Jetix Europe witnessed a US$25.5 million decline in revenue, generating US$110.5 million in sales during the first six months ended March 31, 2008, the company announced today. Along with taking a US$5.9 million hit on currency exchange caused by the recent weak performance of the US greenback, Jetix suffered a significant downturn in subscription and distribution revenues.
Overall, sales for the period were down 19%, with channels and online revenue dropping 9% to roughly US$89.6 million and subscription revenues falling a sizeable 16% to US$52.1 million – the result of rate reductions in a some markets and the negative impact of the rising euro against the pound sterling and the US dollar.
Revs from program distribution dropped a whopping 44% to US$10 million primarily due to delivery timing and lower sales to Disney’s ABC Cable Network Group in the US. Jetix is expecting revenue to be weighted towards the second half of fiscal year 2008 for this division.
Similarly, consumer products sales took a 45% dip to US$10.6 million, with A.T.O.M. master toy licensee Hasbro not renewing the license after the net put a hault on producing a third series.
On a brighter note, subscriber numbers were up 4% to some 52.3 million households and ad revs increased by 9% to US$35.1 million. The largest growth markets were Italy, CEE and Poland. CEO Paul Taylor said that the downturn was expected and that excluding the currency exchange, the results were in-line with the company’s predictions.
Taylor added that the next six months will see the launch of two new co-pros (Jimmy Two Shoes, with Canada’s Breakthrough Entertainment, and Studio B’s Kid Vs. Kat) and renewed investment in the company’s online assets.