Launch of highly promising new
productions
Net income attributable to the group close to
breakeven
Strong generation of free cash flow
Very solid financial position with a sharp
reduction in financial debt
Enthusiastic reception for Twilight of the
Gods, the worldwide series launched by Netflix: a new recognition
of Xilam's expertise
Regulatory News:
Xilam Animation (Paris:XIL), Academy Award®-nominated
French animation studio, announces its financial results for the
first half of 2024, approved by the Board of Directors on 26
September 2024, chaired by Marc du Pontavice.
Marc du Pontavice, Chairman and CEO of Xilam, comments:
"Xilam is demonstrating its agility and responsiveness, in a
particularly challenging market, by successfully implementing its
strategy, with (i) the strengthening of commercial ties with
European broadcasters as evidenced by the production of two new
series, Piggy Builders and Submarine Jim, (ii) the emergence of a
recurring business in the animated film segment, to build on the
huge success of I Lost My Body a few years ago, with the production
launch of Lucy lost, a new animated family film, and finally (iii)
the continuation of our breakthrough in the adult animation
segment, highlighted by the global success of the Netflix series
Twilight of the Gods, created by Zack Snyder and produced in
Xilam's studios. More than ever, the creative and technical
qualities of the Xilam studio are capturing the attention of major
players. With strong cash generation over the first half and
strengthened shareholders' equity, we are successfully pursuing our
strategy with the ambition of a rapid return to profitable
growth".
Income statement (in thousands of
euros)
30.06.2024 (1)
30.06.2023
% change
Sales of new productions and
developments
9,277
14,431
-36%
Catalogue sales
2,309
3,716
-38%
Total sales
11,586
18,147
-36%
Grants (2)
1,688
2,351
-28%
Total sales and grants
13,274
20,498
-35%
Other current operating revenue (including
ATC)
610
797
ns
Total operating revenue
13,884
21,295
-35%
Operating expenses
(15,195)
(19,140)
-21%
Current operating income
(1,310)
2,155
ns
% total sales and grants
ns
10,5%
Operating income
(1,450)
2,158
ns
Financial income and expenses
(109)
(79)
Income tax
441
(318)
Group consolidated net income
(1,119)
1,761
ns
% total sales and grants
ns
8,6%
Net income attributable to the
group
(956)
1,851
(1) The limited review of the half-yearly financial information
has been finalized (2) Excluding the audiovisual tax credit
(ATC)
Sales of €11.6m and total operating revenue of €13.9m
First-half sales were down 36% at €11.6m. This decline was
expected, given the cut back on orders from American streaming
platforms for the kids segment, announced in October 2023.
- Sales of new productions and developments came to €9.3m (down
36% on the first half of 2023). Servicing (non-proprietary
productions) accounted for 71%, confirming the success of the
group's diversification into the young-adult segment for
platforms.
- Catalogue sales came to €2.3m (down 38%), but this low level
does not reflect the annual performance, which, given ongoing
negotiations, is expected to be very satisfactory.
After accounting for grants and other operating revenue, total
operating revenue came to €13.9m.
Current operating income of €-1.3m, in line with
expectations, amid order book rebuilding.
Current operating income was €-1.3m, compared with €2.2m in the
first half of 2023. In addition to the contraction in production
activity, it was also impacted by the asymmetrical activity level
of the catalogue in the first half.
In this context, and while the group is implementing its
strategy to rebuild its order book, Xilam has reacted swiftly to
implement a savings plan (regrouping sites, pooling resources) and
keep its fixed costs under control: these will fall by 20% over the
full year, without affecting the company's core expertise.
Net profit attributable to the group of €-1.0m
Net financial income of €-0.1m, reflects a halving of the cost
of gross financial debt, mainly due to the group's substantial debt
reduction in 2023 and over the first half of 2024.
Income tax amounted to a positive €0.4m.
After taking into account the minority interests, net profit
attributable to the group was close to breakeven at €-1.0m.
Strong free cash flow generation of €2.7m, up 24%.
The group generated free cash flow of €2.7m in the first half,
up 24% compared to first half 2023.
This free cash flow generation results from:
- Net cash flow from operating activities of €6.3m, including
€3.8m in cash flow from operating activities and €2.5m in cash
generated by the reduction in working capital requirements.
- A reduction in acquisitions of intangible assets compared to
the first half-year of 2023, given the lower proportion of
proprietary productions.
A strengthened balance sheet thanks to cash generation and
the capital increase completed at the beginning of the first
half-year 2024
After taking into account repayment of rental debts and interest
paid, net cash related to operating activities amounted to €1.4m.
In addition, €3.6m of net cash was generated by the capital
increase carried out at the beginning of the 1er half-year
2024.
As a result, net financial debt has thus been significantly
reduced by €5.0m to reach just €2.3m at the end of the first
half-year 2024.
(In thousands of euros)
30.06.2024 (1)
31.12.2023
Cash and cash equivalents
6,568
8,139
Corporate financial liabilities (2)
(4,079)
(4,377)
Net cash
2,489
3,761
Self-liquidating financial liabilities
(4,798)
(11,053)
Net financial debt
(2,309)
(7,292)
(1) The limited review of the half-yearly financial information
has been finalized (2) Non-self-liquidating financial
liabilities
This net financial debt breaks down into:
- Net cash, excluding self-liquidating financial liabilities, of
€2.5m.
- Self-liquidating financial liabilities down sharply to €4.8m
(from €11.0m at end-2023), reflecting the payment of receivables
from major international platforms.
At 30 June 2024, total shareholders' equity stood at €76.7m
(compared with €74.1m at the end of 2023). When compared to the
very low level of net financial debt, this reflects the group's
very solid financial position, enabling it to pursue its
strategy.
2024 confirms the successful implementation of Xilam's
strategy
Since the beginning of the year, Xilam has announced the launch
of three new productions, demonstrating the studio's high profile
and the creative power of its talents, as well as the strength of
its ties with both major European broadcasters and international
streaming platforms.
- The group launched the production of two new series in the
first half of the year. Financed on a proprietary model, they
assemble France Télévisions, ZDF and the BBC for Piggy Builders, a
pre-school series in 3D, and France Télévisions and Super RTL for
Submarine Jim, a comedy aimed at kids.
- In September, the group announced the launch of Lucy Lost, a
new epic family feature, co-written and directed by Olivier Clert,
and adapted from the novel Listen to the Moon by
multi-award-winning British author Michael Morpurgo. With this
project, Xilam is building on the immense success of I Lost My Body
a few years ago.
Also in September, Netflix launched the eight-episode first
season of its new animated series for young-adult, Twilight of the
Gods, created by iconic director Zack Snyder. The series was
produced at Xilam’ studios, and the press has enthusiastically
praised the extraordinary quality of the animation. This series
marks a major first step in the success of the group's strategy of
positioning itself on prestigious productions aimed at the
young-adult segment.
It will soon be followed in 2025 by the exclusive release on
Disney+ of The Doomies, a horror comedy for teenagers created and
produced by Xilam.
Despite a projected significant drop in 2024 revenue, the group
maintains its forecast of a current operating income close to
breakeven, on the back of a better second half, particularly in
terms of catalogue sales.
Recognised as France's leading animation studio for the
2018-2023 period by the CNC's latest study, Xilam, by resolutely
moving forward rebuilding its order book, is confirming the
strength of its brand, the creativity of its talent and the
relevance of its strategic vision, positioning the group at the
heart of the global animation industry.
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 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, and Academy Award® nominated adult
feature film I Lost My Body. Additionally, Xilam is serving as the
animation studio for Zack Snyder’s animated series Twilight of the
Gods, launched worldwide on 19 September 2024 by Netflix, and also
produces Chip ‘n’ Dale: Park Life, alongside the forthcoming horror
comedy The Doomies, for Disney+. Xilam’s expanding and strong
catalogue now consists of over 2,800 episodes and three feature
films. Xilam employs more than 400 individuals, 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
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240930293531/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
Xilam Animation (EU:XIL)
Historical Stock Chart
From Oct 2024 to Nov 2024
Xilam Animation (EU:XIL)
Historical Stock Chart
From Nov 2023 to Nov 2024
