Xilam Animation: Group Prospects Update
26 Octobre 2023 - 6:03PM
Business Wire
Downturn in orders from US streaming platforms
in the Kids segment.
Anticipation of lower sales in 2024 and
suspension of the Ambition 2026 plan’s target
Regulatory News:
Xilam Animation (Paris:XIL), Academy Award®-nominated
French animation studio, releases an update on its outlook in a
market context where platforms are reducing their orders,
especially in the children's program market.
US streaming platforms cut back on orders for the Kids
segment
With their business models under pressure, American streaming
platforms are significantly reducing their investment in the Kids
animation segment. Today, they favor fewer investments, focusing on
American brands with worldwide recognition.
Expected decline in 2024 sales and suspension of Ambition
2026 plan target
With this economic trend affecting one of Xilam's growth
drivers, the Group now anticipates a significant drop in sales for
2024. The Group's target of achieving total operating income of €80
million by 2026 has therefore been suspended.
However, this event will have no impact on our expected
performance for 2023, nor on our catalog business, which remains
very dynamic.
Bolstered by its agility, the Group will continue to deploy its
other key growth drivers.
Rapid implementation of a cost-cutting plan
Given this new context for one of its growth drivers, the Group
is implementing a cost-cutting plan to maintain positive
profitability in 2024, while maintaining its creative and
production capacities to pursue its development.
Low level of debt
The Group has reduced its debt thanks to the repayment of its
€15 million EuroPP loan, which matured in July 2023. To date, debt
is mainly self-liquidating, and therefore backed by current
production. The Group also has sufficient cash resources to support
its ambitions for other growth drivers.
Marc du Pontavice, Chairman and CEO of Xilam, comments:
"The depth of the animation market today is such that Xilam remains
very well placed to take advantage of the many opportunities it
offers. With our extensive catalog, creative talent and worldwide
reputation, Xilam is determined to continue moving forward.”.
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) and AVoD (YouTube, Facebook)
platforms. With a global reputation for creativity and innovation,
coupled with cutting-edge editorial and commercial expertise, the
company has cemented its position as a key player in a fast-growing
market. Every year, Xilam builds on soaring successes and
capitalises on flagship franchises (Oggy and the Cockroaches, Zig
& Sharko, Chicky) as well as new brands (Oggy Oggy, Mr. Magoo,
Karate Sheep), which are strengthening and expanding a substantial
catalogue of more than 2,800 episodes and three feature films,
including the Oscar-nominated I Lost My Body. Xilam has unique CGI
skills and employs more than 600 people, including 400 artists,
across its studios in Paris, Lyon and Angoulême in France and Ho
Chi Minh City in Vietnam. Xilam was ranked France's leading
animation studio for the 2018-2022 period in a report by the French
national centre for cinema and animation (CNC). Xilam is listed on
Euronext Paris Compartment B - PEA - SRD long Eligibility. ISIN:
FR0004034072, Mnemo: XIL
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version on businesswire.com: https://www.businesswire.com/news/home/20231026776707/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) +33 (0)1 53 70 74 77
Xilam Animation (EU:XIL)
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Xilam Animation (EU:XIL)
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