Fox Kids Europe N.V. Financial Results - Six Months Ended December 31, 2001 March 21, 2002

Transcription

1 Fox Kids Europe N.V. Financial Results - Six Months Ended December 31, 2001 March 21, 2002 TM

2 Slide 2 Operating Review Ynon Kreiz Chairman & CEO

3 H1 02 Highlights Continued strong progress in a challenging climate Slide 3! Total revenues up 33% to $67.8 mil! EBITDA up 98% to $27.4 mil! Income before tax of $7.6mil! Advertising revenue up 43%! Operating cash flow positive! $41.9 mil cash; zero net debt! Fox Kids channels now reaching more than 30 mil HH s

4 Acquisition of FFWW by Disney FKE now part of the Disney group Slide 4! As of October 24, 2001, Disney acquired FFWW and thereby became FKE s majority shareholder (76%)! Transaction valued FFWW at $5.1 billion excluding the Fox Kids Network which was sold separately! Complementary strengths and assets! New ownership likely to bring substantial opportunities to both FKE and Disney

5 Channel Expansion Flagship operation still going strong! Slide 5! Now broadcasting in 55 countries in 17 languages via 12 feeds! Subscribers up 20% year-on-year; currently reaching more than 30 million households! New channel launched in Greece! Key distribution agreements extended in the UK, France and CEE! Significant new distribution concluded for our channels in the UK, Spain, Poland, CEE and Israel More than half of subscribers secured for years

6 Market Positioning (Europe & M.E.) Most widely distributed childrens channel Slide Current Market Potential (45.5) Pay TV Households (Million) Feb 28, 02 Dec 31, Disney * Nickelodeon Cartoon Network Fox Kids Source: Market research and FKE estimates *Available as a premium channel

7 Fox Kids Channel Growth Increasing in both cable and DTH Slide % 28.5 Million HH s CAGR = 63% Cable DTH As of May 31 As of Dec 31

8 Fox Kids Channels Growth Continued increase in every market Slide 8 Hungary / Czech Greece 0.3 H1 01 Israel Italy Poland Nordic Spain France Germany CEE UK & Ireland Netherlands Million HH s Local channel in every major market H1 02

9 Growing Programme Library One of the largest children s libraries in the world Slide 9! 145 new episodes and 1 family film added! 209 episodes in production! New titles include:! What s with Andy (23)! Mon Colle Knight (20)! Jason and the Heroes of Mount Olympus (16)! So Little Time (14)! Car Transformer Robots (13)! Further series include:! Power Rangers Timeforce (21)! Digimon (17)! Kids from Room 402 (10)! Japanimation office to be set up as new growth initiative

10 Programme Distribution Expect to leverage Disney s resources Slide 10! Disney s BVI-TV to service FKE s programme distribution business (May 1, 2002)! BVI-TV is a leading international distributor, handling all Disney s international television programming! Agreement with BVI-TV on substantially the same terms as Saban Int l Services! Reduction in the amount of new programming produced / acquired in the year! Revenue growth expected to be resumed in FY03 and beyond

11 Consumer Products Power Rangers and Digimon are strongest performers Slide 11! Key new third party properties signed including Medabots and Totally Spies! Representing Hasbro Consumer Products in Germany (Action Man, Monopoly, Trivial Pursuit)! Successful Wackel Elvis campaign expanded outside of Europe! Fox Kids branded music albums and magazine extended to Scandinavia

12 Online & Interactive The leading pan-european online community for children Slide 12! Localised websites in 17 languages! Over 55 million page views per month, up from 26 million at June 30, 2001! Over 1 million unique users per month! First Fox Kids Play game channels launched successfully

13 Slide 13 Financial Review Martin Weigold Chief Financial Officer

14 Financial Highlights Substantial progress on all key indicators Slide 14 6 months ending Dec 31, 2001 Dec 31, 2000 (US$mil) H1 02 H1 01 Change Total Revenues % EBITDA % Income Before Tax* x15 EPS* (cents) 7.9 (0.5) n/a Operational Cash Flow 0.5 (8.3) n/a * before cumulative effect of a change in accounting policy

15 Revenue Composition Channel group increasing its share Slide 15 Division Country Advertising 16% Channels 60% Consumer Products 7% Online & Interactive 2% Programme Distribution 31% Subscription and Other 44% Italy 6% Benelux 8% Spain & Portugal 6% France 17% Poland 6% UK 20% US 10% Nordic Region 3% Germany 12% CEE 7% Israel 5% Total revenues for six months ended December 31, 2001: $67.8 mil

16 Channel Profitability Grows EBITDA margin in target range ahead of schedule Slide 16 Financial Overview ($mil) Substantial Growth +38% 40.7 H1 01 H1 02! Revenues up 38% to $40.7 mil 29.4! EBITDA up 269% to $16.4 mil! EBITDA margin 40% +269% 16.4! Every channel now profitable 4.4 Revenues EBITDA

17 Channel Revenues Strong growth in all revenue streams Slide 17 Subscription Revenues ($mil) Advertising Revenues ($mil) Other Revenues ($mil) +37% % % H1 01 H1 02 Total channel revenues: $40.7 mil

18 Average Subscription Rate is Increasing Slide Trend line Average channel subscription rates (US$ cents per sub / month) 19.0 Sep Dec Mar Jun Sep Dec

19 Programme Distribution A strong first half performance Slide 19 Financial Overview ($mil) Overview +17% 21.1 H1 01 H1 02! Revenues up 17% to $21.1 mil! EBITDA up 15% to $15.1 mil % 15.1! SOP2 impact in period $1.1 mil 13.1! ARD co-production agreement in process of being replaced! Revenues for H2 02 expected to be lower than prior year comparative Revenues EBITDA

20 Consumer Products Continued focus on improving yields and margins Slide 20 Financial Overview ($mil) Solid Growth +38% 4.8 H1 01 H1 02! Revenues up 38% to $4.8 mil % ! EBITDA up from $1.5 mil to $2.6 mil! EBITDA margin up from 43% to 54% Revenues EBITDA! Continued focus on fewer, but bigger hit properties

21 Online & Interactive Successful game channel launches Slide 21 Financial Overview ($mil) Continued Expansion 1.2 H1 01 H1 02! Costs reduced from H2 01 to $3.9 mil (-20%) 0.3! Proportion of non-advertising revenues increasing! Remain on target to reach profitability in FY03 (1.6) (2.4) Revenues EBITDA

22 Slide 22 Summary We remain very positive about our growth prospects

23 TM