Significant rise in total revenues, up by 17%
Record revenues from catalogue title sales, up by 72% Group
Operating Earnings in excess of €46 million 9 new series launched
in production
Regulatory News:
Xilam Animation (Code ISIN: FR0004034072, Symbol: XIL),
the independent animation program production and distribution
company, announces its revenues for the fiscal year ending 31
December 2022.
Marc du Pontavice, Chairman and CEO of Xilam, stated: “This 2022
financial year confirms the strength of the Xilam model, which is
now founded on three pillars: the creativity of the studio, which
enables it to build up its attractiveness year after year with
original creations that are set to become its franchises in the
future. The production capacity of the studio and the wealth of
talent it employs which has enabled it to launch a record number of
new productions this year. Xilam has thus become a standard-bearer
for the major clients who have shifted their demand toward
‘premium’ servicing that bolster the company’s know-how in new
market segments (notably the adult segment), thereby opening up new
avenues for growth. Lastly the performance of the catalogue, which
has registered a new record in sales this year driven in large part
by the main franchises. Xilam is therefore highly confident in its
ability to grasp new growth opportunities in a buoyant
environment.”
(‘000 euros)
31.12.2022 (1)
31.12.2021
% variation
Sales of new productions and
developments
24,783
20,365
+22%
New Production subsidies (2)
5,404
8,670
-38%
Total new production and development
products
30,187
29,035
+4%
Total catalogue products
11,054
6,422
+72%
Other revenues
262
136
+91%
Total revenues and other income
41,502
35,593
+17%
Other subsidies and current operating
income
(including CIA) (3)
4,753
4,646
+2%
Total operating revenues
46,255
40,240
+15%
- Unaudited data
- excluding audiovisual tax credit
- including an estimate of the audiovisual tax credit
Total revenues and other income is up by 17% in 2022, and by
34% excluding subsidies
This increase is due primarily to the strong growth in new
productions (+22%), which is all the more remarkable as it comes on
an already high base (+91% growth from 2020 to 2021).
Among these new productions, the high level of servicing,
reaching €12.8M as a result of the group’s successful positioning
towards the major international streaming platforms. This model
delivered benefits on three fronts, contributing to the growth of
Xilam, generating a virtuous circle of cash flow generation, and
lastly supporting the group’s profitability. Servicing represents
27% of the total operating revenues in 2022 and should maintain a
share of 30% total revenues in the medium term.
Turnover from proprietary productions amounts to €12M. During
fiscal year 2022, the delivery of episodes has been centred around
the final episodes of the Oggy and the Cockroaches- Next Gen series
broadcast on Gulli in France and on Netflix worldwide, Pfffirates
on TF1, Karate Sheep (formerly Trico) on Netflix, Mr Magoo 2 on
France Télévision and ITV (in the UK), as well as season 5 of
Kaeloo on Canal+.
Subsidies were down on the previous year at €5.4M owing to the
increased share of servicing in the yearly revenues, as such
servicing does not generate any subsidies.
Catalogue sales reach new record at €11.1M, up by 72%
Catalogue sales are up drastically (+72%), reaching a new high
at €11.1M. This increase is due primarily to the three Xilam banner
franchises Oggy and the Cockroaches, Zig and Shako, and to a lesser
degree Chicky (a legacy from the Cube catalogue). The power of
those group franchises anchors the future of the catalogue, whilst
giving it a fresh dynamic. It further vindicates Xilam’s strategy
of pursuing a proprietary model, stimulating its renewal with
regular releases of new seasons and the exploration of new
creations.
Total operating revenues up by 15% at €46.3M
After taking other current operating income (of which the
audiovisual tax credit) into account, all of which amounted to
€4.8M (+2%), total operating revenues amounted to €46.3M, a 15%
year on year increase, establishing a new business record for the
group, and demonstrate the adaptability of its offer in the face of
a changing market, as well as its ability to seize opportunities
for growth.
The fiscal year also confirmed Xilam’s strong presence
internationally (78% of sales) and on streaming platforms (66% of
sales).
Xilam confirms its leader status with 13 series under
production, of which 9 were launched in the year 2022 alone
The yearly volume of production expenses is a reliable leading
indicator that signals growth in the business for the years to
come. Direct spending on production being financed over 100% by
early sales, this indicator would indeed reflect the coming
increase in the company’s revenues, as they will be recorded in the
accounts upon delivery of the programmes associated with these
expenses.
These yearly expenses have increased by 12.5% in 2022, to
€35.1M, an increase that is all the more remarkable as it is
primarily a growth in value rather than an increase in volume,
reflecting Xilam’s ability to get the largest budgets on the market
from major clients. Among the 13 series under production, 9 were
launched in 2022, cementing Xilam’s place as a leader in the
European market. This achievement is the fruit of the exceptional
artistic and technical adaptability of the whole group, which
allows it to take on all genres and to address an extremely wide
range of target audiences.
As relates to the adult-teenage segment, Xilam has launched the
production of The Doomies series (22 half hours), a horror-comedy
created within the studios commissioned by the Disney+ platform, as
well as an important adult series (9 half-hours) commissioned by
Netflix and created by a household Hollywood name.
In the family segment, the group launched the second season of
Chip ‘n Dale, an 18 half-hours format commissioned by Disney+, the
Seven Bears series (13 CGI half-hours) commissioned by Folivari and
Netflix, as well as the fourth season of the Athleticus series (30
CGI episodes of 4 minutes each) broadcast by Arte.
Finally, for children, Xilam has launched the production of four
new series: the fourth season of Zig and Sharko, broadcast by the
M6-Gulli group (26 half-hours), the fifth season of Kaeloo for
Canal+, the second season of Les Contes de Lupin for France
Télévision (26 half-hours), as well as a new original creation
called Buddybot, again for France Télévision (26 half-hours).
Trends in the market favour catalogues with strong
franchises
In a market where broadcasters (TV and streaming platforms) are
pitted against each other in fierce competition, operators tend to
focus their investments in catalogue on major franchises to secure
their audiences. The Xilam catalogue draws full advantage from this
trend, as the group has constantly proven its ability to refresh
and renew its best-selling franchises. As a testimony to this
trend, its three main titles (Oggy and the Cockroaches, Zig and
Shako, Chicky) account for almost three quarters of the growth of
the catalogue this year. This also allowed the group to reach a new
level of catalogue sales, which is now over €10M in annual
revenues. The other titles, for their part, display a less rapid
growth profile, even though the AVOD segment should witness renewed
growth, as most of the traffic is generated through catalogue
titles.
This market evolution therefore requires a review of the value
of the titles in the catalogue, which is currently underway, and
whose conclusions will be integrated into the 2022 financial
statements. Bearing in mind that, in application of accounting
standards, titles that are gaining in strength cannot be revalued,
while those with less visibility must be depreciated, only the
depreciations will be recorded in the accounts. As a consequence of
such valuation changes, the operating earnings for 2022 may be
affected exceptionally. The level of such discounts, which will be
announced during the presentation of the annual earnings for 2022,
on March 30, will have no consequence on the group cash flow.
Readers are reminded that the accounting valuation exercise does
not undermine the economic value of the catalogue, as demonstrated
by the record level of sales generated in 2022, or the business
model of the group, whose profitability is guaranteed both by the
recurring income stream from catalogue sales and by the improving
margins in original production cycles performed as a service to the
major streaming platforms.
Objectives and outlook:
In a high-growth environment bolstered by record investments on
the part of digital platforms, Xilam intends to continue on its
growth cycle and, in line with the Ambition 2026 plan, is on a path
to double its revenues1 to about €80M within this timeframe.
Agenda
Publication of annual results 2022: 30 March 2023 (after market
closure).
About Xilam
As a major player in the animation industry, Xilam is an
integrated studio founded in 1999 that creates, produces and
distributes original programmes in more than 190 countries for
children and adults, broadcast on television and on SVoD (Netflix,
Disney+, Amazon, etc.) and AVoD (YouTube, Facebook, etc.)
platforms. With a global reputation for creativity and its capacity
for innovation, an editorial and commercial expertise at the
forefront of its industry, Xilam is positioned as a key player in a
fast-growing market. Each year, Xilam, builds on its real successes
and capitalises on powerful historical brands (Oggy and the
Cockroaches, Zig & Sharko, Chicky, etc.) and new brands (Oggy
Oggy in the pre-school sector, Mr. Magoo, Karate Sheep, etc.) which
are consolidating and expanding a significant catalogue of more the
2,700 episodes and 3 feature films including the Oscar-nominated I
Lost My Body. Xilam has unique GCI skills. Xilam employs more than
600 people, including 400 artists, across its studios in Paris,
Lyon, Angoulême and Hô-Chi-Minh in Vietnam. Xilam is listed on
Euronext Paris Compartment B - PEA - SRD long Eligibility.
1 Total operating revenues
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version on businesswire.com: https://www.businesswire.com/news/home/20230216005715/en/
Marc du Pontavice - Chairman and CEO Arnaud Duault - CFO Phone
+33 (0)1 40 18 72 00 Image Sept Agency xilam@image7.fr Karine
Allouis (Media Relations) - Phone +33 (0)1 53 70 74 81 Laurent
Poinsot (Investor Relations) - Phone +33 (0)1 53 70 74 77
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