Xilam Animation — Earnings Release 2018

Jan 10, 2019

Press Release

Paris, January 10, 2019

Xilam tops 10 billion views on YouTube

• +44% with close to 4 billion views in 2018, with US visits doubled
• +162% subscribers worldwide for 2018
• +55% YouTube revenues in 2018: ~10% of turnover for 2018

Xilam Animation (ISIN: FR0004034072; Symbol: XIL), an independent producer and distributor of original animated content, is pleased to announce a major milestone in its digital growth, having topped 10 billion total views of its videos on YouTube as at December 31, 2018.

Xilam thus confirms the rapid growth of its digital offering with a 44% increase in traffic (as number of videos viewed) to its YouTube programming, making for a total of close to four billion views in 2018, driven by strong momentum in the United States (+100%). This increased traffic is also reflected in the number of subscribers to Xilam channels, which grew 162% to reach 6.3 million at end 2018 (vs. 2.4 million at end 2017).

Revenue from YouTube traffic is set to represent 10% of Xilam's turnover for fiscal year 2018, a share that is expected to further expand in 2019. This income increased by 55% thanks to the US market, which contributed close to 30% of Xilam's YouTube revenue for the year. The global trendsetter when it comes to consumption of animated programming, the United States is at the source of an exploding demand in the market for cartoons. The US is a reservoir of untapped growth for Xilam, as is the Asian market, whose unbridled expansion—in terms of both volume and value—supports a solid growth outlook for the company over the next several years on the market of digital distribution.

YouTube 2018 sales breakdown by region

For 2019, Xilam anticipates a significant increase in traffic for its YouTube channels, notably, due to:

• The launch of its Paprika channel aimed at a preschool audience (preschool programming is a key vehicle for children's viewership on YouTube);
• Launch of the first channel dedicated to Oggy and the Cockroaches in India, where the show is tremendously popular among children.

About Xilam

Xilam is one of Europe's leading animation companies, producing and distributing original children's and family entertainment content across TV, film and digital media platforms. Founded in 1995 by Marc du Pontavice, the award-winning Paris-based company owns a catalogue of more than 2,000 animated series episodes and 3 feature films, including such household brands such as Oggy & the Cockroaches, Zig & Sharko, The Daltons, Rolling with the Ronks! and its first preschool property, Paprika. Broadcast in over 190 countries on all the major global children's TV networks, these series are also breaking records on all the major digital platforms, including YouTube with over 300 million views per month, ranking Xilam among the top global content providers in the realm of animation. Xilam employs over 400 people, including 300 artists, who work in its four studios, located in Paris, Lyon, Angouleme and Hô-Chi-Minh-Ville in Vietnam. Xilam is listed on the Euronext Paris stock exchange, Compartment B – Eligible investment for French Deferred Settlement Service (SRD long) and Equity Savings Plans (PEA)

Contacts

Morgann Favennec EVP Global Sales Development Tel: +33 (0) 1 40 18 72 00