The company has had the best stock market performance of the CAC All Tradable index in France 2016.
With an increase of over 400%, the shares of Xilam Animation posted the largest increase, reaching a market capitalisation of €44m as of 31st December 2016.
The market cap, which was very low up until mid-2016, did not reflect the upturn in financial fundamentals or the significant potential for development.
Xilam is a leading independent animation company in Europe, a pure-play provider of cartoons for children. It now has four production studios of which three are located in France. Xilam Animation employs 400 people who currently produce content for 200 half-hour programs.
Xilam bases its model on a 20-year heritage strategy of working almost exclusively on content created in-house. Xilam therefore has full control and ownership of a catalogue of strong brands that it exports worldwide: in 2015, international sales accounted for 50% of total sales and 68% of the catalogue.
In a rapidly changing market, powerful levers now foster Xilam’s strategy, making it possible to forecast a significant short and long-term growth in catalogue sales.
This is due to the rise of emerging markets, notably India and South-East Asia, where Xilam has already garnered significant market share. The rapid deployment of digital platforms enables a near-instantaneous worldwide distribution of the catalogue. This has notably resulted in exponential growth of the videos viewed, and in a new revenue stream that will account, as from 2016, for about 50% of catalogue income. For instance the consumption of Xilam content on YouTube reached more than 2.2 billion views last year, a 98% increase compared to 2015.