Achievements in 2006
- Strong financial results
- Sky distribution renewed
- Continued development of Jetix alliance
- Growth in consumer products
Priorities for 2007
- Continue content investment
- Implement digital distribution strategy
- Conclude key distribution deals
I am very pleased to announce strong full year results for 2006. Revenue has increased by 12% and net profit is up to €23.4 million. The figures demonstrate that our clear focus on long–term strategic objectives is already enhancing performance.
The Company has three core strategic assets: great content‚ our alliance with The Walt Disney Company and our brand. Our long–term strategy is simple. We aim to grow the business and enhance its profitability by maximising the value of each of these assets.
Kids entertainment is an exhilarating area to be involved in. It is also one of the most demanding markets in the world.
Content is central to all of our operations. There are no guarantees; we fully understand that today’s hit product may be out of favour next year. Our primary challenge is always to develop content that satisfies kids’ high expectations and caters to their rapidly changing tastes.
The people who consume our products are content experts. Kids are passionately committed to the characters they follow; they understand them intimately. As every parent knows‚ they will not be satisfied with sub–standard products.
We have taken delivery of a strong slate of programming this year. Our epic co–production‚ Ōban Star–Racers‚ is now airing on our network and on European free–to–air channels. We have commissioned a second Pucca series in response to consumer demand.
Power Rangers is achieving strong free–to–air television sales and remains an exceptional consumer products property. A.T.O.M. Alpha Teens on Machines and Sonic X continue to impress in the consumer products space.
Currently‚ TV is the dominant medium for transmission‚ but the media market is evolving. And we have to be ready‚ because kids are early adopters of technology.
I see it with my own children. My youngest son is eight. He wasn’t even born when digital TV first came to our screens. Technology doesn’t constrain him. He is equally at home on the internet‚ with a gaming console‚ mobile phone or DVD. To him‚ these are just different platforms for accessing content.
It illustrates another important challenge‚ which the business is addressing. We need to get our content to our audiences‚ whenever and wherever they want it.
During the year‚ we have continued to secure our TV channel distribution network‚ most notably through the renewal of our Sky deal in the UK‚ which we announced in our interim results.
Alongside television content‚ we are developing multiple points of contact with our audience. We are exploiting new platforms for content delivery and adding to the mix of business models across our activities.
In the Netherlands‚ for example‚ we have launched an online video–on–demand service‚ funded by advertising. The site went live in June. It has already streamed over four million pieces of content‚ both programming and advertising.
We have increased our presence in both online and print media. We have experienced an upsurge in unique visitor numbers to our websites. The launch of a new magazine in Spain has enhanced our print presence.
Our consumer products division continues to perform well. The popularity of A.T.O.M. Alpha Teens on Machines has secured home entertainment deals in new markets. The continued success of Pucca is helping to develop new product categories. Power Rangers‚ represented by Disney Consumer Products‚ has again been a notable success‚ demonstrating strong year–on–year growth.
We are strengthening our alliance with Disney. During the year Disney’s Cable Networks Group in the US acquired several Jetix Europe productions/co–productions. Ōban Star–Racers‚ Pucca and A.T.O.M. Alpha Teens on Machines are all now airing in the Jetix–branded block on the Toon Disney channel.
We have extended our content creation partnership. Our jointly commissioned show‚ Yin Yang Yo!‚ aired in the US this year and was the top rated show on the Jetix block.
Kids want powerful content allied to a strong brand. Our brand is now in its second full year of operations across all activities. We are one of the leading European kids entertainment companies. We enjoy widespread recognition with our audiences and our commercial partners.
It is people that create momentum and I am constantly impressed by the energy and commitment I encounter here. I’d like to take this opportunity to thank all of the Jetix people for the great work they do. This year of achievement is a testament to their skills‚ dedication and drive. Together‚ we will achieve great things.
The kids entertainment market continues to change rapidly. Our powerful brand‚ large audience‚ geographical reach‚ mix of businesses and the alliance with our parent‚ The Walt Disney Company‚ allow us to look to the future with confidence.
Paul Taylor
Chief Executive Officer
December 2006