Xilam Animation (XIL) H2 2024 earnings summary

Executive summary

• Revenue declined 41% year-over-year to €23.5 million due to a sharp contraction in US streaming orders, especially in the kids' segment.

• Net income was heavily impacted by €28 million in catalogue and development project write-downs, resulting in a net loss of €25.6 million; excluding write-downs, net income was near breakeven.

• Free cash flow generation was strong at €7.9 million, leading to a fully debt-free financial structure by year-end 2024.

• The company is leveraging its strong brand, flagship franchises, and solid cash position to rebuild its order book amid industry downturn.

Financial highlights

• Total sales and grants reached €26.6 million, down from €45.7 million in 2023.

• Operating revenue before write-downs was €28.1 million; after tax credits, €32.3 million.

• Operating expenses were €29.4 million, with current operating income at -€1.4 million before write-downs.

• Net financial result improved to -€0.1 million due to deleveraging.

• Cash and cash equivalents stood at €7.3 million; net financial cash position at €1.6 million.

Outlook and guidance

• Revenue is expected to decline further in 2025 due to a low order book, with growth anticipated to resume in 2026.

• No significant additional fixed cost reductions planned for 2025; focus remains on talent retention and operational capacity.

• Three major new projects in production for 2025, with more under discussion.