Sales and grants down at €13.3 million
Successful diversification into the young-adult segment Launch of
two highly promising new series with the support of European
channels Strengthening of the financial structure Confirmation of
current operating income close to breakeven in 2024, with the
ambition of a rapid return to profitable growth
Regulatory News:
Xilam Animation (Paris:XIL), Academy Award®-nominated
French animation studio, announces its revenues for the first half
of the 2024 financial year, drawn up on 30 June 2024.
Marc du Pontavice, Chairman and CEO of Xilam, comments: “Sales
for the first half of the year were reflecting the announced
contraction in orders from American streaming platforms in the Kids
animation segment. During this period, Xilam thus implemented its
plan of reducing costs and preserving cash. More importantly, it
has launched a strategy to strengthen its order book and return to
growth. We announced the launch of two highly promising new series,
Piggy Builders and Submarine Jim, and we are working on the
development of a new animated feature film. These announcements
testify the reactivity and creative strength of our studios, as
well as the renewed confidence broadcasters have in the appeal of
our content. We are entering a new cycle with confidence and the
ambition for a rapid return to profitable growth”
(‘000 euros)
30.06.2024 (1)
30.06.2023
% change
Sales of new productions and
developments
9,290
14,431
-36%
Catalogue sales
2,296
3,716
-38%
Total sales
11,585
18,147
-36%
Grants (2)
1,687
2,351
-28%
Total sales and grants
13,273
20,498
-35%
Other current operating revenue (including
ATC (3))
449
797
ns
Total operating revenue
13,722
21,295
-36%
(1) Unaudited data (2) Total grants (new productions and
catalogue) (3) Estimated Audiovisual Tax Credit (CIA)
Sales of new productions and developments down 36%, as
expected.
Sales of new productions and developments reached €9.3 million,
down 36% compared to the first half of 2023. This decline was
anticipated due to the reduction in orders from US streaming
platforms in the kids segment, announced in October 2023.
The proportion of servicing (work for hire) remains high at 71%
(compared to 83% in the first half of 2023), confirming the success
of the Group's diversification into the young-adult segment for
streamning platforms. The Group worked on five such productions
during the first half: two for Netflix, Twilight of the Gods an
epic action series for a young-adult audience, and The Seven Bears,
a 3D series for family (Folivari production); two for Disney+, The
Doomies, a horror comedy for teen viewers, and the conclusion of
the second season of Chip 'n Dale, for a family audience; and one
for France Télévisions, My Life in Versailles, also for a family
audience (Films Grand Huit production).
Proprietary productions accounted for 29% of sales, with three
productions: the fourth season of Zig & Sharko, the second
season of Lupin’s Tales and the first season of Buddybot an
eco-comedy for children aimed at France TV.
Catalogue sales at €2.3 million
Catalogue sales amounted to €2.3 million, down 38%. These sales
should be evaluated from an annual perspective, as the second half
of the year is traditionally much higher due to the concentration
of AVOD advertising sales in the final quarter. Significant
renewals of major catalogue franchises are also expected at the end
of the year.
Total sales, excluding grants, at €11.6 million
Total sales, excluding grants, amounted to €11.6m.
International sales accounted for 76% of that total, down
slightly on the 86% figure for the first half of 2023.
Digital streaming platforms accounted for 66% of sales, compared
with 75% in the first half of 2023. They were driven by new
productions and developments, while traditional linear channels
still make up the majority share in the catalogue.
Lastly, the first half confirmed the trend towards young-adult
series, which accounted for 43% of the total, compared with 41% in
the first half of 2023, and even 54% for new productions alone,
reflecting the Group's successful development in this segment.
Total operating income at €13.7 million
Grants amounted to €1.7m, giving total sales and grants of €13.3
million.
Other current operating revenue was €0.4m, bringing total
operating revenue to €13.7 million.
Implementation of the strategy to strengthen links with
European channels.
The Group launched the production of two new series during the
first half of the year. Financed on a proprietary model, these
projects bring together France Télévisions, ZDF, and the BBC for
Piggy Builders, a 3D pre-school series, and France Télévisions and
Super RTL for Submarine Jim, a comedy aimed at kids.
Following the great success of the acclaimed and Academy
Award®-nominated I Lost My Body a few years ago, the Group is
making progress on a new feature film project, Lucy Lost, which is
due to be announced in the second half of the year.
Finally, the Group is in active discussions with several
American commissioners regarding prestigious productions.
Rigorous cash management and adaptation of the fixed cost
structure.
As announced, the Group implemented cost-saving measures in the
first half of the year, mainly relating to property leases (by
grouping operations on three sites instead of five), marketing,
personnel and IT. The Group confirms that it will amount to around
€3m over a full year.
In January 2024, the Group carried out a capital increase of
€3.7m, strengthening its equity and increasing its liquidity by the
same amount. Financial debt at 30 June 2024 will therefore be
significantly lower than at 31 December 2023.
Very high visibility at the Annecy Festival
Xilam received a very enthusiastic welcome at the Annecy
Festival. Disney and Netflix showcased the young-adult series
produced by the Group, Doomies and Twilight of the Gods, with
spectacular marketing campaigns. The series My Life in Versailles
also won the prize for best television series. This visibility
strengthens Xilam's attractiveness to its clients and reinforces
its unique position in the premium animation market.
On this occasion, the CNC's annual study of the animation sector
was published, confirming the Group's position as France's leading
animation studio for the period 2018-2023.
The group is maintaining its forecast of a current operating
income close to breakeven for the full year 2024, with the ambition
of a rapid return to profitable growth
Calendar
Publication of 2024 first-half results: 30 September 2024 (after
market close)
About Xilam
A major player in animation, Xilam is an integrated studio
founded in 1999 that creates, produces and distributes original
programmes in more than 190 countries for both children and adult
audiences. Xilam content is broadcast on television, and is also
available on SVoD platforms including Netflix, Disney+, Amazon and
Universal+ and AVoD streaming platforms including YouTube and
Facebook. With its creativity and capacity for innovation
recognised worldwide, its unique expertise in CGI, as well as
editorial and commercial expertise at the cutting edge of its
industry, Xilam is positioned as a key player of the market. Each
year, Xilam builds real successes and capitalises on its powerful
historical brands including Oggy and the Cockroaches, Zig &
Sharko and Chicky, as well as new properties such as Oggy Oggy for
a preschool audience, Mr Magoo and Karate Sheep, and Academy Award®
nominated adult feature film I Lost My Body. Xilam’s expanding and
strong catalogue now consists of over 2,800 episodes and three
feature films. Xilam employs more than 500 individuals, including
400 artists, across its studios in Paris, Angoulême in France and
Ho Chi Minh in Vietnam. Xilam was ranked France's leading animation
studio for the 2018-2023 period in a report by the French national
centre for cinema and animation (CNC). Xilam is listed on Euronext
Paris Compartment C - PEA - SRD long Eligibility. ISIN:
FR0004034072, Symbol: XIL
For more information, visit: www.xilam.com
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version on businesswire.com: https://www.businesswire.com/news/home/20240718373093/en/
Marc du Pontavice – Chairman and CEO Cécile Haimet - CFO Phone:
+33 1 40 18 72 00
Image Sept Agency xilam@image7.fr Karine Allouis (Media
Relations) – Phone +33 1 53 70 74 81 Laurent Poinsot (Investor
Relations) – Phone +33 1 53 70 74 77
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