Xilam Animation (XIL) H1 2025 earnings summary

Executive summary

• Total sales for H1 2025 were €4.2M, down 64% year-over-year, reflecting a sharp decline in service/non-proprietary activities and a transition to proprietary productions.

• Revenue and profitability declined sharply due to lower new production deliveries and a focus on longer-cycle proprietary projects.

• Operating loss widened to €2.4M from €1.3M in H1 2024, with net loss attributable to shareholders at €2.5M versus €1.0M loss last year.

• Strategic focus on proprietary productions, with 65% of sales from this segment and 77% of revenue generated internationally.

• Investments in proprietary productions are expected to yield medium-term returns, with improved seasonality anticipated to boost second-half results.

Financial highlights

• Total operating revenue for H1 2025 was €6.1M, down 56% year-over-year; total revenue and subsidies were €5.7M.

• Sales of new productions and developments dropped 78% to €2.0M, while catalogue sales remained stable at €2.2M.

• Free cash flow was negative €1.6M to €4.3M, reflecting increased investment in proprietary productions.

• Net financial debt stood at €1.3M as of June 30, 2025, with cash and cash equivalents at €3.9M.

• Shareholders' equity was €49M at June 2025, down from €51M at end-2024.

Outlook and guidance

• H2 2025 revenue and profitability expected to improve, driven by increased deliveries of proprietary series and stronger catalogue performance due to seasonality.

• Benefits from the rebound in proprietary production expected to materialize in H2-2025 and beyond.

• Several new series and a feature film are planned for production in 2026-2027, including The Doomies (Q1), Capitaine Jim/Submarine Jim (Q3), and Lucy Lost (Q4).

• Strategic focus on the young-adult segment and leveraging established franchises for future growth.