Xilam Animation (XIL) H1 2024 earnings summary

Executive summary

• First half 2024 marked by launch of new productions and strong free cash flow generation.

• Net income attributable to the group was close to breakeven, despite a challenging market.

• Major recognition for Xilam's expertise with the global launch of Netflix's Twilight of the Gods.

Financial highlights

• Sales fell 36% year-over-year to €11.6m, reflecting reduced orders from US streaming platforms.

• Total operating revenue declined 35% to €13.9m compared to H1 2023.

• Current operating income was €-1.3m, down from €2.2m in H1 2023.

• Net profit attributable to the group was €-1.0m, near breakeven.

• Free cash flow rose 24% year-over-year to €2.7m.

Outlook and guidance

• Forecasts current operating income close to breakeven for 2024, expecting a stronger second half, especially in catalogue sales.

• Strategy focuses on rebuilding the order book and expanding in the young-adult and feature film segments.