Xilam Animation: First-Half 2026 Results
Significant improvement in operating income
Strong growth in proprietary production activity
Solid balance sheet
Theatrical release of animated feature Lucy Lost on October 28, a key milestone in Xilam’s feature film strategy
Accelerating deliveries of proprietary series over the coming reporting periods
Regulatory News:
Xilam Animation (Paris:ALXIL), Academy Award®-nominated French animation studio, announces its financial results for the first half of 2026, reviewed by the Board of Directors at its meeting on 28 September 2026 chaired by Marc du Pontavice.
Marc du Pontavice, Chairman and CEO of Xilam, comments: “The first half saw a significant improvement in our results, demonstrating the Group’s ability to maintain tight cost control as it returns to growth and focuses on executing its proprietary content strategy, which is expected to put the Company back on a path to profitability from 2027. The second half will be marked by the theatrical release of Lucy Lost, laying the foundation for the Group’s expansion into animated feature films, a highly complementary segment to the successful franchises we have built in animated series. Xilam regains strong momentum, driven by its strategic agility and the consistently high quality and creativity of its content.”
|
Unaudited consolidated income statements (‘000 euros) |
30.06.2026 |
30.06.2025 |
% variation |
|
Sales of new productions and developments |
2,692 |
1,996 |
+35% |
|
Catalogue sales |
3,077 |
2,212 |
+39% |
|
Total sales |
5,769 |
4,207 |
+37% |
|
Grants |
1,355 |
1,446 |
-6% |
|
Total sales and grants |
7,124 |
5,654 |
+26% |
|
Other current operating revenue (including ATC1) |
627 |
397 |
+58% |
|
Total operating revenue |
7,751 |
6,051 |
+28% |
|
Operating expenses |
(8,678) |
(8,469) |
|
|
Current operating income |
(912) |
(2,418) |
ns |
|
% total sales and grants |
ns |
ns |
|
|
Operating income |
(1,083) |
(2,419) |
ns |
|
Financial income and expenses |
(111) |
(59) |
ns |
|
Income |
(14) |
(2) |
ns |
|
Group consolidated net income |
(1,208) |
(2,480) |
ns |
|
% total sales and grants |
ns |
ns |
|
|
Net income attributable to the group |
(996) |
(2,533) |
ns |
|
(1) Estimated audiovisual tax credit (ATC) |
Strong first-half total sales growth of +37%
Total sales for the first half of 2026 amounted to €5.8 million, up 37%, reflecting the success of the Group’s strategy to refocus on proprietary productions.
- Sales of new productions and developments increased by 35%, with proprietary productions accounting for more than 95% of revenue, primarily driven by the delivery of the final instalments of the new series Submarine Jim.
- Catalogue sales increased by 39%, driven by Zig & Sharko following the announcement that Seasons 5 and 6 had entered production, as well as sales of the successful new series Piggy Builders.
Including grants and other current operating income, total operating revenue amounted to €7.8 million, up 28%.
Current operating income approaching break-even
Current operating income amounted to -€0.9 million, compared with -€2.4 million in the first half of 2025.
This significant improvement reflects both the Group’s continued tight control of fixed costs and the ramp-up in deliveries of proprietary productions, notably Submarine Jim, which has achieved strong international sales, as well as higher catalogue sales.
Net income, Group share, improves by €1.5 million
Net financial expense remained very limited at €0.1 million, reflecting Xilam’s solid balance sheet structure. In addition, the cost of self-liquidating debt used to finance proprietary productions is capitalised as part of production costs.
After accounting for minority interests, net income attributable to the Group amounted to -€1.0 million.
Solid financial structure to support growth
Cash remained at a strong level of €3.3 million as of June 30, 2026.
|
Unaudited data (‘000 euros) |
30.06.2026 |
31.12.2025 |
|
Cash and cash equivalent |
3 313 |
4,509 |
|
Corporate financial liabilities (1) |
(2 888) |
(3,186) |
|
Net cash |
425 |
1,323 |
|
Self-liquidating financial liabilities |
(11 158) |
(4,863) |
|
Net financial debt |
(10 733) |
(3,540) |
|
(1) Non-self liquidating financial liabilities |
- The Group maintained a strong level of available cash while continuing to make significant investments to support growth. Net cash, excluding self-liquidating financing, stood at €0.4 million, with corporate financial debt remaining well controlled at €2.9 million.
- Self-liquidating debt amounted to €11.2 million, reflecting the Group’s strong renewed investment in proprietary productions. This financing model is designed to fund the working capital requirements associated with production and operates in a similar way to factoring, with banks being repaid directly by customers as proprietary series are delivered.
Theatrical release of Lucy Lost on October 28 and ramp-up in proprietary production deliveries
Revenue and profitability are expected to improve in the second half compared with the first half, notably driven by the delivery of Lucy Lost, the final episodes of Submarine Jim, and catalogue sales.
The theatrical release of animated feature Lucy Lost, scheduled for October 28, 2026, will be a key highlight of the second half. It will mark an important milestone in the Group’s strategy to release one feature film per year, alternating between films for family and adult audiences.
Supported by this strategy and the delivery of numerous proprietary series over the coming reporting periods, Xilam is returning to strong revenue growth over the 2026-2028 period, alongside a significant improvement in operating profitability.
Xilam thus confirms the strength of its brand, the creativity of its talent and the relevance of its strategic vision, positioning the Group at the heart of the global animation industry.
About Xilam A major player in animation, Xilam is an integrated studio founded in 1999 that creates, produces and distributes original programmes in more than 190 countries for both children and adult audiences. These series and films are distributed across television, cinemas and SVOD streaming platforms including Netflix, Disney+, Amazon, Universal+ as well as AVOD streaming platforms including YouTube and Facebook. Xilam also launched TOON BOX, its brand new, kids safe, ad-free streaming platform. With its creativity and capacity for innovation recognised worldwide as well as editorial and commercial expertise at the cutting edge of its industry, Xilam is positioned as a key player of the market. Each year, Xilam builds real successes and capitalises on its powerful historical brands including Oggy and the Cockroaches, Zig & Sharko and Chicky, as well as new properties such as Piggy Builders and Submarine Jim. Following the success of the Oscar-nominated feature film I Lost My Body, Xilam Films is pursuing its feature film strategy with Lucy Lost, which was selected for the Official Selection at the Cannes and Annecy festivals, and The Wolf, scheduled for delivery in 2027. Xilam’s strong and expanding catalogue comprises more than 3,000 episodes and several feature films. Xilam employs over 450 people across its studios in Paris, Angoulême and Ho Chi Minh City, Vietnam. Xilam is listed on Euronext Growth Paris - PEA – PME Eligibility ISIN : FR0004034072, Symbol : ALXIL
For more information : www.xilam.com
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Marc du Pontavice – Chairman and CEO Cécile Haimet - CFO Tél. +33 1 40 18 72 00
Agence Image Sept xilam@image7.fr Karine Allouis (Media Relations) - Tél. +33 1 53 70 74 81 Laurent Poinsot (Investor Relations) - Tél. +33 1 53 70 74 77