First line of toys available for Christmas
2022
A major step forward in Xilam's growth
strategy
Regulatory News:
Xilam Animation (ISIN Code: FR0004034072, Symbol: XIL),
an independent animation production and distribution company,
announces a major step forward in implementing its ‘Scale 2023’
strategic plan with the signature of a key (Master Toy) license
launching the merchandising campaign for the Oggy Oggy series.
Oggy Oggy pre-school series: the group's first high-potential
merchandising operation scheduled for Christmas 2022
Over many years, Xilam has been developing strong proprietary
brands that offer opportunities to market derivative products,
especially series aimed at the pre-school market. The fully
CGI-animated series enable the characters and settings to be
reproduced identically in the form of toys which stimulate the
imagination and creativity of children, by encouraging them to
become actors in their own world.
Xilam has chosen its Oggy Oggy series, because it has many
favourable factors to ensure the success of this first
merchandising launch:
- It is the Spin-off of the world-famous series ‘Oggy and the
Cockroaches’ which already has a powerful brand awareness.
- Produced with a production budget of almost €18 million, it
both provides exceptional visual quality and depicts key
educational qualities to encourage parental buy-in.
- It has been subject to a very large initial order of 156
episodes; this volume will guarantee significant exposure on
channels and platforms.
- The Oggy Oggy series is currently being rolled out
worldwide:
- August 2021: global launch on Netflix with
43 initial episodes. New episodes to be released every 4 months
until the end of 2022. - January 2022: Launch of a YouTube channel
with various short formats to build awareness. This channel will
use Xilam’s powerful digital ecosystem with a worldwide base of 50
million subscribers. - September 2022: The target audience will be
expanded by launching the series on the leading Free TV channels in
their markets, including Super RTL (Germany), France TV (France)
and Discovery (Italy), etc.
This roll-out to a worldwide, multi-channel audience will
provide a very solid base to build Oggy Oggy's awareness, and
support the successful launch of the first range of toys for
Christmas 2022.
Simba Dickie Group, internationally renowned partner
Xilam has chosen the company Simba to support this first
merchandising campaign. Simba brings its successful experience in
launching toys for pre-schoolers (notably Masha and Mishka and Sam
the Fireman), its high-quality standards in designing/manufacturing
toys and an international distribution capacity. Simba is also
notably the parent company of several well-known brands in the toy
sector, including: Smoby, Majorette and Corolle.
Xilam signed a Master Toy license agreement under which Simba
will pay royalties to Xilam on recorded sales. Simba undertakes to
produce a complete range of toys (dolls, vehicles, accessories,
etc) for 3-6-year olds, in accordance with a graphic style guide
drawn up by Xilam. Simba will handle sales and marketing, in
particular, during the last quarters of 2022 and 2023, via
advertising campaigns on the main Free TV channels.
Strong value creation potential for Xilam
Xilam is expecting this first merchandising campaign to have a
significant and growing impact on its turnover from 2023 onwards,
along with a simultaneous contribution to the group's
profitability.
The Master Toy licence is the first usual step in a more
comprehensive merchandising campaign. It sends a strong signal to
all other licensing categories (publishing, textile, etc.), which
will benefit from TV advertising campaigns organised for the
toys.
It is too early to give precise details about this new revenue
stream, at least until the first line of toys is launched on the
market. This new B2C expertise is nevertheless a powerful catalyst
given the group's strong creative capacity. Other series with high
merchandising potential will be launched on the market in the near
future.
Marc du Pontavice, Chairman and CEO of Xilam says "We are
particularly pleased to announce this merchandising licence
agreement. It marks a key step in our 360° strategy to position
Xilam and its brands, taking us beyond videos, to provide a more
holistic approach to children's entertainment. This first
resounding success rewards the efforts made in recent years by the
group's teams, particularly those in distribution."
Merchandising: a recurring profitability model
Merchandising is a new B2C revenue model for Xilam,
complementing the B2B segment, within which the group currently
operates through traditional TV channels and digital platforms. It
will significantly increase the recurrent share of turnover,
especially from the catalogue. Based on a royalty model, it
requires no investment from Xilam and will not result in any
additional costs, thus generating immediate cash flow and increased
profitability. In the medium term, this merchandising turnover may
represent a significant share of total turnover.
Ultimately, merchandising is one of the 4 pillars of Xilam's
strategy which is based on organically growing its core-business on
kids & family content range, expanding on adult-focused content
range, capitalizing on strategic high-return non-IP content and
accelerating growth of B2C revenue streams, including
merchandising.
About Xilam A major
player in animation, Xilam is an integrated studio founded in 1999
that creates, produces and distributes original programs in more
than 190 countries for both children and adult audiences. Xilam
content is broadcast on television, and is also available on SVOD
platforms including Netflix, Disney+, Amazon and NBC Universal, and
AVOD streaming platforms including YouTube and Facebook. With its
creativity and capacity for innovation recognized worldwide, and
editorial and commercial expertise at the cutting edge of its
industry, Xilam is positioned as a key player in a fast-growing
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 Oggy
Oggy for a preschool audience, Mr. Magoo and Trico. Xilam’s
expanding and strong catalogue now consists of over 2,700 episodes
and three feature films, among which Academy Award® nominated adult
feature film I Lost My Body. Xilam has a unique expertise in 3D.
the Studio employs more than 500 individuals, including 400
artists, across its studios in Paris, Lyon, Angoulême and Ho Chi
Minh in Vietnam. Xilam is listed on Euronext Paris Compartment B –
Eligible to PEA - SRD long.
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version on businesswire.com: https://www.businesswire.com/news/home/20211020005853/en/
Marc du Pontavice - Chairman and CEO Arnaud Duault - CFO Phone
+33 (0)1 40 18 72 00
Image Sept Agency xilam@image7.fr Karine Allouis (Media
Relations) - Phone +33 (0)1 53 70 74 81 Laurent Poinsot (Investor
Relations) - Phone +33 (0)1 53 70 74 77
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