With its cockroaches, Xilam seduced them all. The French animation studio, which published its results as of June 30 on Thursday evening, now generates 67% of its revenues on digital platforms, such as Netflix, Disney+, Amazon Prime Video, NBC Universal…, compared to 43% in 2020. And the trend will continue. Platforms, like TV channels, continue to invest heavily in animation, with viewers’ appetites seemingly boundless. The flow of investment will also intensify with the entry of platforms into AVoD (advertising video on demand, or video financed by advertising) and the development of Fast channels (Free ad-supported streaming TV , free linear television with advertising).
Over the year as a whole, Xilam has planned to devote between 33 and 36 million euros to new productions, of which there will be ten, including, for the first time, series for adults. This is a strong axis of diversification for the studio, which draws its notoriety from cartoons and series for children. The genre could represent 30% of society’s revenue within four to five years, ” or even 50% “, according to the CEO, Marc du Pontavice, questioned last March by our colleagues from Echoes. The studio is also embarking on merchandising. In October 2021, he joined forces with toy giant Simba to allow children to find toys from the series under the Christmas tree this year. Oggy Oggy and that of its spin-off Oggy and the Cockroaches. ” As a result, the level of growth in the second half will remain very strong “says the studio. On the stock market, the title, up 7.7%, to 32 euros, benefits from these remarks while welcoming the performance as of June 30. They are indeed solid.
Normative
Turnover and other income increased by 30.7%, to 17.6 million euros, a data higher by 1.6 million than that published in July due to a subsidy recognized late. The current operating profit increased in a lower proportion, by 18.6%, to 4.8 million, so that the margin was reduced from 29.9% to 27.2%. Nothing to worry about. ” It has returned to a more normative level considering the share of non-proprietary productions in the mix of new productions in the first half of the year, one third compared to less than 10% in the first half of 2021 “, underlines the analyst of the firm Oddo BHF. The profitability of non-proprietary productions (mainly Disney+ this year) is lower than that of proprietary productions, due to the growing adult segment. ” The proprietary versus non-proprietary mix should be close to 35%-40% over the year, which is in line with our expectations “says the analyst. ” The recent acquisition of Cube Cre?ative has not yet reached the bottom of the profitability of its parent company adds Xilam to explain the decline in the operating margin.
On the balance sheet, the studio’s net debt increased by 7 million euros, to 25.5 million, the so-called self-liquidating debts having increased under the effect of a high number of proprietary series in production. ” The group’s financial debt situation should evolve very positively from 2024, due to the shortening of payment terms for streaming platforms and the strengthening of the non-proprietary model which generates a negative working capital requirement. says Xilam. Today, most platforms, including Netflix, the French studio’s main client, pay up to two years after the delivery of the series.
PC