Zoo Digital Group PLC Year End Trading Update and Notice of Results (4158W)
17 Aprile 2019 - 8:00AM
UK Regulatory
TIDMZOO
RNS Number : 4158W
Zoo Digital Group PLC
17 April 2019
17 April 2019
ZOO DIGITAL GROUP PLC
("ZOO", the "Group" or the "Company")
Year End Trading Update and Notice of Results
ZOO Digital Group plc, a world-leading provider of cloud-based
localisation and digital distribution services to the global
entertainment industry, today issues the following trading update
in respect of the year ended 31 March 2019.
Group revenue for the year is expected to be in line with
expectations at $29.0m (compared to $28.5m last year). Total
localisation revenues grew 5% to $22.6m against a strong
comparative figure that included a one-off project with a value of
$2.5m for a major studio. Within this, subtitling revenues have
recovered strongly and cloud dubbing service revenues were up 17%
for the year during which ZOO was engaged on initial projects for
eight major TV and film production studios (FY18: four).
The Group has continued to invest in accordance with its plans
and the Company is well positioned to respond to a rapidly changing
entertainment industry and the boom in demand for TV and movie
content via streaming services. As previously explained, this
investment, together with the faster than expected acceleration in
the decline in legacy packaged media revenue, which does not form
part of ZOO's long-term strategy, has impacted on profitability
such that adjusted EBITDA in the second half will be around
break-even (H1: $0.5m).
The benefits of this investment are apparent insofar as the
ZOOstudio localisation platform, launched during the year, has
received a 'Product of the Year' at the prestigious NAB Show
awards. The Group is in discussions with significant industry
players with regard to their adopting this platform.
The Group has been cash generative in the second half by
focussing on strict working capital management, despite lower than
anticipated profitability, such that the net cash balance of $1.8m
at the year-end was double the amount at the half year stage with
no debt other than the convertible loan notes. The business is
therefore well-placed to grow organically during the forthcoming
financial year.
The Company notes that its search for a new Chair is progressing
well and expects to announce an appointment on or before the
preliminary results which are scheduled to be published in the week
commencing the 24 June 2019.
Stuart Green, Chief Executive commented,
"The financial outturn for 2019 is frustrating, having been
impacted by market shifts and client disruption, but we are pleased
that the business has grown and been cash generative. We have been
able to meet our investment and operational objectives which leave
us well placed in markets globally where the requirement for
premium media localisation clearly continues to increase.
"We believe demand for our cloud-based services is building,
client adoption is accelerating and our recently launched ZOOstudio
platform has been well received in the market. We are confident for
the future."
The information communicated in this announcement includes
inside information for the purposes of Article 7 Regulation
596/2014.
For further enquiries please contact:
ZOO Digital Group plc 0114 241 3700
Stuart Green - Chief Executive Officer
Phillip Blundell - Chief Finance Officer
finnCap 020 7220 0500
Henrik Persson / Kate Bannatyne (corporate
finance)
Camille Gochez / Andrew Burdis (corporate broking)
Alma PR 020 3405 0205
Josh Royston / Hilary Buchanan / Helena Bogle
About ZOO Digital Group plc:
ZOO Digital is a provider of services allowing TV and movie
content to be subtitled and dubbed in any language and prepared for
sale with all major online retailers. ZOO's clients are some of the
best-known brands in the world including major Hollywood studios,
global broadcasters and independent distributors.
ZOO's point of difference in the marketplace is its development
and use of innovative cloud technology. This ensures that content
is localised in any language and delivered to all the major online
platforms such as Amazon, iTunes, Google and Hulu with reduced time
to market, higher quality and lower costs. ZOO's agile, cloud-based
business model enables clients to respond to market trends, scale
easily with business growth and capitalise on new routes to market
in the fast moving and evolving digital industry.
ZOO operates from the entertainment hubs of Los Angeles and
London with a development and production centre in Sheffield. Its
full-service proposition includes digital distribution, subtitling
& captioning, metadata creation & localisation, dubbing,
artwork localisation, workflow and asset management.
www.zoodigital.com
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END
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