Last year we announced that we were creating a new programming brand with our parent, The Walt Disney Company (Disney), centred on our new name and brand – Jetix. This year has seen the completion in Europe and the Middle East of the first phase of this alliance, with the transition to our new name across all of our operations: television, on-line, new digital media and our ancillary activities. We are excited to see that Disney has also launched the Jetix brand in the U.S., Latin America and Asia, making us a key player in the development of a truly global kids’ phenomenon.

It is also good to see that our strategy of introducing the new brand gradually, through Jetix branded blocks which preceded the full channel renaming, has worked well. The new brand has become firmly established across Europe and the Middle East with our audiences, commercial partners, advertisers and distributors.

As I highlighted when I became CEO, content is at the heart of our company. This year we have significantly improved our production pipeline, with a focus on developing fewer, higher quality properties. Our content strategy is centred on ownership, either in partnership with our parent company or the best independent producers around the world, thus enabling our team to be heavily involved in the creative direction of each property early on in its development. This also more effectively sets us up to participate in the financial rewards of hit franchises.

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) in France has aired across our channels in Europe as well as the Disney owned Jetix networks and programme blocks in North 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).

The improved quality of our programming can also be seen in the first signs of recovery in our programme distribution division, where we work with Disney’s Buena Vista International Television, Europe’s leading kids programme distribution company. Despite receiving fewer new episodes this year we managed to grow our profits, and I am confident that as our programme pipeline continues to improve we will see further growth in this division.

Our consumer products division built on last year’s success with another excellent year. Power Rangers continues to exceed our expectations, supported by the strength of Disney Consumer Products, and our home entertainment business has delivered outstanding results following the internal reorganisation which focused resources on this area.

During the year we have also pushed through changes in our corporate management structure. I believe that all of this year’s changes, and the new focused management team, has given the company a new momentum. We are well positioned for the next stage in our development and I remain confident that we will continue to rise to the many challenges and opportunities of the fast changing media world in which we operate.

I would also like to take this opportunity to publicly thank each and every member of the team. You have all risen to the challenge this year, and without you, these results would not be possible – Thank You.

Paul Taylor
Chief Executive Officer
December 2005