Fox Kids Europe NV Financial Results - Year Ended May 31, 2000

Transcription

1 Fox Kids Europe NV Financial Results - Year Ended May 31, 2000 September 20th, 2000 Slide 1

2 Slide 2 Operating Review Ynon Kreiz Chairman & CEO

3 Slide 3 Highlights! Strong financial performance! Reached profitability! Completed pan European channel platform! Strengthened programme library! Integrated consumer product operations! Established online & interactive division

4 Slide 4 Financial Summary! Total revenues up 27% to $100.4 million! EBITDA up 41% to $36.7 million! Reached profitability with operating income of $5.1 million and net income of $273,000! All divisions EBITDA positive except new online & interactive

5 Fastest Growing Pan European Network Slide 5

6 Channel Expansion Slide 6! Broadcasting in 38 countries in 12 languages! 32% increase in channel subscribers; currently reaching more than 21 million households! Ratings success! Three major markets added! Currently have more than 350 distribution agreements with cable / satellite operators

7 Subscriber Growth Slide 7 Millions CAGR = 78% Year Ended: May 31, Aug DTH Cable

8 Slide 8 Programme Library! 263 new episodes added! 383 more episodes in production! Top titles include:! Digimon! Diabolik! Power Rangers - Lost Galaxy! Kids from Room 402! Flint the Time Detective! Power Rangers - Lightspeed Rescue

9 Programme Distribution in 36 Markets Slide 9

10 Programme Distribution Slide 10! One of the largest distributors of children s programming in Europe and the Middle East! Forging alliances with strong broadcast partners! Output agreement concluded with Mediatrade in Italy! Increase awareness through branded blocks on terrestrial television! Programmes distributed to more than 110 broadcasters in 36 countries in Europe and the Middle East

11 Consumer Products In 24 Markets Slide 11

12 Slide 12 Consumer Products! Seven local operations across Europe:! Expansion in UK, Germany, France and Italy! Launches in Spain, Nordic Region and Benelux! Five new Managing Directors! New central infrastructure! Retail alliances with H&M, Burger King, Wal-Mart, El Corte Ingles! 32 active properties

13 Internet Propositions in 10 Languages Slide 13

14 Slide 14 Online & Interactive! Objective is establish position as the leading children s online community! Currently have localised websites in 10 languages! 5 million page views per month! Recruited strong management with substantial industry experience! Launched a WAP service on MVIVA! Development of a virtual wallet and online shopping mall

15 Financial Review Slide 15

16 Slide 16 Financial Review Martin Weigold Chief Financial Officer

17 Slide 17 Highlights (US$mil) Year ended 31 May Change Total Revenues % EBITDA * % Operating Income / (Loss) 5.1 (14.6) +135% Net Income (Loss) 0.3 (19.8) +101% EPS (cents) 0.4 (54.9) +101% Operational Cash Flow (15.6) (68.6) +71% * before a non-recurring charge of $1.8 million

18 Revenue Composition Slide 18 Category Consumer Products 6% Country Spain & Portugal 10% Other 3% Channels 40% Programme Distribution 54% Poland 5% Nordic Region 4% Benelux 8% Italy 8% France 17% UK 23% Germany 22% Total T t lrevenues for Year Ended May 31, 2000: $100.4mil

19 Channels Slide 19 Financial Overview ($mil) Rapid Expansion 39.8! Revenues up 66% to $39.8mil FY99 FY00 FY00adj! Advertising revenues up 109% to $9.8mil! Subscribers up more than 32% to 19.9mil (May 2000)! Subscription revenues up 56% Revenues -8.5 EBITDA! Still in development phase but EBITDA positive

20 Slide 20 Channels Revenue Composition Revenue Composition Cable 23% DTH 52% Advertising 25% Total channel revenues: $39.8 mil

21 Subscriber Growth By Channel Slide 21 Italy Spain May May 00 Poland Nordic Region France Central Europe UK & Ireland Netherlands Subscribers (millions) Subscriber growth in all markets

22 Channel Advertising Revenue Slide 22 FY 1999 FY 2000 Netherlands 37% Spain 2% Netherlands 39% Spain 3% UK 32% UK 46% France 12% France 18% Poland 2% Scandinavia 1% CEE 3% Poland 1% Scandinavia 4% Advertising Revenue 1999 $4.8 mil Advertising Revenue 2000 $9.8 mil

23 Slide 23 Programme Distribution Financial Overview ($mil) Continued Growth FY99 FY00! Revenues up 15% to $54.1mil! EBITDA up 19% to $40.8mil ! Operating profit of $13.5mil vs. a loss of $5.1mil in FY99! Growth in nearly all geographical markets! 5,271 episodes under license! Reduction in amortisation from previous year Revenues EBITDA

24 Financial Review Consumer Products Slide 24 Financial Overview ($mil) Poised for Growth FY 99 FY 00! Revenues down to $6.5mil! EBITDA down to $2.2mil! Start-up costs of new offices 4.3! 6.5% of total revenues 2.2! Long-range target 10-20% of revenues Revenues EBITDA

25 Slide 25 Online & Interactive! Internet cash expenditure of $2.2mil ($250k for H1 2000)! Pan-European rollout and launch of second generation website requires expenditure of $10 - $15mil for FY01! Significant savings from:! Ownership of content! TV promotion on Fox Kids channels! Access to FFWW technology and applications

26 Significant Improvement in Operating Cashflow Slide 26 (US$mil) Year ended 31 May Operating Cashflow (excl. prog) Programming Produced or Acquired (48.6) (80.5) Operating Cashflow (15.6) (68.6) Investment in Joint Ventures (1.9) (4.6) Capital Expenditure (1.7) (1.0) Financing Activities Net Change in Cash pre FX 52.5 (8.5)

27 Slide 27 Summary With 12 offices and established businesses in all major markets, we now have the critical mass of a fully localised pan-european children s entertainment company and are positioned for more growth in the coming years.

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