ZOO Digital Group plc, the provider of cloud-based localisation and digital distribution services for the global entertainment industry, today announces its unaudited financial results for the six months ended 30 September 2018.
- Revenues increased by 17% to $14.9m (H1 FY18: $12.7m)
- Gross profit of $4.9m (H1 FY18: $4.8m) driven by sales mix shift to localisation
- Adjusted EBITDA1 of $0.5m (H1 FY18: $1.3m) reflecting investment across the business to support future growth
- Cash balance of $0.9m (H1 FY18: $0.7m)
- Important investments made across the business to drive additional growth
o Significant technological enhancements and new features to ZOO platforms
o Expansion of freelancer network to 5,400 (H1 FY18: 2,700)
o Upgrades to Dubbing service in line with technology roadmap
- Reconfiguration of its supply chain by major OTT operator now completed
o New engagement favourable to ZOO’s differentiated cloud-based multi-language service
o Recent subtitle orders higher than previous levels
- Upscaling of management team
o Appointment of Phillip Blundell as Chief Financial Officer
o Expanded international business development initiatives under ex-Deluxe Executive
- Second half of the financial year expected to be significantly cash generative
- Full year performance in line with expectations – order book stronger now than start of H1
- New programmes will be favourable for ZOO in terms of increasing market share as well as the size and visibility of the order book
Stuart Green, CEO of ZOO Digital, commented, “I am pleased to report on a period of continued growth alongside strategic investment to support business expansion in the second half and beyond. We have made significant enhancements to our cloud platforms to support new services, operational efficiencies and scalability, further building on the Group’s competitive advantages and raising the barriers to entry.
“Trading in the second half of the year has begun positively, with the flow of subtitling orders returning to levels higher than prior to the disruption of the first half, and dubbing orders continuing to grow. We are confident in the prospects for a strong and cash generative second half and anticipate overall full year performance will be in line with market expectations.
“All the indicators are that the global media localisation market is continuing to grow strongly, fuelled by demand for a greater volume of original content, delivered through an ever-expanding number of digital channels in a growing number of languages. The expansion of our localisation service into dubbing has significantly increased the breadth of our offering, the size of the addressable market and enhanced our competitive positioning. We are just at the very start of our journey and look to the long-term future of the Company with great excitement.”
1 Adjusted for share-based payments