16% increase in operating revenues 76% growth
in catalogue sales, at €11M Current operating income (before
catalogue write-down): €9.1M Successful strategy to generate free
cash flow: + €6.5M Dynamic growth trajectory and stronger
assets
Regulatory News:
Xilam Animation (Paris:XIL), the independent animation
programme production and distribution company, announces its
financial results for the fiscal year ending 31 December 2022,
reviewed by the Board of Directors meeting on 28 March 2023, under
the chairmanship of Marc du Pontavice.
(in thousands of euros)
31.12.2022 (1)
Consolidated excl. catalogue write-down
31.12.2022 (1)
Consolidated
31.12.2021
Consolidated
Sales of new production and
developments
25,014
25,014
20,365
New-production grants(2)
5,462
5,462
8,670
Total new production and development
income
30,476
30,476
29,035
Total catalogue sales
11,277
11,277
6,422
Other revenue
260
260
136
Total revenues and other income
42,013
42,013
35,593
Other grants and current operating
income(3)
3,348
4,706
4,646
Total operating revenues
45,451
46,719
40,240
Operating expenses
Depreciation and write-down
(16 063)
(20 285)
(16 063)
(28 190)
(6 239)
(25 330)
Current operating income
9,102
2,466
8,671
% of revenue
21.7%
5.9%
24.4%
Operating income
8,857
2,221
8,698
% of revenue
21.1%
5.3%
24.4%
Group consolidated net income
6,319
1,342
6,840
% of revenue
15.0%
3.2%
19.2%
(1) Unaudited data (2) Excluding the Audiovisual Tax Credit
(ATC) (3) Including the Audiovisual Tax Credit (ATC)
Marc du Pontavice, Chairman and CEO of Xilam: "In 2022,
Xilam successfully pursued its strategic developments with the
launch of several non-proprietary productions and young adult
programmes that open up new avenues for growth. There was a
significant increase in revenue (excluding grants), which rose 35%,
with catalogue sales reaching a new high of more than €11M, driven
by our three main franchises. However, while this performance led
to an increase in the overall value of the catalogue, we also,
paradoxically, recorded a write-down for some titles, which
technically impacted our operating profitability, albeit
temporarily. This did not affect our liquid assets, which improved
by €3M thanks to our ability to generate free cash flow, again
demonstrating the strength of our business model. Xilam continues
to grow and strengthen its position from year to year, reaching key
milestones and gaining increasing recognition from the entire
distribution market. Xilam has high-calibre talent and continues to
lead the way in animation production while maintaining profitable
growth and very buoyant momentum."
Strong growth in sales of new productions and catalogue
titles (+35%), at €36.3M
Total revenues, details of which were published on 16 February,
stood at €46.7M, an increase of 16%, which is a new record for the
group and reflects its ability to adapt its offering to a changing
market while seizing growth opportunities.
This improvement was a direct result of the sharp increase in
sales of new production and catalogue titles, which reached €36.3M,
an increase of 35%:
- Sales of new production and developments grew by 23% to €25.0M,
with outstanding performance in Work for Hire, at €13.0M, and
proprietary productions, at €12.0M.
- There was very significant growth in catalogue sales, which
surged 76% to €11.3M, a new record.
Xilam cemented its leading position with 13 series in
production, nine of which were launched in 2022 alone.
In 2022, annual production expenditure grew by 16%, at €36.3M.
This was largely due to growth in value, reflecting Xilam's ability
to attract the market's largest budgets from major clients. Among
the 13 series in production, nine were launched in 2022, cementing
Xilam's position as a leader in the European market. This
performance embodies the group's exceptional artistic and technical
versatility, which empowers it to tackle all genres and address an
extremely wide range of target audiences. It also leads to the
coming increase in revenues to be recorded in the accounts upon
delivery of the programmes associated with these expenses.
The ramp-up of Cube Creative, acquired in 2020, has been slower
than expected, and a new management team is now in place to bring
Cube in line with the group's growth trajectory and
profitability.
Current operating margin (before catalogue write-down):
21.7%
Current operating income, before the catalogue write-down, stood
at €9.1M, an operating margin of 21.7%. Excluding Cube Creative,
the margin was even higher, at 26.1%.
This confirms the solidity of Xilam's business model, which is
underpinned by three pillars: proprietary production, catalogue
sales and Work for Hire.
Impact of the catalogue write-down: €6.6M
The growth in catalogue sales mainly stemmed from the group's
three flagship franchises (Oggy and the Cockroaches, Zig &
Sharko and Chicky), which represented 72% of sales. In contrast,
some other catalogue titles did not perform as well, particularly
those series not commissioned for a second season.
In accordance with accounting standards, titles that are gaining
in strength cannot be revalued, while those with less visibility
must be written down. As announced during the publication of the
2022 full-year revenues on 16 February, Xilam recorded a gross
write-down in the value of its catalogue of an exceptional amount
of €7.9M, partially offset by the recognition of the corresponding
audiovisual tax credit for €1.3 million.
This adjustment for accounting purposes has no impact on the
group's cash position; nor does it call into question the economic
value of the catalogue, as witnessed by the record level of sales
in 2022.
The group estimates that potential future revenues from
catalogue titles remains largely superior to their book value, such
that the catalogue will continue to make a very significant
contribution to group earnings.
Operating income and net income
After allowing for the catalogue write-down, operating income
stood at €2.2M, compared with €8.7M in 2021. Excluding write-down,
this would amount to 8,9M€.
Net income totalled €1.3M, after deduction of interest expenses
and taxes. Excluding the catalogue write-down, net income totalled
€6.3M.
Financial position: positive free cash flow and net
structural debt reduced by 58%
As of 31 December 2022, net financial debt (excluding rental
debts) stood at €15.9M (compared with €18.6M as of 31 December
2021), a reduction of €2.7M.
This improvement stems from:
- Positive free cash flow of €6.5M, thanks to the ramp-up in
Work for Hire and record catalogue sales. - The stability of
self-liquidating financial debt (such as factoring), at €13.4M. -
The stability of non-self-liquidating financial debt, at
€15.7M.
As a result, the net cash position improved by €3.3M to €13.3M,
while net structural (non-self-liquidating) debt was reduced by 58%
to €2.5M.
As of 31 December 2022, shareholders' equity amounted to €69.5M
(compared to €67.6M at the end of 2021).
Corporate Social Responsibility
In November 2022, Xilam took an important step forward by
appointing a Chief Impact Officer to give a strong impetus to the
group's responsible transformation.
Since the creation of this new position, the time for action has
come and Xilam is multiplying initiatives to meet the many
challenges of the ecological transition with results that are
already tangible and sustainable. A carbon assessment to measure
the environmental impact of the Group's activities and to define a
trajectory for reducing its greenhouse gases is currently being
finalised. An overhaul of infrastructures and IT tools for an
in-depth GREEN evolution has already been approved with the first
concrete effects expected for the second half of 2023. A
transformation of digital production practices and processes to
reduce and then limit the volume of data storage is also planned
for this year.
In this search for ecological and societal transition, Xilam is
resolutely moving towards a responsible transformation of its
activities. With a view to communicating, supporting, and
intensifying this approach among all the Group's employees, Xilam
has created a contributory blog on the challenges of sustainable
development which it will launch next month.
In addition, Xilam has also stepped up its ongoing commitment to
youth employment and training, and took on 14 apprentices in 2022
to help them gain a foothold in the job market and bring fresh
impetus to the sector.
In 2022, Xilam was given a rating of 4 stars (out of 5) by
Humpact, an improvement of 0.5 points compared with 2021. The group
also achieved a score of 63/100 from Gaïa in 2022.
Strong objectives and perspectives
Building on its solid order book, Xilam expects its annual
production expenditures (proprietary and non-proprietary) to reach
between €42M and €45M in 2023, a level designed to strenghen the
company's growth trajectory. Xilam will also ramp up the sale of
merchandising based on the Oggy Oggy pre-school series in 2023,
following a promising launch for the 2022 festive season.
In an environment buoyed by significant investments in digital
platforms, Xilam plans to continue its cycle of profitable growth
and double revenues to around €80M by 2026, in line with the
Ambition 2026 plan.1
Agenda
Combined Annual General Shareholders’ Meeting: 8 June 2023
Publication of H1-2023 revenues: 20 July 2023 (after market
closing) Publication of H1-2023 results: 28 September 2023 (after
market closing)
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. Code ISIN: FR0004034072, Mnemo: XIL
1 Total operating revenues
View source
version on businesswire.com: https://www.businesswire.com/news/home/20230330005626/en/
Marc du Pontavice - Chairman and CEO Cécile Haimet - 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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