Xilam Animation (XIL) H1 2025 earnings summary

Executive summary

• Total sales for H1-2025 reached €4.2M, down 64% year-over-year, reflecting a sharp decline in service activities and a transition to proprietary productions with a focus on longer-cycle projects with leading European broadcasters.

• Operating environment remains challenging, with a slowdown in streaming demand for kids' content and industry consolidation.

• 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 a ramp-up in deliveries and improved seasonality anticipated to boost second-half results.

Financial highlights

• Total sales for H1 2025 were €4.2 million, down 64% year-over-year, with total operating revenue at €6.1 million, down 56%.

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

• Current operating income was negative at €2.4M, compared to negative €1.3M in H1-2024.

• Consolidated net income was a loss of €2.5M, compared to a loss of €1.1M year-over-year.

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

Outlook and guidance

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

• Second-half 2025 is expected to see improved revenue and profitability, driven by the ramp-up in proprietary series deliveries and stronger catalogue sales due to seasonality.

• Three major launches scheduled for 2026: The Doomies (Q1), Submarine Jim (Q3), and Lucy Lost (Q4), with significant international deals in progress.

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