Results for the 15-month period ended September 30, 2002. (8)
Source: NPD Group / Eurotoys / EPoS Tracking Service
(5)
Pro forma stated after excluding non-recurring relocation charges of $0.3 million.
28
highlights
>>> Strong revenue and profit growth >>> Sonic X developing well across
the region
>>> Power Rangers, represented by
Disney Consumer Products, >>> Home entertainment significantly
performing well increased sales as new management
structure has improved focus
>>> Pucca licensing agency agreement
improved and extended on the back
of strong performance
Sonic X, our recent major acquisition, has been licensed across Within JCP, a dedicated unit has been set up to focus on
a wide range of territories. The master toy license is developing building our home entertainment activities. This new division
well with product launched across the region, and the has had an excellent start, more than doubling revenues year
character has been signed for a broad range of merchandise. on year. This success has been driven by both new and library
On the back of this success we have increased the range of titles, Sonic X has been licensed in 24 countries, including four
rights we are representing. of the five major European markets, and there has been a
significant increase in multi-property deals where a number
The Jetix brand has also demonstrated its potential and strong of our library titles are licensed together as packages.
early recognition by establishing itself as one of our leading
licensing properties. Jetix branded items include magazine We have continued to expand the range of properties we
publishing, CD compilations, supermarket promotions and the represent and during the period have taken on the rights for
use of the Jetix logo on a range of items from cycle helmets our new “mystery” live action series, and we also control the
and bean bags through to ice cream. consumer product rights within our region for our major
co-production Oban Star-Racers.
The performance of our home entertainment business has been
a notable highlight, with a strong performance from both our
in-house operation and the titles distributed by BVHE (Power
Rangers and a number of our Marvel titles). Power Rangers has
maintained its perennial popularity, and the Marvel titles have
increased sales, leveraging the interest generated by the
release of the Spiderman and Fantastic Four theatrical movies.
29
Management
board
PAUL TAYLOR Dene Stratton

Chief Executive Officer Chief Financial Officer
Paul Taylor was formally appointed Chief Executive Dene Stratton was appointed Chief Financial Officer
Officer in November 2004 having served as Interim and a member of the Management Board in January
CEO since July 2004. In this role, he is responsible for 2005. He is responsible for all aspects of finance,
leading the continued growth of all Jetix Europe’s administration, business development and investor
businesses. Mr. Taylor spent 5 years at BSkyB and was relations. Prior to joining Jetix Europe he worked at
General Manager of Movies & Pay-Per-View when he Disney, as Senior Vice President, Planning & Control
left to join Jetix Europe. Prior to that he served as at ABC Inc., having held a number of roles within
Director of Advertising Sales at UK Gold and UK Disney since 1990. He began his career in public
Living. Mr. Taylor also worked at Channel Four from accounting with Ernst & Young in Los Angeles.
1992 to 1996, and held posts at various advertising
agencies including JWT, McCanns, Lowe Howard-Spink
and Geers Gross.
30
Olivier Spiner OLIVER FRYER
Executive Vice President of International Affairs General Counsel
Olivier Spiner was appointed as a member of the Oliver Fryer was appointed as a member of the
Management Board and Executive Vice President of Management Board in September 2003. In his role,
International Affairs in November 1999, and is he is responsible for all of Jetix Europe’s contractual,
responsible for Jetix Europe’s corporate activities. legal and business affairs issues. He previously served
Prior to joining Jetix Europe he served as Deputy as Director of Legal and Business Affairs for Jetix
General Manager of Saban International Paris from Europe. Before joining the company in June 2001,
1996 and before this, from 1982, he held the Mr. Fryer worked for The Simkins Partnership and
positions of Deputy General Manager and Chief for Zenith Entertainment plc, where for several years
Financial Officer at Créativité and Développement. he was Director of Legal and Business Affairs.
31
supervisory
board
Thomas Staggs Etienne de Villiers
Chairman of the Supervisory Board Etienne de Villiers was appointed as a member of the Supervisory
Tom Staggs was appointed as Chairman of the Supervisory Board in Board in January 2005. Mr. de Villiers is founder and senior partner
November 2001. He is currently Senior Executive Vice President and of Englefield Capital LLP, a UK based private equity fund focused on
Chief Financial Officer of the The Walt Disney Company and a member mid-market development capital deals. He is a non-executive Director
of Disney’s executive management committee, with responsibility for for Pi Capital and Video Networks, as well as non-executive Chairman
the company’s worldwide finance organisation, controller functions, of BBC Commercial Holdings Limited. He is also the newly appointed
acquisitions, investor relations, treasury activities, information systems, Executive Chairman and President of the ATP, the governing body of
real estate and taxes. Mr. Staggs joined Disney in 1990 as Manager of men’s professional tennis. Until May 2000, Mr. de Villiers served as
Strategic Planning. In 1995, he became Vice President of Planning and President and MD of Walt Disney International Europe, Middle East
Development and in 1998, Mr. Staggs became Executive Vice President and Africa and President of Walt Disney International where he was
and Chief Financial Officer. responsible for Disney’s production, broadcasting and distribution
activities outside the USA.
Andy Bird
Andy Bird was appointed as a member of the Supervisory Board in Peter Seymour
January 2005. As president of Walt Disney International, Mr. Bird works Peter Seymour was appointed as a member of the Supervisory Board in
with all of Disney’s business unit leaders around the world, coordinating September 2005. He is currently Senior Vice President of Strategy for
and overseeing growth opportunities for Disney outside the United Disney Media Networks where he oversees strategy development for all
States. He is responsible for targeting new businesses, growing and of Disney broadcasting and cable programming activities. Mr. Seymour
increasing penetration of existing businesses, and leading the joined Disney in 1996 as Manager of Strategic Planning. In 2001 he
development of business and operations in emerging markets. Prior became Senior Vice President of Strategic Planning responsible for
to joining Disney, Mr. Bird spent nearly a decade with Time Warner. Disney’s overall corporate development activities as well as strategy
and business development for the company’s technology and
broadcasting initiatives.
Supervisory Board changes

During the year Philippe Laco, Claus Holst-Gydesen, Peter Murphy and Antoine Jeancourt-Galignani resigned from the Supervisory Board, and Andy
Bird, Etienne de Villiers and Peter Seymour joined the Supervisory Board. The Company intends the Supervisory Board to have five members, two
of which will be independent from Disney. Therefore, following the end of the period under review the company has announced that it intends
to appoint, subject to shareholder approval, Wolf-Dieter Gramatke as a non-Disney director, while Tom Staggs will be replaced by Brian Spaulding.
An EGM to approve these changes has been called on January 10, 2006. Andy Bird will be taking over as Chairman.
Wolf-Dieter Gramatke has been a freelance media consultant since 2001 and acts as a supervisory board member for a number of German media
companies including Deutsche Entertainment and Pixelpark. Previously, he was Chairman and CEO of Universal in Germany, Austria and Switzerland
and President and CEO of Polygram in Germany and worked in senior management positions in a number of German and international companies
including BMW and Columbia Pictures.
Brian Spaulding is Senior Vice President and Chief Financial Officer for Walt Disney International. In this capacity, Brian oversees the finance, business
development and information technology activities for many of Disney’s international operations. Mr. Spaulding joined Disney in 1988 as a Senior
Auditor in the company’s Management Audit department. Since that time he has held a series of domestic and international positions in Disney’s
television, filmed entertainment and corporate groups.
32
Corporate
governance
This is the first year in which the Company has been subject to • For best practice provisions I I.2.1 and I I.2.2 of principle I I.2
the Tabakslat Code relating to Dutch Corporate Governance (Remuneration – Management Board) the Company partly
(the “Code”). The Company agrees with the aims of the Code deviates from the Code, as the current option and restricted
and seeks to achieve general compliance with it. During the stock schemes for the members of the Management Board
course of the year a number of changes to the rules and (as for employees as a whole) do not include any formal
regulations of the Company were developed with, and approved conditional criteria following a grant of options or restricted
by the Supervisory Board and shareholders, and have been stock. Additionally, options can be vested and exercised over
implemented. These changes were made in order to comply a period of four years (while the restricted stock vests in two
more fully with the provisions of the Code. equal tranches, two and four years after grant). There is no
formal requirement to retain stock following vesting or
At the AGM, changes to the Articles of the Company were exercise. It is not proposed to amend this scheme, as it
approved by the shareholders. The shareholders also approved broadly reflects that of the majority shareholder, Disney, and
a Corporate Governance Compliance Policy and Remuneration it is considered desirable by the Supervisory Board to have
Policy. Subsequently, new rules for the Supervisory Board and generally consistent incentive arrangements for senior
Management Board were approved by the Supervisory Board, management throughout both companies. To this end, the
together with rules for Audit, Remuneration and Appointment Supervisory Board approved new Option and Restricted
Committees. A number of corporate policies relating to business, Stock Scheme rules and these were approved by shareholders
financial conduct and whistle-blowing have also been approved in an EGM on September 13, 2005.
by the Supervisory Board and implemented and can be found on
the Company’s corporate website. • Although the Company complies with principle I I I.2
(Independence – Supervisory Board) the Board notes that
For the avoidance of doubt this report relating to corporate at present three of the four members of the Supervisory
governance is supplied by way of information only and not Board are employees of Disney. It is intended that a further
in purported satisfaction of Dutch law or regulation. As is Supervisory Board director, not employed by Disney, will
appropriate, full reports and information required pursuant to be appointed as soon as possible.
Dutch law and regulation will be incorporated into the Company’s
Dutch report which will be published later in the Spring. • Although the principles of the Supervisory Board sub-
However, as the following issues have been the subject of recent committees and their rules have been approved, these
discussion with the shareholders and were issues highlighted in committees have not yet been implemented. This is primarily
the Company’s Remuneration and Compliance Policies, we due to recent changes in personnel on the Supervisory Board
specifically draw your attention to the following; and it is intended that once a fifth Board member is
appointed, these committees will be staffed and will begin
their work. In the meantime, the Supervisory Board as a
whole will continue to perform the broad function of these
separate committees.
33
Corporate
governance continued
The Supervisory Board held 5 meetings with the Management

Board present and two without as well as a large number of
more informal contacts with and without members of the
Management Board being present. The CEO of the Management
Board consults with the Chairman and other members of the
Supervisory Board and their nominees on an informal but
regular basis. The items discussed included a number of
recurring subjects, such as the Company’s strategy, the financial
position, results and forecasts, business plans, corporate
governance and remuneration (including incentive plans) and
appointments. Other subjects included an assessment of the
structure and operation of the internal risk management and
control systems. The external auditor attended the meeting in
which the 2004 results were discussed.
34
accounts
Accounts contents
36 Report of Independent Auditors
37 Consolidated Balance Sheets
38 Consolidated Statements of Operations
39 Consolidated Statements of Cash Flows
40 Consolidated Statements of Shareholders’ Equity
41 Notes to Consolidated Financial Statements
35
Report of Independent Auditors
To the Shareholders of Jetix Europe N.V.

We have audited the accompanying consolidated balance sheets of Jetix Europe N.V. and subsidiaries (“the
Company”), as of September 30, 2005 and as of September 30, 2004 and the related consolidated statements of
operations, cash flows and shareholders’ equity for the years then ended which have been prepared on the basis
of accounting principles generally accepted in the United States of America. These financial statements are the
responsibility of the Company’s management. Our responsibility is to express an opinion on these financial
statements based on our audit.
We conducted our audit in accordance with auditing standards generally accepted in the United States of America.
These standards require that we plan and perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting
principles used and significant estimates made by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for our opinion.
In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the
financial position of Jetix Europe N.V. and its subsidiaries at September 30, 2005 and September 30, 2004 and the
results of their operations and their cash flows for the years then ended in conformity with accounting principles
generally accepted in the United States of America.
This report, including the opinion, has been prepared for and only for the Company’s members as a body in order
to meet the provisions of the listing agreement with the Euronext Stock Exchange in Amsterdam and for no other
purpose. We do not, in giving this opinion, accept or assume responsibility for any other purpose or to any other
person to whom this report is shown or into whose hands it may come save where expressly agreed by our prior
consent in writing.
PricewaterhouseCoopers LLP
Chartered Accountants
London, United Kingdom
January 16, 2006
36
Consolidated Balance Sheets
as of September 30, 2005 and September 30, 2004
ASSETS
2005 2004
Notes $’000 $’000
Cash and cash equivalents 124,278 86,022

5 Accounts receivable, net of allowance of $2,227,000 and $2,568,000 respectively 59,816 49,051
Prepaids and other assets 6,391 5,798
15 Amounts due from related parties 14,711 20,412
8 Programme rights, net 112,366 116,207
Investments in equity affiliates 1,486 2,134
6 Property and equipment, net 2,174 3,054
11 Deferred income taxes 9,092 12,101
7 Goodwill, net 28,016 28,016
Total assets 358,330 322,795
LIABILITIES, MINORITY INTERESTS AND SHAREHOLDERS’ EQUITY

2005 2004
$’000 $’000
Accounts payable 11,267 10,253

9 Accrued liabilities 49,645 49,035
Deferred income 8,703 14,033
15 Amounts due to related parties 24,433 10,477
10 Other liabilities 13,247 16,200
Minority interests 1,720 1,184
Total liabilities and minority interests 109,015 101,182
18 83,966,915 (2004 – 83,196,912) ordinary shares of m0.25 each and

100 (2004 – 100) priority shares of m0.25 each 21,876 21,629
Additional paid-in capital 457,170 449,751
Other reserves (204,114) (204,114)
Accumulated other comprehensive income 6,752 6,475
Accumulated deficit (32,369) (52,128)
Total shareholders’ equity 249,315 221,613
Total liabilities, minority interests and shareholders’ equity 358,330 322,795
The accompanying notes are an integral part of these consolidated financial statements.
37
Consolidated Statements of Operations
Year ended September 30, 2005 and September 30, 2004
2005 2004
Notes $’000 $’000
17 Revenues 187,838 165,345
Costs and expenses (122,371) (114,394)

17 Depreciation, amortisation and impairment (43,191) (45,804)
Operating income 22,276 5,147
Other income/(expense):
13 Interest income 4,501 2,814
14 Interest expense (2,064) (1,809)
Gain on foreign exchange 593 648
Equity in income of affiliates 787 810
Total other income, net 3,817 2,463
Income before tax and minority interest 26,093 7,610

11 Tax (5,960) (1,972)
Minority interest (expense)/income (374) 190
Net income 19,759 5,828
19 EARNINGS PER SHARE (CENTS)

2005 2004
Basic Earnings per share 23.7 7.1

Diluted Earnings per share 23.5 6.9
Weighted average number of ordinary shares outstanding (’000)
– Basic 83,502 82,618
– Diluted 84,065 84,156
38
Consolidated Statements of Cash Flows
Year ended September 30, 2005 and September 30, 2004
2005 2004
$’000 $’000
OPERATING ACTIVITIES
Net income 19,759 5,828
Adjustments to reconcile net income to net cash generated by operating activities:
Amortisation and impairment of programme rights 41,748 43,008
Depreciation of property and equipment 1,443 1,884
Impairment of property and equipment – 912
Provision for doubtful debts (341) (472)
Equity in income of affiliates (787) (810)
Dividends from equity affiliates 1,500 –
Minority interest expense/(income) 374 (190)
Deferred tax 3,009 (1,331)
Changes in operating assets and liabilities(1):
Accounts receivable (10,318) (5,474)
Amounts due from related parties 5,701 (4,082)
Programme rights (37,907) (33,990)
Prepaids and other assets (593) 865
Accounts payable 1,014 (2,445)
Accrued liabilities and deferred income (4,720) 12,291
Amounts due to related parties 13,956 (1,331)
Other liabilities (2,953) 16,200
Net cash generated by operating activities 30,885 30,863
INVESTING ACTIVITIES
Purchases of property and equipment (669) (1,169)
Net cash used in investing activities (669) (1,169)
FINANCING ACTIVITIES
Exercise of Stock Options 7,666 4,295
Net cash generated by financing activities 7,666 4,295
NET INCREASE IN CASH AND CASH EQUIVALENTS FROM

OPERATING, INVESTING AND FINANCING ACTIVITIES 37,882 33,989
NET INCREASE IN CASH DUE TO FOREIGN CURRENCY FLUCTUATIONS 374 583
NET INCREASE IN CASH AND CASH EQUIVALENTS 38,256 34,572

CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR 86,022 51,450
CASH AND CASH EQUIVALENTS, END OF YEAR 124,278 86,022
SUPPLEMENTAL CASH FLOW INFORMATION

CASH PAID FOR TAXES 2,869 1,316
CASH PAID FOR INTEREST 2,064 1,809
(1)
Changes in operating assets and liabilities include the impact of foreign currency translation movements.
39
Consolidated Statements of
Shareholders’ Equity
Accumulated(2)
Ordinary other
and compre- Compre-
priority Additional hensive hensive
shares paid-in Other(1) Accumulated income income
(Note 18) capital reserves deficit (loss) (loss)
$’000 $’000 $’000 $’000 $’000 $’000
BALANCE AT
SEPTEMBER 30, 2003 21,426 445,659 (204,114) (57,956) (1,012)
Net income – – – 5,828 – 5,828
Foreign currency
translation adjustments – – – – 7,487 7,487
Share options exercised 203 4,092 – – – –
Comprehensive income – – – – – 13,315
BALANCE AT
SEPTEMBER 30, 2004 21,629 449,751 (204,114) (52,128) 6,475
Net income – – – 19,759 – 19,759

Foreign currency
translation adjustments – – – – 277 277
Share options exercised 247 7,419 – – – –
Comprehensive income – – – – – 20,036
BALANCE AT
SEPTEMBER 30, 2005 21,876 457,170 (204,114) (32,369) 6,752
(1)
Deemed distribution of cash and note payable at IPO to all shareholders.
(2)
This consists solely of cumulative translation adjustments.
40
Notes to Consolidated Financial Statements
1. DESCRIPTION OF BUSINESS, ORGANISATION AND BASIS OF PRESENTATION

Description of business
Jetix Europe N.V. (together with its subsidiaries, “the Company”) is a pan-European integrated children’s
entertainment company with localised television channels & online, programme distribution and consumer
products (licensing, merchandising and home entertainment) businesses.
Channel and online operations began in October 1996 with the launch of the first channel in the United
Kingdom. In the last 9 years, the Company has established operations in most European countries and
together with its affiliates is currently broadcasting 15 children’s television channel feeds in 18 different
languages in 58 countries via cable and direct to home (DTH) satellite transmission. Main channel markets
currently include France, Germany, Italy, the Netherlands, Poland, Scandinavia, Spain, the United Kingdom and
various countries in the Middle East and Central and Eastern Europe. The Company also operates 17 fully
localised websites.
The Company’s programme distribution business is based on rights to children’s programming from the Jetix
Library. The Jetix Library comprises the following rights;
• The rights contributed by, acquired from or co-produced with ABC Family Worldwide, Inc. (ABCW) or
its affiliates.
• Other rights acquired from or co-produced with third parties.
The Jetix Library is one of the largest and most recognised libraries of children’s programming in the world.
The Company’s consumer products business covers many European countries and includes operations in
France, Germany, Italy, Spain, the Netherlands, the United Kingdom and Israel.
Organisation
Jetix Europe N.V. (Jetix Europe) was incorporated in the Netherlands in November 1999. At the initial public
offering of the ordinary shares of Jetix Europe (IPO) in November 1999, in consideration for 62.5 million
shares in Jetix Europe, Fox Family Worldwide, Inc. (FFWW) contributed to Jetix Europe, at book value, its
interests in the subsidiaries and businesses specifically noted on page 42.
On October 24, 2001, The Walt Disney Company (Disney) concluded the acquisition of the Company’s
majority shareholder, FFWW, and thereby assumed 75.7% ownership of Jetix Europe. As of that date, FFWW
changed its name to ABCW. ABCW indirectly holds 74.4% of the shares in Jetix Europe at September 30, 2005
(75.1% at September 30, 2004).
41
1. DESCRIPTION OF BUSINESS, ORGANISATION AND BASIS OF PRESENTATION (continued)

Basis of presentation
These consolidated financial statements are prepared under accounting standards generally accepted in the
United States of America (US GAAP) and do not constitute statutory accounts under Dutch Law. Dutch
statutory accounts are being produced and will be filed at the Chamber of Commerce, PO Box 378, 1200 AJ,
Hilversum, The Netherlands. A copy of the Dutch statutory accounts will be available from Jetix Europe’s
registered office, Bergweg 50, 1217 SC, Hilversum, The Netherlands.
The consolidated financial statements of Jetix Europe reflect the financial statements of:
Equity Interest
Country of (100% unless
Company Name Incorporation otherwise stated)
Jetix Entertainment Limited United Kingdom

Jetix Entertainment Spain SL Spain
Jetix Europe Channels B.V. The Netherlands
Jetix Europe Limited(1) United Kingdom
Jetix Europe Properties Sarl Luxembourg
Jetix Hungary Financial Management Limited Liability Company Hungary
Jetix Europe GmbH (formerly Fox Kids Germany GmbH) Germany
Jetix Israel Limited (formerly Fox Kids Israel Limited) Israel
Jetix Italy Srl (formerly Fox Kids Italy Srl) Italy
Jetix Poland Limited (formerly Fox Kids Poland Limited)(1) Isle of Man 80%
Jetix Services B.V. The Netherlands
Jetix Consumer Products UK Limited(1) United Kingdom
Jetix Consumer Products Italy Srl(1) Italy
Active Licensing France SAS(1) France
Jetix Poland NV(1) The Netherlands
Kids Entertainment Services EPE Greece
Lollipop Productions Limited (incorporated January 1, 2005) Israel
Jetix Consumer Products Israel Limited (merged into Jetix Israel Limited Israel
effective July 1, 2004)
Fox Kids Play B.V. (merged into Jetix Europe Channels B.V. The Netherlands
effective October 1, 2003)(2)
Fox Kids Israel Enterprises B.V. (merged into Jetix Europe Channels B.V. The Netherlands
effective October 1, 2003)
Active Licensing Germany GmbH (merged into Fox Kids Germany GmbH Germany
effective October 1, 2003)(1)
Fox Kids AB was liquidated as at July 5, 2004.
The Company also has the following affiliates accounted for under the equity method:
Country of
Company Name Incorporation Equity Interest
(1)
Jetix España SL (formerly Fox Kids España SL) Spain 50%
TV10 Holdings LLC(1) The United States
of America 50%
TV10 B.V.(1) The Netherlands 50%
(1)
These entities were contributed to Jetix Europe by ABCW (formerly FFWW) at the IPO.
(2)
The Company sold 50% of its shares in Fox Kids Play B.V. to Visiware S.A. in December 2002. Accordingly,
Fox Kids Play B.V. was equity accounted for in the year ended September 30, 2003. On October 1, 2003,
the Company reacquired 50% of the shares in Fox Kids Play B.V. and merged it into Jetix Europe
Channels B.V.
42
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Principles of consolidation
The consolidated financial statements comprise the accounts of Jetix Europe N.V. consolidated with the
financial statements of those entities under its control, including those entities and businesses contributed
by ABCW (formerly FFWW) at the IPO.
The Company uses the equity method of accounting for investments in affiliates where it does not have the
majority of equity, but where it does exercise significant influence.
All material intercompany accounts and transactions have been eliminated.
General Presentation
In circumstances where the classification of certain balances has changed from the previous year, the prior
year comparatives have been reclassified accordingly.
Cash and cash equivalents

Cash and cash equivalents consist of cash on hand and marketable securities with original maturities of
three months or less.
Revenue recognition – Channels & Online

Subscriber fees receivable from cable operators and DTH broadcasters are recognised as revenue over the
period for which the channels are provided and to which the fees relate. Subscriber revenue is recognised
as contracted, based upon the level of subscribers. Television advertising revenue is recognised as the
commercials are aired. In certain countries, the Company commits to provide advertisers with certain rating
levels in connection with their advertising. Revenue is recorded net of estimated shortfalls, which are
usually settled by providing the advertiser additional advertising time. In accordance with EITF 99-17,
“Accounting for Advertising Barter Transactions”, barter revenues, representing the receipt of goods and
services in exchange for advertising time on a television station, are recognised upon the airing of an
advertisement, where the fair value of the advertising surrendered is determinable based on the Company’s
own historical practice of receiving cash or other consideration that is readily convertible to a known cash
amount for similar advertising from buyers unrelated to the counterparty in the barter transaction.
Revenue recognition – Programme Distribution

Programme distribution revenue is recognised in accordance with SOP 00-2 “Accounting by Producers or
Distributors of Films” when the relevant agreement has been entered into, the product is available for
delivery, collectability of the cash is reasonably assured and all the Company’s contractual obligations have
been satisfied.
Revenue recognition – Consumer Products

Revenues from home entertainment, licensing and merchandising agreements which provide for the receipt
by the Company of non-refundable guaranteed amounts, are recognised when the licence or distribution
period begins, the payments are due under the terms of the contract, collectability is reasonably assured
and all performance obligations of the Company have been fulfilled. Amounts in excess of minimum
guarantees under these agreements are recognised when earned. Amounts received in advance of being
earned are recorded as deferred revenue.
Revenue is recorded net of Value Added Tax (VAT).
43
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

Advertising costs
Advertising costs are expensed as incurred. For the year ended September 30, 2005 and year ended
September 30, 2004 the Company incurred advertising costs totalling $0.9 million and $0.7 million,
respectively.
Programme rights
The Company adopted SOP 00-2 “Accounting by Producers or Distributors of Films” and SFAS No. 139
“Rescission of FASB Statement No. 53 and amendments to SFAS Nos. 63, 89 and 121” as of July 1, 2001.
Programme rights that are produced or acquired are stated at the lower of cost less accumulated
amortisation or fair value. Amortisation charge is based on the ratio of the current period’s gross revenues
to estimated remaining total gross revenues from such programmes. Each year management revises
estimates, based on historical and anticipated trends, of future revenue for each programme property.
Where television programme rights are licensed from third parties for a defined period for broadcasting on
the Company’s channels, usually for periods of between 2 and 5 years, these are amortised in accordance
with their expected usage over that defined period. Acquired television programme rights and related
liabilities are recorded when the licence period begins and the programme is available for use.
Property and equipment

Property and equipment, consisting mainly of computer equipment and office furniture and fittings, is
stated at cost less accumulated depreciation. Depreciation is provided using the straight-line method over
an estimated useful life of 3 to 10 years.
Leasehold improvements are amortised over the shorter of the term of the lease or the estimated life of
the improvements. Repair and maintenance costs are expensed as incurred.
The Company periodically reviews the carrying amount of property and equipment to determine whether
current events or circumstances warrant impairment to the carrying value and/or the estimates of useful
lives. When these events or circumstances arise that indicate that assets may be impaired, the assets are
written down to their recoverable amount, in accordance with SFAS No. 144, “Accounting for the
Impairment or Disposal of Long-Lived Assets”.
Trade receivables
Accounts receivable are reported at their net realisable or expected cash value.
Goodwill
In accordance with SFAS No. 142 “Goodwill and Other Intangible Assets”, goodwill recognised on an
acquisition is calculated as the excess of the fair value of the consideration over the fair value of the assets
and liabilities acquired.
Goodwill is not amortised but tested for impairment on an annual basis and whenever indicators of impairment
arise. The Company has determined that each business segment comprises its own reporting unit. There was
no impairment charge for the year ended September 30, 2005 (year ended September 30, 2004 – $nil).
44

Investments in equity affiliates
Investments in, and advances to equity affiliates, are accounted for under the equity method. Under this
method of accounting, the carrying value of the investment is increased or decreased by the Company’s
share of income or losses and decreased by any dividends.
Foreign currency translation

The functional currency of each of Jetix Europe’s subsidiaries is the currency of the primary economic
environment in which each subsidiary operates.
Accordingly, assets and liabilities recorded in foreign currencies in the balance sheets of Jetix Europe’s
subsidiaries are translated at the exchange rate between such functional currency and the US dollar at the
balance sheet date except for the share capital and reserves of those subsidiaries, which are translated at
historic rates. Revenues and expenses are translated at the average rate of exchange prevailing during the
period. Translation adjustments resulting from this process are charged or credited to accumulated other
comprehensive income.
Gains and losses arising from transactions denominated in currencies other than the functional currency are
included in determining net income for the period.
Fair value of financial instruments

SFAS No. 107, “Disclosures About Fair Value of Financial Instruments”, requires disclosure of fair value
information about financial instruments whether or not recognised in the consolidated balance sheet.
The amounts reported in the consolidated balance sheet for cash and cash equivalents, accounts receivable
and accounts payable approximate fair value due to the short-term maturity of these instruments.
Income taxes
In accordance with SFAS 109, “Accounting for Income Taxes”, deferred income taxes are recognised using
the asset and liability method. Deferred tax balances are established for the difference between the financial
reporting and income tax bases of assets and liabilities as well as operating loss and tax credit carry-forwards.
Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more
likely than not that some portion or all of the deferred tax assets will not be realised. Deferred tax assets
and liabilities are adjusted for the effects of changes in tax laws and rates on the date of enactment.
Earnings per share

Basic earnings per ordinary share is calculated using income available to ordinary shareholders divided by
the weighted average number of shares outstanding. The difference between basic and diluted earnings per
share arises after giving effect to the dilutive effect of all dilutive potential ordinary shares equivalents that
were outstanding during the period.
45

Use of estimates
The preparation of consolidated financial statements in conformity with US GAAP requires management of
the Company to make estimates and assumptions that affect the reported amounts of assets and liabilities,
the disclosure of contingent assets and liabilities at the date of the financial statements and the reported
amounts of revenues and expenses during the reporting period. Actual results could differ from those
estimates.
Stock option plan

The Company accounts for stock-based compensation using the intrinsic value method prescribed in APB
No. 25, “Accounting for Stock Issued to Employees”, and related interpretations. There are no performance
criteria attached to the exercise of the options. Accordingly, compensation cost for stock options is
measured as the excess, if any, of the quoted market price of Jetix Europe’s stock at the date of grant over
the amount an employee must pay to acquire the stock. The Company has also disclosed below the impact
on earnings that would result if stock options had been valued at their fair value at the grant date, in
accordance with SFAS No. 123, “Accounting for Stock-Based Compensation”.
The Company has adopted the disclosure provision of SFAS No. 123 and pursuant to its provision elected
to continue using the intrinsic value method of accounting for stock-based awards granted to employees in
accordance with APB 25. Accordingly, the Company has not recognised compensation expense for its stock-
based awards to employees. The following table reflects pro forma net income and earnings per share had
the Company elected to adopt the fair value approach of SFAS No. 123:
2005 2004
$’000 $’000
Net income as reported 19,759 5,828

Adjustment for notional expense under FAS 123, net of tax (967) (3,548)
Pro forma net income 18,792 2,280
Basic earnings per share (cents)

As reported 23.7 7.1
Pro forma 22.5 2.8
Diluted earnings per share (cents)
As reported 23.5 6.9
Pro forma 22.4 2.7
These pro forma amounts may not be representative of future disclosures since the estimated fair value of
stock options is amortised to expense over the vesting period and additional options may be granted in
future years.
46

In Note 2 of its 2004 annual report, the Company included a table disclosing pro forma net income and
earnings per share had it elected to account for its stock option plan under the fair value approach of SFAS
No. 123, “Accounting for Stock-Based Compensation”. Certain financial information was misreported due to
incorrect currency translation and number of options used and is corrected below in respect of the years
ended September 30, 2004:
a) Notional expense under SFAS No. 123 increased from $1,853,000 to $3,548,000;
b) Proforma net income decreased from $3,975,000 to $2,280,000;
c) Pro forma basic earnings per share reduced from 4.8 cents to 2.8 cents; and
d) Pro forma diluted earnings per share reduced from 4.7 cents to 2.7 cents.
No options were granted during the current year or during the prior year.
The estimated fair value of each option granted is calculated using the Black-Scholes option pricing model.
The weighted average assumptions used in the model were as follows:
2005
Risk free interest rate 4.0%

Expected years from grant until exercise 4
Expected stock volatility 60%
Dividend yield 0%
3. REORGANISATION
Effective October 1, 2003, Fox Kids Play B.V. and Fox Kids Israel Enterprises B.V. were merged with Jetix
Europe Channels B.V. (formerly Fox Kids Europe Channels B.V.).
Effective October 1, 2003, Active Licensing GmbH was merged with Jetix Germany GmbH (formerly Fox Kids
Germany GmbH).
47
4. RELOCATION EXPENSES
The Company relocated its operations in the UK and France to Disney’s premises in these markets during
the prior year. The Company incurred a charge of $8.0 million resulting from this relocation, which is
included in costs and expenses in the year ended September 30, 2004. The charge recognised included
a provision in respect of the anticipated costs of fulfilling the Company’s existing lease commitments
of $4.4 million (comprised of $3.2 million of lease exit costs and $1.2 million of refitting costs), information
technology reconfiguration of $1.2 million, move costs of $0.6 million, impairment of certain fixed assets
of $0.9 million and redundancy costs resulting from the contracting out of certain functions (see note 15)
to Disney of $0.9 million.
In order to induce the Company to relocate its operations in the UK and France, Disney provided the
Company with a $3.1 million operating lease incentive as at the year ended September 30, 2004 which,
in accordance with US GAAP, is deferred and recognised through the income statement over the term of
the operating lease to which it relates. During the year ended September 30, 2005, the provision relating to
the lease exit and refit costs was revised, resulting in an additional expense of $1.4 million in the current
year. Correspondingly, an additional operating lease incentive of $0.7 million was provided by Disney. The
amount of operating lease incentive recognised in the income statement for the year ended September 30,
2005 was $1.5 million. The operating lease incentive outstanding as at the year ended September 30, 2005
was $2.3 million.
5. ACCOUNTS RECEIVABLE
Accounts receivable consists of the following:
2005 2004
$’000 $’000
Billed receivables 30,229 27,689

Accrued income 29,587 21,362
59,816 49,051
6. PROPERTY AND EQUIPMENT

Property and equipment consists of the following:
2005 2004
$’000 $’000
Property and equipment 13,258 12,567

Leasehold improvements 1,202 1,115
14,460 13,682
Less accumulated depreciation and amortisation (12,286) (10,628)
2,174 3,054
48
7. GOODWILL
At September 30, 2005 goodwill which totals $28.0 million (September 30, 2004 – $28.0 million), was
comprised of the goodwill of $18.3 million arising from the acquisition of the minority interest in Fox Kids
Israel Enterprises B.V. on December 19, 2002 and the goodwill of $9.7 million arising from the acquisition of
the Fox Kids Netherlands Channel on December 1, 2000.
The Company purchased the 49.5% of shares in Fox Kids Israel Enterprises B.V. not owned by the Company
from the Middle East Communications Holdings BV as well as rights to the Israel Jetix library. Goodwill
arose from the difference between the purchase consideration and the fair value of the net assets acquired.
Goodwill has been fully allocated to the Channels & Online business segment (see note 17). The goodwill is
not tax deductible.
The Company adopted SFAS No. 142 as of July 1, 2001. Accordingly there has been no amortisation charge
since that date. As a result of the annual impairment review carried out on September 30, there was no
impairment charge for the year ended September 30, 2005 (September 30, 2004 – $nil).
8. PROGRAMME RIGHTS
Programme rights consist of the following:
2005 2004
$’000 $’000
Programme rights cost 508,281 470,374

Less accumulated amortisation and impairment (395,915) (354,167)
112,366 116,207
In accordance with SOP 00-2, the Company periodically performs a review of the fair value of the Jetix
library to determine whether any of the titles are impaired. This review compares the estimated remaining
ultimate profits to be earned to the net book value by title for all properties in the Jetix library. Where the
estimated remaining ultimate profits were lower than the net book value of a title, an impairment was
identified and the title was written down to fair value. During the year ended September 30, 2005 the
Company recorded an impairment charge of $1.6 million (year ended September 30, 2004 – $5.0 million).
49
8. PROGRAMME RIGHTS (continued)

The amortisation charge relating to programme rights, excluding any impairment charge, for the years ended
September 30, 2005 and September 30, 2004, was $40.1 million and $38.0 million respectively.
Of the net book value of programme rights at September 30, 2005, $83.5 million (year ended September 30,
2004 – $89.8 million) represents the rights of the Jetix library in the Company’s territories, with the
remainder being programming licensed from third parties for broadcasting by the channels operated by the
Company. At September 30, 2005 the net book value of programme rights included programmes in
production of $4.9 million (2004 – $2.2 million).
The Company expects to amortise the net book value of its programme rights on the following timescale:
Within one year 30-40%

Within three years 55-65%
Within five years 80%
9. ACCRUED LIABILITIES
Accrued liabilities consist of the following:
2005 2004
$’000 $’000
Participation and royalty costs 13,086 10,715

Accrued programme costs 7,757 15,141
Payroll liabilities 7,014 6,578
Taxation 3,583 3,503
Provision for indirect taxes 4,259 –
Relocation costs – 821
Other accruals 13,946 12,277
49,645 49,035
10. OTHER LIABILITIES

Other liabilities consist of the following:
2005 2004
$’000 $’000
Provision for lease exit costs 3,321 3,200

Operating lease incentive 7,526 13,000
Other provision 2,400 –
13,247 16,200
The operating lease incentive and provision for lease exit costs are discussed in notes 4 and 15. The other
provision is discussed in note 16.
50
11. TAX
The (provision)/benefit for income tax consists of the following:
2005 2004
$’000 $’000
Income taxes (1,727) (2,049)

Other taxes (1,224) (1,254)
Deferred income taxes (3,009) 1,331
(5,960) (1,972)
and are as follows:

2005 2004
$’000 $’000
The Netherlands – Current (543) (702)

Others – Current (2,408) (2,601)
– Deferred (3,009) 1,331
(5,960) (1,972)
The components of the (provision)/benefit for income taxes for the year ended September 30, 2005 and
the year ended September 30, 2004 were based upon the following sources of pre-tax income.
2005 2004
$’000 $’000
The Netherlands 1,011 368

Others 25,082 7,242
26,093 7,610
51
11. TAX (continued)

A reconciliation of the provision for income taxes with the amount computed by applying the statutory
income tax rate of the Netherlands of 31.5% (2004 – 34.5%) to income before provision for income taxes
and minority interest is as follows:
2005 2004
$’000 $’000
Income before tax and minority interests 26,093 7,610
Income before tax and minority interests multiplied by statutory rate of corporation tax 8,219 2,626
Effects of:
Permanent differences (4,757) (1,499)
Equity in income of affiliates (283) (279)
Timing differences subject to valuation allowance 2,382 3,321
Statutory income tax difference (720) (3,206)
Adjustments to tax charge in respect of previous periods (105) (245)
Other taxes 1,224 1,254
Current tax charge for the year 5,960 1,972
Where the Company has provided for income taxes, the provisions have been calculated at the statutory
rates in the relevant jurisdictions.
Deferred taxes
Principal components of the deferred tax assets and liabilities are as follows:
2005 2004
$’000 $’000
Deferred tax asset

Net operating losses 68,429 73,370
Fixed assets 2,867 1,896
Other (267) 1,980
Total 71,029 77,246
Valuation Allowance (61,937) (65,145)
Deferred tax 9,092 12,101
The estimated portion of the Deferred Income Tax Asset to be utilised during the year ended September 30,
2006 is $2.6 million.
Management has determined that as of September 30, 2005 approximately $61.9 million (year ended
September 30, 2004 – $65.1 million) of deferred income tax assets do not satisfy the recognition criteria
set forth in SFAS No 109 “Accounting for Income Taxes”. Accordingly a valuation allowance has been
recorded for that amount.
The above amount relating to net operating losses results from approximately $438.3 million of tax net
operating loss carryforwards as at September 30, 2005, of which approximately $118.9 million have no
expiry date and approximately $319.4 million expire between 2006 and 2012. Realisation of these net
operating losses is dependent on generating sufficient taxable income prior to the expiration of the loss
carryforwards, subject to any limitations on their use.
52
12. PENSION PLANS

Jetix Europe Limited operates a defined contribution group personal pension plan (the “Plan”) for United
Kingdom employees. The Plan is effectively a collection of individual personal pension plans. Jetix Europe
Limited contributes a percentage of eligible employees’ annual compensation, provided that the employee
contributes a minimum percentage. The contributions to the Plan are expensed as incurred and for the year
ended September 30, 2005 were $425,000 (year ended September 30, 2004 – $484,000).
13. INTEREST INCOME

2005 2004
$’000 $’000
Interest receivable on bank deposits 4,501 2,814
4,501 2,814
14. INTEREST EXPENSE

2005 2004
$’000 $’000
Interest expense 2,064 1,809
2,064 1,809
15. RELATED PARTY TRANSACTIONS

Sales to Parent Company
The Company has secured non-European distribution rights to certain properties (in addition to the
European rights). The Company in turn sold these rights to subsidiaries of its parent company ABCW.
During the year, sales to subsidiaries of ABCW were $0.3 million (year ended September 30, 2004 – $nil).
The amount receivable at September 30, 2005 was $1.2 million (September 30, 2004 – $2.1 million).
53
15. RELATED PARTY TRANSACTIONS (continued)

Logistical Services
Buena Vista International Television (BVITV), a Disney subsidiary, provides logistical services to the Company
in connection with its third party programme distribution. The Company pays BVITV on the basis of cost
plus a margin of 5% – 10% dependent on the service performed. The amount charged in the income
statement, included in Costs and expenses, relating to services provided by BVITV for the year ended
September 30, 2005 was $3.7 million (September 30, 2004 – $3.7 million). In addition BVITV incurs
distribution expenses on behalf of the Company whilst performing its services. These expenses are
recharged back to the Company. The amount charged to the income statement relating to distribution
expenses incurred by BVITV on behalf of the Company was $1.4 million for the year ended September 30,
2005 (year ended September 30, 2004 – $2.2 million). The amount owed to BVITV as at September 30, 2005
was $8.8 million (September 30, 2004 – $5.5 million).
Arrangements with Sogecable S.A. (Sogecable)

The Jetix channel in Spain is operated by Jetix España SL, a company jointly owned by a subsidiary of
Sogecable and the Company. Sogecable and its subsidiaries provide office and sales administration,
programming and production facilities and services to Jetix Spain. The costs incurred for the services with
Sogecable for the year ended September 30, 2005 were $4.3 million (year ended September 30, 2004 –
$1.4 million). The amount owed at September 30, 2005 was $0.4 million (September 30, 2004 – $0.6 million).
The Company leases rights to the Jetix Library to Jetix España SL. The lease fee for the year ended
September 30, 2005 was $5.0 million (September 30, 2004 – $4.1 million). The amount receivable at
September 30, 2005 was $2.2 million (September 30, 2004 – $nil).
Arrangements with United Pan-Europe Communications N.V. (UPC)

The minority shareholder in Jetix Poland Limited, a subsidiary of UPC, provided certain transmission,
programming and marketing services to the Jetix channels in Poland and Central and Eastern Europe during
the year. The amount charged in the income statement, included in Costs and expenses, in relation to
these services for the year ended September 30, 2005 was $0.4 million (year ended September 30, 2004 –
$1.0 million). There were no amounts payable to UPC for these services at September 30, 2005 (September
30, 2004 – $nil).
Trademark arrangements
Disney has granted the Company a trademark licence without a fixed term to use the “Jetix” name and
related logos without material charge.
54

Buena Vista Home Entertainment (BVHE)
On May 5, 2003, the Company entered into an agreement with BVHE, a subsidiary of Disney, to grant BVHE
the sole and exclusive right to exploit on VHS and DVD formats all home entertainment distribution and
exhibition rights for certain major programmes including Power Rangers and some of our programmes
based upon Marvel comics characters. The Company will receive from BVHE a minimum guarantee against
certain royalties during the term of the agreement, which ends on May 4, 2006, of which $1.4 million was
earned in the year ended September 30, 2005 (year ended September 30, 2004 – $0.7 million). The receivable
amount outstanding for the year ended September 30, 2005 was $0.4 million (year ended September 30,
2004 $0.4 million).
Disney Consumer Products (DCP)

On October 1, 2003 the Company appointed DCP, a subsidiary of Disney, to act as its licensing agent within
Europe and the Middle East in respect of the property, Power Rangers. The Company will receive from DCP a
minimum guarantee against certain royalties during the term of the agreement, which ends on September 30,
2006. The minimum guarantee received during the year ended September 30, 2005 was $7.2 million
(September 30, 2004 – $6.3 million). DCP will receive a commission of 30% of earned revenues in return for its
services and its commission earned for the year ended September 30, 2005 was $3.0 million (September 30,
2004 – $2.1 million) which was recorded as costs and expenses. During the year ended September 30, 2004,
DCP paid a marketing contribution of $1.3 million which was recorded net of costs and expenses, with no
such arrangement in the year ended September 30, 2005.
Super RTL
On September 30, 2003, the Company entered into a co-production agreement with Super RTL, a Disney
affiliate. Under the terms of the deal the Company will co-produce two series, namely W.I.T.C.H. and Oban Star
Racers, with Super RTL and a third party. W.I.T.C.H. was fully delivered in the year ended September 30, 2005
and earned revenues of $2.1 million (September 30, 2004 – $nil). The Company has also entered into a further
agreement to produce a second season of W.I.T.C.H.
55

Premises and facilities
During the prior year, the Company entered into arrangements with The Walt Disney Company Limited and
The Walt Disney Company (France) SAS with respect to the lease of office and broadcast operations
facilities and the provision of certain accounting functions in the UK and France. Under these arrangements,
the amount payable for services received during the year ended September 30, 2005 was $8.9 million
(September 30, 2004 – $1.3 million).
The relocation costs incurred and the amount recharged to Disney are disclosed in note 4.
As part of these arrangements, the Company will also receive an incentive of $5.2 million from Disney over
the next three years (September 30, 2004 – $9.9 million over four years). This together with the amount
recharged to Disney of $2.3 million (September 30, 2004 – $3.1 million) as disclosed in note 4 has been
accounted for as an operating lease incentive, which, in accordance with US GAAP, is deferred and
recognised in the income statement over the period of the leases.
Of the total receivable of $7.5 million, $3.4 million will be received after one year.
Receivables
ABCW collects certain receivables on behalf of the Company. The amount owed to the Company at
September 30, 2005 was $1.2 million (September 30, 2004 – $2.0 million).
TV10 B.V.
Through a shareholder agreement with Fox TV10 Holdings, Inc. (Fox), up to December 1, 2000, the
revenues and direct costs of the daytime programming of TV10 B.V. were attributed to the Company, with
those of the evening programming being attributed to Fox. Subject to certain limits, indirect costs were
allocated between the Company and Fox in proportion to revenue. Since December 1, 2000 any material
costs as well as revenues of TV10 B.V. in which the Company has an interest, are recharged to the Company.
The revenues recharged from TV10 B.V. for the year to September 30, 2005 was $nil (September 30, 2004 –
$nil). The costs recharged from TV10 B.V. for the year to September 30, 2005 was $1.5 million (September
30, 2004 – $1.1 million). The amount payable to TV10 B.V. at September 30, 2005 was $1.1 million
(September 30, 2004 – $0.8 million).
Programme Rights
The Company acquires certain programme rights relating to its territories from ABCW. The amount payable
to ABCW at September 30, 2005 was $9.4 million (September 30, 2004 – $1.8 million). The current year has
seen the co-production with ABCW of Super Robot Monkey Hyper Force Go! and Get Ed.
56
16. COMMITMENTS AND CONTINGENCIES

Commitments
The company leases transponders, office facilities, and certain programme related equipment. These leases
which qualify as operating leases, expire at various dates through 2010.
The Company also has various contractual commitments for the purchase of programme rights.
Contractual commitments for programme rights and non-cancellable future minimum payments for the
remainder of the non-cancellable operating lease periods are as follows:
Operating Programming
leases rights Total
Year Ending September 30, $’000 $’000 $’000
2006 19,485 20,950 40,435

2007 18,619 2,036 20,655
2008 9,963 – 9,963
2009 9,219 – 9,219
2010 589 – 589
Thereafter – – –
57,875 22,986 80,861
The non-cancellable future minimum payments included in the numbers above relating to operating leases
from Disney and its subsidiaries was as follows: for the year ending September 30, 2006 – $10.5m, for the
year ending September 30, 2007 – $10.8m, for the year ending September 30, 2008 – $8.5m, for the year
ending September 30, 2009 – $8.6m, for the year ending September 30, 2010 – $nil, and thereafter – $nil.
Total operating lease expenses were approximately $14.7 million and $11.0 million for the years ended
September 30, 2005 and September 30, 2004, respectively.
Litigation
As at September 30, 2005, the Company and a subsidiary of its major shareholder are in settlement discussions
with a third party over claims relating to the exploitation of the third party’s programming. The Company
has estimated that a reserve of $2.4 million is necessary to cover the amounts of such settlement.
17. SEGMENT INFORMATION

During the periods presented, the Company operated in three business segments based on its products and
services: Channels & Online (which principally consists of the operation and broadcast of television channels
and websites, subscription and advertising revenues), Programme Distribution (which principally consists of
the sale of programming to third parties) and Consumer Products (licensing and merchandising operations
and home entertainment).
The accounting policies of the segments are the same as those described in Note 2. In addition, for
segment reporting, the Company measures profitability based on Earnings Before Interest, Tax, Depreciation
and Amortisation (EBITDA). EBITDA is stated before interest, taxation, depreciation, programme amortisation
and impairment. EBITDA less depreciation, amortisation and impairment is equal to operating income.
57
17. SEGMENT INFORMATION (continued)

Business Segments
Revenues 2005 2004
$’000 $’000
Channels & Online 144,547 127,332

Programme Distribution 24,852 24,681
Consumer Products 18,439 13,332
Revenues(1) 187,838 165,345
(1)
Revenues exclude our share of non-consolidated joint ventures. In order to facilitate comparison with
our prior financial statements; revenues including our share of the revenues of the non-consolidated
joint ventures was $193.1 million, compared to $170.7 million in the year ending September 30, 2004.
Our share of non-consolidated joint ventures relates entirely to Channels & Online operations.
EBITDA 2005 2004

$’000 $’000

Shared costs not allocated to segments (15,510) (11,888)
EBITDA(2) 65,467 50,951

Less: depreciation, amortisation and impairment (43,191) (45,804)
(2)
EBITDA excludes costs related to the Company’s non-consolidated joint ventures.
Depreciation, amortisation and impairment 2005 2004

$’000 $’000
Channels & Online (30,677) (28,553)

Programme Distribution (8,507) (13,295)
Consumer Products (3,934) (3,662)
Shared costs not allocated to segments (73) (294)
(43,191) (45,804)
Programming and impairment charges are as follows: the Channels & Online segment had impairment
charges of $1.6 million (year ended September 30, 2004 – $3.4 million). The distribution segment had
impairment charges of $nil (year ended September 30, 2004 – $1.6 million).
Identifiable assets 2005 2004

$’000 $’000

Shared assets not allocated to segments 652 1,132
358,330 322,795
58

Geographic Segments
Revenues 2005 2004
$’000 $’000
United Kingdom and Ireland 55,505 49,567

Italy 24,182 18,018
Benelux 21,286 20,217
France 21,115 20,510
Central and Eastern Europe 15,599 13,690
Germany 15,403 13,813
Spain and Portugal(1) 9,608 9,031
Nordic Region 8,653 6,944
Middle East 8,433 8,106
Poland 6,314 3,738
Other 1,740 1,711
Revenues 187,838 165,345
EBITDA(2) 2005 2004

$’000 $’000

Italy 10,309 7,765
Benelux 7,057 7,985
France 6,223 4,812
Central and Eastern Europe 3,956 2,976
Germany 5,921 3,981
Spain and Portugal 5,545 4,944
Nordic Region 2,105 732
Middle East 2,636 2,871
Poland 2,594 (231)
Other 1,197 1,089
Shared costs not allocated to segments (15,510) (11,888)
EBITDA 65,467 50,951
Less: depreciation, amortisation and impairment (43,191) (45,804)
(1)
Excludes the Company’s share of revenues of non-consolidated joint ventures.
(2)
EBITDA excludes costs related to the Company’s non-consolidated joint ventures.
59

Geographic Segments
Identifiable assets 2005 2004
$’000 $’000

France 16,520 9,127
Benelux 220,486 238,425
Italy 45,317 7,762
Other 67,960 46,353
358,330 322,795
Revenues are attributed to geographic segments based on the destination of the sale. Assets are attributed
to geographic segments based on the location of individual assets. The programme rights and goodwill are
located in the Benelux segment.
The only customer which has had revenues greater than 10% of the revenues for at least one of the periods
presented is as follows:
Revenue % Revenue %
2005 2005 2004 2004
$’000 $’000
Customer A 27,125 14.4 33,049 20.0
18. SHARE CAPITAL

The authorised share capital of Jetix Europe consists of 349,999,900 ordinary shares with a nominal value of
m0.25 per share, and 100 priority shares, each with a nominal value of m0.25 per share. The issued shares
are as follows:
Priority(1) Ordinary(2)
shares shares Total
Priority Ordinary Nominal Nominal Nominal
shares shares Total value value value
Number Number number $’000 $’000 $’000
Issued at September 30, 2004 100 83,196,912 83,197,012 0 21,629 21,629

Shares issued during the year – 770,003 770,003 – 247 247
Issued at September 30, 2005 100 83,966,915 83,967,015 0 21,876 21,876
(1)
The nominal value of priority shares at September 30, 2005 is $26 (September 30, 2004 – $26).
(2)
The shares issued during the year are translated using the rate at the date of issuance.
60
18. SHARE CAPITAL (continued)

The priority shares are held by BVS Entertainment, Inc. (BVSEI, formerly Saban Entertainment, Inc.) a wholly
owned subsidiary of ABCW. The priority shares can only be transferred with the approval of the Board of
Management and the Supervisory Board. The holder or holders of the priority shares have the right, inter
alia, to: nominate members for the appointment of the Board of Management and the Supervisory Board;
receive a non-cumulative preferential dividend of 5% of the nominal value of each share per annum;
propose amendments to the Articles of Association; propose the dissolution, legal merger or split-up of
Jetix Europe; and receive a preferential liquidation distribution.
The members of the board of directors of BVEI are Griffith Foxley, Marsha Reed and Joseph Santaniello.
The members of the board of directors of ABCW are Marsha Reed and David Thompson. The directors of
BVEI and ABCW are responsible for the management of their respective companies. None of the priority
shares are held by a member of the Board of Management of Jetix Europe.
19. EARNINGS PER SHARE

The earnings per share is computed using the net income for each period divided by the weighted average
number of shares in issue in each period.
The following table sets forth the computation of basic and diluted earnings per share.
2005 2004
Numerator ($’000)
Net income 19,759 5,828
Denominator (’000)
Basic – weighted average ordinary shares outstanding 83,502 82,618
Dilutive effect of employee stock options 563 1,538
84,065 84,156
Basic earnings per share (cents) 23.7 7.1
Diluted earnings per share (cents) 23.5 6.9
For the year ended September 30, 2005, options to acquire shares totalling 30,332 (September 30, 2004 –
739,236) were excluded from diluted earnings per share, as their impact was anti-dilutive.
61
20. STOCK OPTION PLAN

Under the Jetix Discretionary Stock Option Scheme, Jetix Europe may grant options to acquire shares to
employees at exercise prices equal to or exceeding the market price at the date of grant. Options vest
equally over a four-year period from the date of grant and expire ten years after the date of grant. Shares
available for future option grants at September 30, 2005 totalled 5,447,676 (September 30, 2004 – 4,856,281).
The following table summarises information about stock option transactions:
2005 2005 2004 2004

Weighted Weighted
average average
exercise Number exercise Number
price of price of
(Euro) options (Euro) options
Outstanding at beginning of year 7.33 2,718,045 6.92 3,927,307

Awards granted – – – –
Awards forfeited 5.11 (591,399) 6.88 (531,657)
Awards exercised 7.71 (769,999) 5.28 (677,605)
Outstanding at September 30 8.08 1,356,647 7.33 2,718,045
Exercisable at September 30 13.03 476,628 13.61 715,036
The following table summarises information about stock options outstanding at September 30, 2005:
Outstanding Exercisable
weighted
average Weighted Weighted
remaining average average
years of exercise exercise
Exercise Number contractual price Number price
prices – Euro of options life (Euro) of options (Euro)
3.4 – 5.4 911,279 7.91 5.32 41,260 5.43

9.1 – 13.5 415,036 4.37 13.41 405,036 13.41
16.5 – 20.2 30,332 4.64 18.18 30,332 18.18
62
Jetix Europe N.V.
Jetix Europe N.V.


Jetix Europe N.V.
Annual Review and
Jetix Europe N.V.

Bergweg 50, 1217 SC
Hilversum
The Netherlands
or contact:
Investor Relations
Hammersmith
London W6 9PE
Tel: +44 20 8222 3600

Fax: +44 20 8222 5906
www.jetixeurope.com
group at a
glance
Our Business Lines
Channels & Online

contents
2 Our Highlights
4 Our Content
6
8
Our Future
10
12
14
Our History
32
33
35
Supervisory Board
Accounts
Consumer Products
Jetix Europe N.V.
Jetix Europe N.V.


Jetix Europe N.V.
Annual Review and
Jetix Europe N.V.

Bergweg 50, 1217 SC
Hilversum
The Netherlands
or contact:
Investor Relations
Hammersmith
London W6 9PE
Tel: +44 20 8222 3600

Fax: +44 20 8222 5906
www.jetixeurope.com

Jetixeurope Annual Report 2005 en

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Jetix Europe N.V.

Jetix Europe N.V.

Annual Review and Financial Statements 2005

Jetix Europe N.V.

Tel: +44 20 8222 3600

Broadcasts in 58 countries, reaching more than 41.8 million

Broadcasts in 58 countries, reaching more than 41.8 million

We are a leading kids entertainment

Our majority shareholder, Disney,

155.5(4) 187.8 97.4

Revenues (6) Subscription Revenues (6), (7)

58.9(4) 58.0(11) 47.1

EBITDA (5) Advertising Revenues (6), (8)

Operating Cash Flow Households reached by channels

In the futuristic world of Progress

This epic series chronicles the

Following the huge success of Pucca

Galactik Football follows the

alliance of the Jetix global

Jetix Europe is a partner in the Jetix global brand alliance, established in

Jetix is becoming a truly global phenomenon 1

’01 58 countries in 18 languages via 15 channel feeds

Channels launched in Israel and Greece

Hungarian channel extended to Czech Republic

Disney acquires 100% of Fox Family Worldwide,

Channels now reach 38.3 million households in

Buena Vista International Television appointed to

Fox Kids Europe now reaches 32.3 million

Disney Consumer Products appointed to represent

Channels now reach 34.8 million households in

“I am pleased that we achieved strong

Revenue by line of business Revenue by territory

Amortisation, Impairment and Depreciation Financial Income

Revenue (7) EBITDA (8)

>>> Channel subscribers increase by >>> Launch of new channel franchise

>>> Channels broadcasting in 58 countries >>> New media trials underway on

>>> Key channel distribution deals renewed

Revenue EBITDA (7)

“Programme distribution revenue has increased for the first time in

>>> Strong on-air performance of >>> Significant improvement in

18.4 5.5(5) 6.3

Revenue EBITDA (7)

“Consumer products has performed well, driven by strong sales from

PAUL TAYLOR Dene Stratton

Supervisory Board changes

The Supervisory Board held 5 meetings with the Management

To the Shareholders of Jetix Europe N.V.

Cash and cash equivalents 124,278 86,022

Total assets 358,330 322,795

LIABILITIES, MINORITY INTERESTS AND SHAREHOLDERS’ EQUITY

Accounts payable 11,267 10,253

Total liabilities and minority interests 109,015 101,182

18 83,966,915 (2004 – 83,196,912) ordinary shares of m0.25 each and

Total shareholders’ equity 249,315 221,613

Total liabilities, minority interests and shareholders’ equity 358,330 322,795

17 Revenues 187,838 165,345

Costs and expenses (122,371) (114,394)

Operating income 22,276 5,147

Total other income, net 3,817 2,463

Income before tax and minority interest 26,093 7,610

Net income 19,759 5,828

19 EARNINGS PER SHARE (CENTS)