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Jetix Europe N.V (0K1V)

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Thursday 13 November, 2008

Jetix Europe N.V

Jetix Europe N.V. Announces Results for the Yea...





  * Revenue decreased by ¤29.5[1] million to ¤136.9 million.  This
    was in line with management's expectations and the guidance given
    at the interim results

  * The decline in revenue was primarily due to the effects of a
    limited number of previously announced deals, combined with
    adverse exchange rate movements

  * EBITDA[2] was down ¤18.6 million at ¤50.8 million.  The revenue
    impact was partially offset by a reduction in marketing, selling
    and distribution costs

  * Operating profit was ¤12.7 million, a decline of ¤11.7 million.
     Lower amortisation costs further limited the impact of the
    revenue reduction

  * Net profit attributable to shareholders was ¤20.1 million

  * Diluted earnings per share were down 20.3 cents to 23.6 cents per
    share

  * Channel subscribers increased 1.8 million to 52.3 million
    households

  * Operating cash flow increased ¤11.1 million to ¤37.5 million




Amsterdam, The Netherlands and London, UK - Jetix Europe N.V.  (Jetix
Europe or the Company, "we",  "our") (AMEX: JETIX; Reuters  JETIX.AS;
Bloomberg:  JETIX.NA),  one  of  Europe's  leading  integrated   kids
entertainment companies, today  announced its  financial results  for
the year  ended  September 30,  2008.    Revenue decreased  by  ¤29.5
million to ¤136.9 million, compared with the year ended September 30,
2007.  This  was  in line  with  management's expectations,  and  the
guidance given at the  interim results.  The  decline in revenue  was
primarily due  to  the effects  of  a limited  number  of  previously
announced deals, combined with an adverse movement in exchange rates.
 At exchange rates consistent with the prior year, revenue would have
been ¤144.9  million. Operating  profit was  down ¤11.7  million,  at
¤12.7 million.   The decline  in revenue  was partially  offset by  a
reduction in marketing, selling and distribution costs, as well as  a
decrease  in  amortisation   costs.   Net   profit  attributable   to
shareholders was  ¤20.1 million.   Operating cash  flow increased  by
¤11.1 million to ¤37.5 million.  Subscribers increased by 1.8 million
to 52.3 million at September 30, 2008.

Paul Taylor, Chief Executive Officer,  said "Throughout this year  we
have continued to pursue our core  strategy - creating the best  kids
entertainment content  and delivering  it whenever  and wherever  our
audience wants to engage with it.

Our new programming team has  made a strong start, commissioning  two
outstanding  new  co-productions.   Their  first,  Jimmy   Two-Shoes,
continues Jetix's drive  to create strong  characters in shows  which
combine action with humour.   The other, Kid  vs. Kat, develops  this
further, and I am confident that  both shows will prove popular.   We
have also increased the level of  resources that we are investing  in
our creative development process, ensuring that our new team is  well
positioned to uncover the  best ideas and grow  them into our  future
hit franchises.

We have continued  to strengthen  our programming  alliance with  The
Walt  Disney  Company  (Disney).   We  collaborate  closely  on   our
long-term hit  property,  Power  Rangers, and  are  co-producing  its
seventeenth season.   We also  have a  new initiative  with  Disney's
programming team to develop live-action series.  This initiative  has
been given increased impetus  with Disney's recently announced  plans
to launch  a  new channel,  Disney  XD, in  the  US.  Disney  has  an
impressive track record and we are  uniquely placed in being able  to
access their expertise in this area.

Our programming alliance with Disney also benefits us in other areas.
 We have continued to air Disney content on a number of our channels,
and in the US, Disney has been airing the second series of Pucca, one
of the productions Jetix Europe developed.

We have renewed a number of  major carriage deals this year,  notably
in Eastern  Europe  and  with  Canalsat  in  France.   Following  the
Canalsat  deal,  we  decided   to  restructure  our  French   channel
operations in  order to  take  advantage of  the economies  of  scale
available from working  more closely with  Disney.  This deal  allows
Jetix to continue to  benefit from a  profitable business in  France,
whilst limiting our  risk and  ensuring that we  benefit from  future
revenue growth.

We are also realising  synergy benefits with  Disney in other  areas.
 This year we  signed an important  deal which secures  us access  to
Disney's new integrated sales structure.  Disney-ABC-ESPN  Television
(DAET) has been created to pull together under one organisation sales
of programming, channels and new media.  DAET already services  Jetix
Europe's programme sales  and this deal  extends the relationship  to
include our channels and digital video content.  I am confident  that
being presented  alongside Disney's  broad portfolio  of products  to
their wide range of established contacts will ensure that we are able
to maximise our revenue in these areas.

During the year we have also been investing in the development of our
online and mobile  businesses.  We  have redesigned  our websites  to
take  advantage  of  the   opportunities  presented  by  the   latest
developments in  technology.   Our  new  sites  include  a  range  of
community features, such as avatars and loyalty rewards, as well as a
new video-on-demand  player  and  an improved  games  offering.   The
enhanced sites are currently being launched, offering our audience  a
new destination  where they  can be  entertained and  where they  can
engage and interact with our characters.

We continue  to distribute  our content  through various  third-party
digital platforms.  As the  range of different distribution  channels
continues to increase, we  are working to  ensure that wherever  kids
search  for  entertainment,  we  are  present.   This  year  we  have
significantly   increased    our   mobile    distribution   with    a
multi-territory deal with Orange, and we have recently launched a new
service offering  some  of our  content  on a  download-to-own  basis
through iTunes in the UK.

As a full  service kids entertainment  company, creating content  and
then delivering it  through a  broad range of  different media,  from
television and  online to  consumer products,  Jetix Europe  is  well
positioned for  the future.   We  will continue  to pursue  our  core
strategy, to leverage our relationship with Disney and to deliver the
very best kids entertainment possible."

Dene Stratton,  Chief  Financial  Officer,  said  "As  expected,  the
results we are announcing today  have been adversely affected by  the
impact of a  limited number of  specific deals, as  well as  exchange
rate movements.  However, I am pleased  that the results are in  line
with our  guidance, and  that our  strong focus  on cost  control  is
evident in reduced operating costs.   We have achieved strong  growth
in operating cash flow  and this year we  generated ¤37.5 million  of
operating cash flow."


OPERATING REVIEW

Channels and Online


  * Subscribers increased by 1.8 million to 52.3 million households
  * New structure in France following multi-year distribution deal
    with Canalsat
  * DAET appointed to service the distribution of our channels
  * Major re-launch of Jetix branded websites
  * Online content distribution launched on iTunes


Despite the effects on revenue of a limited number of specific deals,
the Channels and Online division has continued to expand and  develop
its operations.  We have  grown the number  of households reached  by
our channels,  enhanced  the  appeal  of  our  content  with  further
localisation and increased our investment in digital media.  We  have
also agreed to be part of  a new sales structure which leverages  the
strengths of our majority shareholder,  Disney, and should ensure  we
maximise future revenues.

At the end  of the period  our channels reached  58 countries  across
Europe and the Middle East. We broadcast 15 separate channel feeds in
19 languages, and our 18 websites offer our audience the  opportunity
to interact directly with our content.

We have  increased  the  number  of  subscribers  to  our  television
channels by 1.8 million, and we now reach 52.3 million households. We
continued to  achieve  strong  growth  on  our  Central  and  Eastern
European (CEE) channel  feed, primarily serving  Russia and  Romania,
which increased the number of households reached by over one million.
 Our Polish channel  also performed well,  increasing subscribers  by
10%.  These increases  were partially  offset by a  reduction in  the
number of households reached by our channel in Turkey, as one of  our
distribution contracts came to an end.  We do not expect this to have
a significant financial impact.  In  France we saw strong  subscriber
growth of almost  20% as we  continue to benefit  from the  increased
carriage we secured following the merger of TPS and Canalsat.

We have continued to localise our presence in Eastern Europe with the
addition of a Bulgarian language track to our CEE feed.  Jetix is the
first dedicated kids channel to broadcast a local language channel in
this market, helping us to  consolidate our position by securing  new
distribution and increasing  the number of  households we reach.   In
Serbia we have begun the process of localisation with the addition of
Serbian subtitles.  This  has already delivered  results through  the
renewal  of  our  distribution  contract  with  the  local  satellite
television operator, SBB.

We continue to realise synergies with Disney.  In France we secured a
multi-year distribution agreement with  Canalsat and, following  this
agreement, we have restructured our operations.  We have licensed the
operation of the Jetix channel in France to the local Disney  channel
operations, allowing us to take further advantage of the economies of
scale available from working closely with Disney.  This new structure
ensures that Jetix Europe will continue to benefit from a  profitable
business in France.

Since the  period  end  we have  secured  a  multi-year  distribution
agreement in  Eastern Europe  with UPC  to continue  carriage of  our
channels on  their platforms  in five  markets.  UPC  is one  of  our
largest distributors  in the  region, and  this deal  covers  Poland,
Romania, Hungary, Slovakia and the Czech Republic.  In Eastern Europe
we have  also renewed  our  distribution deal  with NTV,  our  second
largest distribution partner in Russia.   In the UK we have  recently
exercised our option  with Sky  to extend  carriage by  two years  to
2012.  This secures our long-term distribution in one of Europe's key
pay television markets.

In June we  announced a  fundamental change to  the way  we sell  our
channels and  digital video  content.   We have  signed a  deal  with
Disney  for  Disney-ABC-ESPN   Television  (DAET)   to  service   the
distribution of  our channels.   This means  that, since  July  2008,
Jetix Europe's channels  and digital content  have been presented  to
customers alongside the portfolio of Disney and ESPN channels,  films
and television programmes for  which DAET is currently  responsible.
DAET  already   services   Jetix  Europe's   programme   distribution
business.  This  new deal  will allow  Jetix Europe  to benefit  from
DAET's distribution expertise and  strong market presence across  our
key territories.

Advertising revenue grew strongly in  Eastern Europe.  In Russia,  we
more than doubled advertising  revenue as we  increased the scale  of
our business.  Our  Poland channel feed  grew advertising revenue  by
30%, whilst our Hungary, Czech, Slovakia channel feed achieved growth
of more than 25%.  In  our more developed markets advertising  growth
was more constrained. Healthy growth in Italy, Spain and  Scandinavia
was more than offset by declines in The Netherlands and France.   The
reported advertising revenue in France was lower than the prior  year
as  we  no  longer   recognise  advertising  revenue  following   our
restructuring[3].  In the UK,  local currency advertising growth  was
negated by  the  decline  in  the  UK  pound  against  our  reporting
currency, the euro.

We are currently re-launching our Jetix branded websites.  The  sites
have been redesigned to take advantage of the latest developments  in
technology.  We have  introduced a range  of new features,  including
personalised avatars,  new  navigation  tools,  an  enhanced  loyalty
scheme and improved interactive  applications.  We have also  focused
on improving  our games  offering,  one of  our most  popular  online
activities, and we have invested in our video-on-demand player.  This
investment has been in both  the infrastructure, with new  underlying
technology, and in content, where we have begun commissioning several
series of shorts  primarily for  online distribution.  Some of  these
series are  based  on  our main  television  content,  whilst  others
develop new  characters, which  if  successful could  inspire  future
television properties.

We are  also  distributing  our content  through  online  and  mobile
distribution platforms, allowing  us to reach  our audience  whenever
and wherever they would  like to engage  with our characters.  Online
video distribution  continues  to expand  and  we offer  our  content
through a range of different providers covering a number of  business
models,   including   transactional   video-on-demand,   subscription
services and download-to-own.

We have recently launched a range of our most popular series for sale
on iTunes in the UK, and  we have other video-on-demand deals in  six
countries.  Our  channels or  content are  also available  on  mobile
phones, either through an aggregator or from a network operator.   At
present we  have  services  reaching  eight  countries,  including  a
multi-territory deal with Orange which  has led the expansion of  our
mobile offering into Eastern Europe.

Programme Distribution


  * Strong sales from Power Rangers and Yin Yang Yo!
  * Second series of Pucca delivered to US alliance partners
  * Five new series commissioned or acquired
  * 165 new episodes delivered
  * Programme pipeline of 95 episodes


The  majority  of  our  programme  distribution  revenue  comes  from
programme sales  to third-party  free-to-air broadcasters,  which  is
serviced by DAET.   These sales are  predominantly denominated in  US
dollars and  so have  been impacted  by  the fall  in the  US  dollar
against the euro through the period.  Revenue has also been  affected
by a reduced  volume of  episodes supplied  outside of  Europe and  a
production commissioned in the prior  year from our Israel  operation
which was  not  repeated this  year.   However, the  success  of  the
original Israeli series has led  to a new series being  commissioned,
which we will be delivering next year.

Our third-party  programme sales  were led  by Power  Rangers,  which
again  sold  in  most  major  markets.  Yin  Yang  Yo!,  the   latest
co-production from the  Jetix programming alliance  with Disney  also
sold well, as did our  recent acquisitions Captain Flamingo and  Iggy
Arbuckle.  These shows continued to deliver strong audiences, ranking
as one of the top two shows with kids in their timeslots in the major
European markets in which they aired.

We have supplied a  second series of Pucca  to Disney ABC  Television
Group, our Jetix alliance  partner in the US.   The show airs in  the
Jetix programming block on Toon  Disney and has continued to  perform
well, ranking as one of their top ten series.  As we only acquire  US
rights on an opportunistic basis,  the volume of programming we  have
supplied is lower  than in the  previous year, and  we do not  expect
further sales in the near future.

During the year we have secured five new series.  Through our  global
programming alliance with Disney we have commissioned a new series of
Power Rangers.   This  will  be the  seventeenth  season  in  Europe,
highlighting the on-going attractiveness  of this property.  We  have
commissioned two new co-productions, Jimmy Two-Shoes and Kid vs Kat.

Jimmy Two-Shoes is the first commission from our new programming team
and it is  being produced  by Breakthrough Animation  in Canada.   It
follows the adventures of fourteen-year-old Jimmy after he falls into
the weird world of  Miseryville.  We are pleased  that in the  recent
Mipcom Junior television programming  market Jimmy Two-Shoes was  the
most viewed  show by  potential  buyers.  This  is the  highest  ever
ranking for a new Jetix show and was achieved against a field of more
than 1,000 other titles.  Kid vs.  Kat will be produced by Studio  B,
which also  produced  Pucca  for  us.   It  follows  the  exaggerated
conflicts between a malevolent  cat with extra-terrestrial links  and
the beleaguered  ten-year-old boy  to whom  it has  taken a  demented
dislike.

We have also acquired two  new series from Cookie Jar  Entertainment,
Magi-Nation   and   World   of   Quest.    Magi-Nation   is   a   new
action-adventure series set in an ancient magical world and World  of
Quest is a fantasy action-comedy following Prince Nestor on his quest
against the evil Lord Spite.

During the  year  we have  taken  delivery  of 165  new  episodes  of
programming.  This includes episodes from  each of our major  sources
of  programming.   We   have  received  new   episodes  from   series
co-produced through  our  programming  alliance  with  Disney,  Power
Rangers  and  Yin   Yang  Yo!;   new  episodes   from  Jetix   Europe
co-productions Pucca, Combo Ninos and Kid  vs. Kat,  and new  content
from our acquired series Captain Flamingo, Urban Vermin,  Magi-Nation
and World of Quest.

At the end of the period we had 95 episodes in production.

Consumer Products


  * Power Rangers remains largest property
  * Pucca continues strong performance
  * Four new magazines launched
  * Strong home entertainment sales of Marvel catalogue
  * Consumer products rights secured on new series and properties


As expected, the reported results  in our consumer products  division
have been affected by the decision  not to produce a third series  of
A.T.O.M. Alpha Teens on Machines.  As a result the master toy licence
sale in the  prior year  was not repeated.   There has  also been  an
impact on  reported revenue  from  the change  in our  contract  with
Disney Consumer  Products,  which  was phased  in  during  the  first
quarter of the prior year, and the fall in the US dollar against  the
euro.

Power Rangers, our largest selling property, is represented for us by
Disney Consumer Products  (DCP).  Overall Power  Rangers revenue  has
been under  pressure as  we have  seen increased  competition from  a
number of  new  properties  with  a similar  target  audience,  in  a
difficult trading environment.  However, following last year's change
in our  contractual arrangements  with  DCP, which  allows us  to  be
included directly in  DCP's agreements,  we have  seen a  significant
increase in  our  volume  of contracts,  highlighting  Power  Rangers
continued popularity.  We  have also  been expanding  our sales  into
Eastern Europe, building  upon our strong  channel presence in  these
markets.

Jetix  Consumer  Products  (JCP),  our  in-house  consumer   products
division, had a  good year  with strong  revenue growth  in both  its
merchandising and home entertainment  divisions.  JCP represents  all
of our owned and third-party properties, apart from the Power Rangers
rights which we have licensed to Disney.

In JCP's merchandising division we  have continued to develop  Pucca,
which again  delivered  strong  revenue  growth  this  year.   France
remains Pucca's  key market,  with fashion  and stationery  the  most
important categories.   We have continued to exploit the Jetix  brand
with new magazines launched in Turkey, Hungary, Romania and Bulgaria.
 Following these launches we have  ten magazines across Europe,  each
of which helps  to build the  Jetix brand and  offers new  commercial
opportunities for our advertising partners.

Home entertainment has  also seen  strong revenue  growth this  year.
 Our  catalogue  of  Marvel  series,  including  characters  such  as
Spiderman, The  Incredible Hulk  and  Iron Man,  has been  a  notable
highlight.  We have secured a number  of new deals, reaching over  30
countries.   A range of Marvel titles  was also licensed in Italy  to
the newspaper Gazzetta  dello Sport  where the series  featured in  a
promotion, with an  exclusive DVD available  for purchase by  readers
who also  bought a  newspaper.  Some  of the  Marvel licensing  deals
include  a  commitment  to  advertise  the  products  on  our   local
television  channels,   demonstrating   the  benefits   of   building
franchises across all of our operations.

During the year we have continued  to expand the range of  properties
we represent.  We have  secured the consumer  products rights to  our
two new co-productions, Jimmy Two-Shoes and Kid vs. Kat.  We are also
the agent for all  available consumer products  rights on our  recent
acquisitions,  World  of  Quest   and  Magi-Nation.   Alongside   our
television properties we  are looking  to leverage the  scale of  our
consumer products  business,  and  we have  just  been  appointed  as
exclusive merchandising licensee  by the  Really Useful  Group for  a
number of their major musicals.  We  will be representing a range  of
the non-music merchandising rights outside of the theatre for  Joseph
and the Amazing  Technicolor Dreamcoat, Cats,  Starlight Express  and
Evita.


FINANCIAL REVIEW

Revenue

Revenue decreased  18% to  ¤136.9 million.   On a  constant  currency
basis, revenue would have been ¤144.9 million, a decline of 13%  (see
note 5).

Channels  and  online  revenue  decreased  15%  to  ¤104.2   million.
Subscription revenue decreasing 22% to  ¤62.6 million as a result  of
rate reductions in  a limited number  of markets, the  impact of  the
appreciation of  the  euro against  the  pound sterling  and  the  US
dollar[4], and the licensing of  our channel operations in France  to
The Walt Disney Company France[5].   This was partially offset by  an
increase in the subscriber rate in a key Western European market  and
increases in the  number of  subscribers in Italy,  CEE and  Poland.
Advertising revenue increased  1% to ¤37.7  million[4].  At  exchange
rates consistent  with fiscal  2007, advertising  revenue would  have
increased by  6%  with  increases  across  most  territories.   Other
channel and online revenue was down at ¤3.9 million.

Our programme distribution revenue was  ¤15.9 million, a decrease  of
24%.  The decrease is primarily due  to the delay of programme  sales
in Israel until fiscal  2009, the timing  of programme deliveries  to
broadcasters  and  lower  sales  of  programming  with   non-European
rights.  Revenue was also impacted  by the strengthening of the  euro
versus the  US  dollar as  distribution  sales are  predominantly  US
dollar-based.

Consumer products  revenue  decreased  25%  to  ¤16.8  million.   The
decrease was principally a result  of the fiscal 2007 A.T.O.M.  Alpha
Teens on Machines master  toy license not  being repeated this  year,
increased competition in the market with respect to the Power Rangers
property, and the change in recording DCP Power Rangers revenue on  a
net  basis[6].   This   was  partially  offset   by  increased   home
entertainment revenue,  primarily  for  the  Marvel  properties,  and
growth of JCP merchandising revenue.

Marketing, Selling and Distribution Costs

Marketing, selling  and distribution  costs  decreased 21%  to  ¤39.6
million.  This was primarily driven  by the appreciation of the  euro
against  the  pound  sterling  and  the  US  dollar,  a  decrease  in
participations,  and  savings  from  the  licensing  of  our  channel
operations  in  France.   The  decrease  in  participations   largely
resulted from a  one-time reduction of  the liability, following  the
revision  of  estimates  of  the  ultimate  performance  of   certain
properties.  There were also savings  in production costs, driven  by
the delay of programming in Israel,  and lower costs from the  change
in accounting for  the DCP Power  Rangers arrangements (resulting  in
revenue being recorded net and with no commission expense)[6].

General and Administrative Costs

General and  administrative costs  decreased  ¤0.7 million  to  ¤47.8
million principally due to the strengthening of the euro against  the
pound sterling and the US dollar,  and savings from the licensing  of
our channel  operations in  France.  Other  cost reductions  included
lower bad debt  expense and professional  fees.  These lower  overall
costs were partially offset  by increases from the  end of an  office
rental rebate period, French employee termination costs, an  increase
in  share  based  compensation  and  costs  related  to  our  channel
distribution deal with DAET.

EBITDA

EBITDA decreased 27%  to ¤50.8 million.   Channels and online  EBITDA
was ¤39.6 million, a decrease of  22%.  This is primarily due to  the
decrease in subscription  revenue and increased  office rental  costs
due to the end of the rebate  period, offset by the reduction in  bad
debt expense and savings in production costs.

Programme distribution EBITDA decreased 14%  to ¤11.2 million due  to
the timing of programme deliveries to broadcasters, the net impact of
the delay in programme  sales within Israel,  offset by the  one-time
adjustment to the participation liability.

Consumer products EBITDA  was down 31% to ¤8.9 million as a result of
the fiscal 2007 A.T.O.M. Alpha  Teens on Machines master toy  license
not being  repeated in  fiscal 2008  and increased  competition  with
respect to our Power Rangers property, offset by decreased costs from
participation fees.

Shared costs  not allocated  to segments  increased to  ¤8.9  million
principally as a  result of one-time  employee termination costs  for
our French channel operations, an increase in office rental costs due
to the  end of  a rental  rebate period,  and increased  share  based
compensation charges as described above.

Amortisation and Impairment of Programme Rights

Amortisation and impairment of programme  rights (defined as cost  of
sales in  the  income  statement)  decreased  15%  to  ¤36.8  million
primarily due to the appreciation of  the euro versus the US  dollar,
as the  programme library  is predominantly  US dollar  based, and  a
decline in  the  amortisation  related to  titles  with  non-European
rights.  This was  partially offset  by an  impairment for  programme
rights on a limited number  of our titles as  a result of changes  in
our future  programming  schedules.  Movements  of  foreign  exchange
rates contributed  ¤4.4 million  to the  savings and,  excluding  the
exchange rate  movements, amortisation  and impairment  on  programme
rights would have declined by 5%.

Finance Income (net)

Finance income (net) decreased ¤1.0 million to ¤4.9 million primarily
due to a  decrease in interest  rates and a  decrease in the  average
cash balances held by the company due to the ¤50 million distribution
to shareholders made during fiscal 2007.

Gain on Foreign Exchange

The gain  on foreign  exchange  recognised during  the year  of  ¤8.0
million primarily relates to gains on intercompany transactions which
reflect the  exchange  risk  of doing  business  with  foreign  group
members where the functional currency is not in euros[7].  Commencing
April 2008, foreign exchange gains  or losses in relation to  certain
intercompany transactions, that are  formally deemed to be  permanent
in nature, are no  longer recognised in the  statement of income  but
directly recognised in equity.   If this formal  process had been  in
place at October  1, 2006, the  gain on foreign  exchange would  have
been ¤3.4  million  and  ¤0.8  million  for  fiscal  2007  and  2008,
respectively.

Profit Before Tax Expense

Profit before tax  and minority  interest decreased by  36% to  ¤28.2
million, resulting  from  decreased  EBITDA  as  discussed  above,  a
reduction in gains on foreign exchange and a decrease in net  finance
income.

Tax Expense

The effective tax rate  for the period was  24% compared with 14%  in
the  prior  period.    This  higher  rate   primarily  reflects   the
differential  pattern   of   profit  distribution   among   the   tax
jurisdictions in which  the Group operates,  changes to the  forecast
utilisation of  deferred  tax  losses,  changes  to  tax  rates  that
impacted the carrying  value of  certain deferred tax  assets and  an
adjustment in the  previous fiscal  year that  did not  recur in  the
current period.

Minority Interest[8]

Net profit  attributable  to  minority  interest  increased  by  ¤0.6
million to ¤1.2 million resulting from higher profits from the Polish
channel.

Earnings per Share

Basic and diluted  earnings per  share decreased to  23.6 cents  from
43.9 cents in the prior period.

Cash Flow

Cash and  cash  equivalents  increased by  ¤33.1  million  to  ¤132.6
million from September 30, 2007.  Net cash generated from  operations
increased by ¤11.1 million to ¤37.5 million primarily as a result  of
the fiscal 2007 use of working capital not being repeated,  partially
offset by lower net profit.

OUTLOOK

At present,  visibility  on  fiscal  2009  is  limited,  due  to  the
uncertainty of  the economic  outlook. However,  we currently  expect
that revenue in  2009 will  be broadly  flat with  the current  year,
assuming current exchange  rates. The  new structure  of our  channel
operations and  carriage  agreement in  France[9]  and  the  possible
effect of  general economic  conditions  on advertising  revenue  are
expected to offset growth in other areas of the business.

We  currently   expect  that   costs   in  fiscal   2009,   excluding
amortisation, will approach the fiscal  2007 level.  Costs in  fiscal
2008 benefited from  cost control  efforts, as  well as  a number  of
items which we do not expect to be repeated in 2009, for example  the
reduction in the provision for participations.  Alongside the  impact
from these, we are  expecting cost increases  in 2009 from  strategic
initiatives and from  costs directly linked  to revenue increases  in
specific areas.


FINANCIAL CALENDAR

We will be  announcing our interim  results for the  6 months  ending
March 31,  2009 on  May 14,  2009.   We will  be holding  our  Annual
General Meeting (AGM) on January  29, 2009.  Further details will  be
published on our website, www.jetixeurope.com.  Please note that this
is a change to the previously advised AGM date.



                          Jetix Europe N.V.
                  Consolidated Statements of Income
    for the Years Ended September 30, 2008 and September 30, 2007

                                  Year ended    Year ended   % Change
In  euro' 000                    September 30, September 30,
Unaudited                            2008          2007

Revenue                                136,917       166,444  (18)%
Cost of sales                         (36,770)      (43,441)   15%
Gross Profit                           100,147       123,003  (19)%
Marketing, selling and                (39,622)      (50,025)   21%
distribution costs
General and administrative costs      (47,791)      (48,526)    2%
Operating profit                        12,734        24,452  (48)%

Analysed as:
EBITDA                                  50,756        69,392  (27)%
Amortisation and impairment of        (36,770)      (43,441)   15%
programme rights
Depreciation of property and             (434)         (659)   34%
equipment
Amortisation of other                    (818)         (840)    3%
intangibles
                                        12,734        24,452  (48)%

Finance income                          11,658        11,752   (1)%
Finance expense                        (6,793)       (5,898)  (15)%
Gain on foreign exchange                 8,033        10,770  (25)%
Share of net profits from joint          2,526         2,755   (8)%
ventures
Profit before tax expense               28,158        43,831  (36)%
Tax expense                            (6,866)       (5,987)  (15)%
Net profit                              21,292        37,844  (44)%
Attributable to minority               (1,172)         (537)  (118)%
interest
Net profit attributable to              20,120        37,307  (46%)
shareholders

Earnings per share for net
profit attributable to the
equity shareholders of the Group
during the period
(expressed in euro cents per
share)
Basic                                     23.6          43.9
Diluted                                   23.6          43.9




The notes on pages 17 to 19 are an integral part of the  consolidated
financial information.






                          Jetix Europe N.V.
    Consolidated Balance Sheets as at September 30, 2008 and 2007
In euro' 000                    September 30, 2008 September 30, 2007
Unaudited

ASSETS
Non-current assets
Intangible assets
    Programme rights                        66,024             81,647
    Goodwill                                 9,834              9,834
    Other                                    1,593              1,896
Total intangible assets                     77,451             93,377

Property and equipment, net                    985              1,022
Investment in joint ventures                   849                649
Deferred tax assets                          5,572              7,589
Total non-current assets                    84,857            102,637

Current assets
Trade and other receivables,                44,179             47,053
net
Related party receivables                    5,998             11,278
Cash and cash equivalents                  132,567             99,488
                                           182,744            157,819
Total assets                               267,601            260,456

EQUITY
Capital and reserves
attributable to the Group's
equity
Share capital                               21,310             21,303
Share premium                              409,231            408,948
Other reserves                            (39,490)           (27,906)
Retained losses                          (176,831)          (196,951)
                                           214,220            205,394
Minority interest                            1,724              1,542
Total equity                               215,944            206,936

LIABILITIES
Current liabilities
Trade and other payables                    44,920             44,913
Current income tax liabilities               3,262              3,159
Related party payables                       2,236              3,227
Provisions for other                         1,239              2,221
liabilities
                                            51,657             53,520

Total equity and liabilities               267,601            260,456




The notes on pages 17 to 19 are an integral part of the  consolidated
financial information.



                                    Jetix Europe N.V.
             Consolidated Statement of Changes in Equity for the Years Ended
                        September 30, 2008 and September 30, 2007


In euro' 000 Share   Share    Currency    Other        Share   Retained  Minority Total
Unaudited    capital premium  translation Reserves[10] option  (losses)/ interest equity
                              adjustment               reserve earnings

Balance at    21,199  456,799    (11,383)            -   2,875 (234,258)    1,627  236,859
September
30, 2006
Currency           -        -    (19,786)            -       -         -     (26) (19,812)
translation
differences
Net profit         -        -    (19,786)            -       -         -     (26) (19,812)
recognised
directly in
equity
Profit for         -        -           -            -       -    37,307      537   37,844
the period
Total              -        -    (19,786)            -       -    37,307      511   18,032
recognised
income for
period

Distribution       - (49,930)           -            -       -         -        - (49,930)
of share
premium

Employee
share option
scheme
Value of           -        -           -          429     210         -        -      639
employee
services
Proceeds         104    2,079           -            -       -         -        -    2,183
from shares
issued
Change in          -        -           -            -   (251)         -        -    (251)
settlement
from equity
to cash for
restricted
shares
Total            104    2,079           -          429    (41)         -        -    2,571
employee
share option
scheme
Redemption         -        -           -            -       -         -    (596)    (596)
of shares

Balance at    21,303  408,948    (31,169)          429   2,834 (196,951)    1,542  206,936
September
30, 2007

Currency           -        -    (12,275)            -       -         -    (232) (12,507)
translation
differences
Net profit         -        -    (12,275)            -       -         -    (232) (12,507)
recognised
directly in
equity
Profit for         -        -           -            -       -    20,120    1,172   21,292
the period
Total              -        -    (12,275)            -       -    20,120      940    8,785
recognised
income for
period

Distribution
of share
premium

Employee
share option
scheme
Value of           -        -           -          668      23         -        -      691
employee
services
Proceeds           7      283           -            -       -         -        -      290
from shares
issued
Total              7      283           -          668      23         -        -      981
employee
share option
scheme

Redemption         -        -           -            -       -         -    (758)    (758)
of shares

Balance at    21,310  409,231    (43,444)        1,097   2,857 (176,831)    1,724  215,944
September
30, 2008





The notes on pages 17 to 19 are an integral part of the  consolidated
financial information.




                          Jetix Europe N.V.

              Consolidated Cash Flow Statements for the
               Years Ended September 30, 2008 and 2007

In euro' 000                        Notes  Year ended    Year ended
Unaudited                                 September 30, September 30,
                                              2008          2007

Cash flows from operating
activities
Net profit                                       21,292        37,844
   Depreciation                                     434           659
   Amortisation                                  36,056        44,281
   Impairment charge                              1,532             -
   Loss on disposal of assets                         -            75
   Share based compensation charge                1,756         1,177
   Equity in income of joint                    (1,063)         (834)
   ventures
   Interest income                             (11,658)      (11,752)
   Interest expense                               6,793         5,898
   (Decrease)/increase in provision               (688)         1,009
   for bad and doubtful debts
   Decrease in other liabilities                      -       (1,394)
   Deferred and current taxation                  6,866         5,987
   Decrease in amounts due from                       -           985
   related parties
   Decrease in provisions for other               (898)       (1,381)
   liabilities
   Adjustment for non-cash movement             (7,751)      (11,210)
   in intra-group balances
Operating cash flows before change               52,671        71,344
in working capital

Change in working capital             3           5,925      (21,218)

Cash generated from operations                   58,596        50,126

         Purchase of programme                 (21,878)      (22,804)
         rights
         Dividends received from                    863           510
         joint ventures
         Interest received                       11,406        11,250
         Interest paid                          (6,793)       (5,898)
         Income tax paid                        (4,743)       (6,830)

Net cash  generated from operating               37,451        26,354
activities

Cash flows from investing
activities
Purchases of property and equipment               (361)         (301)
Purchases of software                             (510)          (40)
Net cash from investing activities                (871)         (341)

Cash flows from financing
activities
Proceeds from exercise of employee                  290         2,183
share options
Redemption of shares to minority                  (758)         (596)
interests
Distribution of share premium                         -      (49,930)

Net cash from financing activities                (468)      (48,343)

Increase/(decrease) in cash and                  36,112      (22,330)
cash equivalents
Cash and cash equivalents at the                 99,488       127,126
beginning of the year
Effects of exchange rate changes on             (3,033)       (5,308)
cash and cash equivalents
Cash and cash equivalents at the
end of the year                                 132,567        99,488






The notes on pages 17 to 19 are an integral part of the consolidated
financial information.




                          Jetix Europe N.V.
            Operating Results by Business Segment for the
               Years Ended September 30, 2008 and 2007
                                  Year ended    Year ended   % Change
In euro' 000                     September 30, September 30,
Unaudited                            2008          2007

BUSINESS SEGMENT

Segment Revenue
Channels and online                    104,211       122,897  (15)%
Programme distribution                  15,917        21,068  (24)%
Consumer products                       16,789        22,479  (25)%
Total revenue                          136,917       166,444  (18)%


EBITDA

Channels and online                     39,590        51,054  (22)%
Programme distribution                  11,180        13,040  (14)%
Consumer products                        8,861        12,772  (31)%
Shared costs not allocated to          (8,875)       (7,474)  (19)%
segments
Total EBITDA                            50,756        69,392  (27)%

Segment Result

Channels and online                      9,504        19,664  (52)%
Programme distribution                   7,138         5,760   24%
Consumer products                        4,694         6,911  (32)%
Shared costs not allocated to          (8,602)       (7,883)   (9)%
segments
      Operating profit                  12,734        24,452  (48)%








                          Jetix Europe N.V.

           Operating Results by Geographic Segment for the
               Years Ended September 30, 2008 and 2007

                                  Year ended    Year ended   % Change
In euro' 000                     September 30, September 30,
Unaudited                            2008          2007

GEOGRAPHIC SEGMENT

Revenue


Italy                                   28,438        25,381   12%
United Kingdom and Ireland              26,388        43,952  (40)%
Central and Eastern Europe              19,374        18,359    6%
Benelux                                 15,695        18,187  (14)%
France                                  11,577        18,561  (38)%
Germany                                 10,813        10,931   (1)%
Poland                                   8,417         8,565   (2)%
Nordic Region                            5,752         5,414    6%
Middle East                              5,287         8,739  (40)%
Spain and Portugal                       4,001         4,749  (16)%
USA                                        700         1,171  (40)%
Other                                      475         2,435  (80)%
Total revenue                          136,917       166,444  (18)%


EBITDA

Italy                                   13,258        10,620   25%
United Kingdom and Ireland              13,301        27,312  (51)%
Central and Eastern Europe               8,608         6,614   30%
Benelux                                  3,530         5,192  (32)%
France                                   5,500         8,661  (36)%
Germany                                  4,073         4,300   (5)%
Poland                                   5,410         4,794   13%
Nordic Region                            1,501           783   92%
Middle East                              2,387         4,568  (48)%
Spain and Portugal                       1,281         1,848  (31)%
USA                                        520           725  (28)%
Other                                      262         1,449  (82)%
Shared costs not allocated to          (8,875)       (7,474)  (19)%
segments
EBITDA                                  50,756        69,392  (27)%

Less: amortisation, impairment          38,022        44,940   15%
and depreciation

Operating profit                        12,734        24,452  (48)%






Notes to the consolidated financial information
Unaudited

1       Basis of preparation

The consolidated financial information of the Group has been prepared
using accounting policies which are consistent with the policies used
in preparing  the consolidated  financial statements  for year  ended
September 30, 2007.

The consolidated financial  information does not  include all of  the
financial statement disclosures included  in the annual  consolidated
financial  statement  prepared   in  accordance  with   International
Financial Reporting Standards (IFRS) and therefore should be read  in
conjunction  with  the  most  recent  annual  consolidated  financial
statements.

The preparation  of financial  information requires  that  management
make estimates in reporting amounts of certain revenues and  expenses
for each financial year and certain assets and liabilities at the end
of each financial year.  On an ongoing basis, management reviews  its
estimates, including  those related  to revenue,  accruals for  costs
incurred but not billed from vendors, bad debts, potential impairment
and useful  lives  of assets,  income  taxes, certain  other  accrued
liabilities and share-based compensation.  Actual results may  differ
from these estimates.

The consolidated financial information presented in this document  is
for the  twelve months  ended  September 30,  2008.  This  period  is
compared to the corresponding twelve months ended September 30, 2007,
unless otherwise stated.

Weighted average exchange  rates used  in the  translation of  income
statement accounts were US dollar - ¤1 = $1.504 (2007 - ¤1 =  $1.331)
and pound sterling - ¤1 = £0.763 (2007 - ¤1 = £0.676). Exchange rates
used to translate assets  and liabilities at  the balance sheet  date
were US dollar - ¤1 = $1.445  (September 30, 2007 - ¤1 = $1.415)  and
pound sterling ¤1 = £0.799 (September 30, 2007 - ¤1 = £0.698).

2             Share-based compensation

During  the  year  ended  September  30,  2008,  there  were   75,297
restricted shares  for  Jetix  Europe N.V.  issued.   The  restricted
shares vest in two tranches at January 9, 2010 and January 9,  2012.
There  are  no  performance  related  criteria  associated  with  the
restricted shares.   During  the  period there  were  27,107  options
exercised.  There  were 18,808  restricted shares  and 8,194  options
forfeited.

The  total  share-based  compensation  expense  for  the  year  ended
September 30, 2008 is ¤1.8 million  (¤1.2 million for the year  ended
September 30, 2007), of  which ¤0.7 million  related to Disney  share
options and  restricted  shares  (¤0.4 million  for  the  year  ended
September 30, 2007).

Notes to the consolidated financial information
Unaudited

3       Change in working capital


In euro' 000                               Year ended    Year ended
Unaudited                                 September 30, September 30,
                                              2008          2007
Change in working capital

       Decrease/(increase) in trade and           2,240         (214)
other receivables
       Decrease/(increase) in amounts due         5,353       (2,318)
from related parties
       Decrease in trade and other                (804)       (9,697)
payables
       Decrease in amounts due to related         (864)       (8,989)
parties
                                                  5,925      (21,218)


The Consolidated  Statement of  Cash Flows  reflects the  cash  flows
arising from the activities of  Group companies as measured in  their
own currencies,  translated  to euros  at  monthly average  rates  of
exchange.  Therefore,  the cash  flows recorded  in the  Consolidated
Statement  of  Cash  Flows  exclude  both  the  currency  translation
differences which arise  as a  result of translating  the assets  and
liabilities of non-euro Group companies to euro at year-end rates  of
exchange, with  the  exception of  those  arising on  cash  and  cash
equivalents.  These currency  translation differences must  therefore
be added to  the cash  flow movements at  average rates  in order  to
arrive at the movements derived from the Consolidated Balance Sheet.

4       Earnings per Share

Basic  earnings  per  share  (EPS)  is  net  profit  attributable  to
shareholders  divided  by  the  weighted  average  number  of  shares
outstanding.  Diluted EPS reflects the potential dilution that  would
occur if dilutive share options and non-vested restricted shares were
exercised.  A reconciliation of the weighted average number of shares
is as follows:


(000's of shares)                   Year ended         Year ended
Unaudited                       September 30, 2008 September 30, 2007
Weighted average number of
common shares used in                       85,227             84,899
calculated basic EPS

Effect of dilutive securities
- Share options                                  4                 14
- Unvested restricted shares                    96                 36
Weighted average number of
common shares used in                       85,327             84,949
calculating diluted EPS


Notes to the consolidated financial information
Unaudited

5          Analysis of effects of changes in exchange rates

The following table shows the operating results by business segment
at exchange rates consistent with those in fiscal 2007[11].




              Year ended   Year ended     Year       Change  % Change
In euro' 000  September    September      ended        at       at
Unaudited      30, 2008     30, 2008    September   constant constant
               at 2008      at 2007     30, 2007    exchange exchange
               exchange     exchange                 rates     rate
                rates        rates
BUSINESS
SEGMENT

Segment
Revenue
Channels and     104,211      110,852     122,897   (12,045)    (10)%
online
Programme         15,917       16,564      21,068    (4,504)    (21)%
distribution
Consumer          16,789       17,454      22,479    (5,025)    (22)%
products
Total revenue    136,917      144,870     166,444   (21,574)    (13)%

EBITDA
Channels and      39,590       41,887      51,054    (9,167)    (18)%
online
Programme         11,180       11,325      13,040    (1,715)    (13)%
distribution
Consumer           8,861        8,883      12,772    (3,889)    (30)%
products
Shared costs     (8,875)      (9,944)     (7,474)    (2,470)    (33)%
not allocated
to segments
Total EBITDA      50,756       52,151      69,392   (17,241)    (25)%




                       ABOUT JETIX EUROPE N.V.


Jetix  Europe  N.V.  is  one  of  Europe's  leading  integrated  kids
entertainment companies with localised television channels, programme
distribution and consumer products businesses.  Jetix Europe N.V.  is
listed on the Euronext Amsterdam Stock Exchange and is majority owned
(approximately 73%) by The Walt Disney Company.  In 2004 Jetix Europe
and  The  Walt   Disney  Company  launched   Jetix,  a  global   kids
entertainment brand  which brings  a  unique combination  of  action,
adventure and cheeky humour to kids aged 6-14 worldwide.

Channels
Jetix Europe broadcasts 15 channels to 58 countries across Europe and
the Middle East,  reaching more  than 52  million households.   These
channels are broadcast in 19 languages, with content tailored to suit
each market.  The 13 Jetix branded channels entertain kids ages 6-14,
whilst Jetix  Play targets  a  younger audience,  and in  Italy,  GXT
targets teenage  boys.  Jetix  Europe also  runs localised  websites,
supporting all  of  Jetix Europe's  activities  by enabling  kids  to
interact with  their  favourite characters  through  video-on-demand,
games and exclusive content.

Programme Distribution
Jetix Europe owns one of the largest libraries of kids programming in
the world  with approximately  6,000 episodes.   Distributed to  more
than 110    terrestrial, cable  and  satellite channels  in  over  50
markets across Europe and the Middle East, the library includes major
global  programming  franchises  such  as  Power  Rangers,  Sonic  X,
Spiderman, X-Men  and Yin  Yang Yo!   Jetix Europe  also has  branded
blocks that appear on terrestrial TV channels across Europe, reaching
over 100 million households.  The Jetix Europe library is serviced by
Disney-ABC-ESPN Television.

Consumer Products
Jetix  Consumer  Products  International  (JCP)  is  Jetix   Europe's
consumer  products   and  home   entertainment  business.   JCP   has
representation in  over  50  countries,  including  fully  integrated
offices in  the UK,  France, Germany,  Israel, Italy,  Spain and  the
Netherlands, as  well as  third party  agents in  other key  markets.
JCP's properties  are  sourced  from the  Jetix  Europe  library  and
include Sonic  X and    the Jetix  brand,   as  well as  third  party
representation for properties such as Pucca and Totally Spies.

FORWARD-LOOKING STATEMENTS

This  press  release  contains  forward-looking  statements.    These
statements may be  identified by  words such  as "expect",  "should",
"could", "shall"  and  similar  expressions.   These  statements  are
subject to risks  and uncertainties,  and actual  results and  events
could  differ   materially  from   what   is  contemplated   by   the
forward-looking statement.  Factors which could cause actual  results
to differ from these forward-looking statements may include,  without
limitation, general economic conditions, competition for viewers  and
ratings, changes to our channel distribution deals, the popularity of
our content  and  characters, technology  issues  or changes  in  the
distribution of  television, regulatory  change,  the timing  of  new
programme  deliveries   and  foreign   exchange  fluctuations.    The
foregoing list of  factors should  not be  construed as  exhaustive.
Jetix Europe  disclaims  any intention  or  obligation to  update  or
revise these forward-looking statements, whether  as a result of  new
information, future events or otherwise.


[1] All comparisons and percentage changes are stated versus the year
ended September 30, 2007.
[2] Consistent with prior years, EBITDA is operating profit stated
before programme amortisation, impairment and depreciation.
[3] On June 1, 2008, Jetix Europe licensed its French channel
operations to The Walt Disney Company France.  From that date
forward, Jetix Europe is paid a license fee, which is recorded as
other revenue in the Channels and Online segment.  During the term of
the contract Jetix will no longer record gross revenue (subscription
or advertising) or marketing, selling, distribution or general and
administrative costs for channel operations in France.
[4] In certain markets revenues and costs are denominated in either
pound sterling or US dollar, including the UK, CEE, Poland and
Israel.
[5] On June 1, 2008, Jetix Europe licensed its French channel
operations to The Walt Disney Company France.  From that date
forward, Jetix Europe is paid a license fee, which is recorded as
other revenue in the Channels and Online segment.  During the term of
the contract Jetix will no longer record gross revenue (subscription
or advertising) or marketing, selling, distribution or general and
administrative costs for channel operations in France.
[6] Reported revenue was impacted by a change in our Power Rangers
representation contract with DCP, which resulted in revenue being
recorded net of DCP's share of revenue.  Measured on a consistent
basis against the prior year, impact on revenues was ¤0.7 million.
Revenue had been recorded gross along with the related DCP
commissions in marketing, selling and distribution costs under the
previous arrangement.  This change was phased in during the first
half of fiscal 2007.
[7] Primarily the result of balances between group members
denominated in dollars.  The euro to US dollar year end rate has
increased from 1.415 to 1.445 in 2007 and 2008, respectively. The
euro to US dollar rate at March 31, 2008 was 1.580.
[8] Minority interest relates to a third party's 20% interest in
Jetix Poland Limited.
[9] On June 1, 2008, Jetix Europe licensed its French channel
operations to The Walt Disney Company France.  From that date
forward, Jetix Europe is paid a net license fee, which is recorded as
other revenue in the Channels and Online segment.  During the term of
the contract Jetix will no longer record gross revenue (subscription
or advertising) or marketing, selling, distribution or general and
administrative costs for channel operations in France.
[10] The other reserves represent a capital contribution by Jetix
Europe's parent company, The Walt Disney Company, for Disney stock
options issued to Jetix Europe employees
[11] A number of subsidiaries within the Group have a functional
currency that is not the euro.  To provide an approximation of the
underlying fiscal 2008 results excluding the impact of foreign
currency movements, the monthly results in the applicable functional
currency of these subsidiaries have been retranslated at an
equivalent rate that would have been applied in fiscal 2007.  Certain
transactions which are originated in a currency other than the euro
and the functional currency of the subsidiary have been separately
translated using the fiscal 2007 rate.

           Bergweg 50, 1217 SC Hilversum, The Netherlands.
           PO Box 901, 1200 AX Hilversum, The Netherlands.
     Official Seat: Rotterdam. Trade Register Number: 32076694.
                         www.jetixeurope.com


The report can be downloaded from the following link:


This announcement was originally distributed by Hugin. The issuer is 
solely responsible for the content of this announcement.




                                                                                                                                                                                              

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