ZOO Digital Group plc (LON:ZOO), the provider of localisation and digital distribution services for the global entertainment industry, is pleased to provide an update on trading for the year ended 31 March 2018.
As previously indicated, the growth experienced in the business continued through the second half of the financial year. The Group expects to report full year revenue of at least $28.0m (31 March 2017: $16.5m), leading to Adjusted EBITDA* of at least $2.3m (31 March 2017: $1.8m). Gross cash as at 31 March was $2.4m (30 September 2017: $0.7m), with no other material borrowings other than its long-term convertible loan notes. Localisation services (being subtitling and dubbing) have continued to be the main driver of this growth and will represent in the region of 74% of overall revenue (31 March 2017: 52%).
The demand for localisation services continues to grow and, in order to satisfy this demand, ZOO has been steadily increasing the number of quality voice actors and dubbing professionals with whom it engages. Pleasingly, the Group’s growing reputation in the market is helping to engage with these professionals, enabling services to be fulfilled across a growing number of languages.
The Group was also encouraged by the level of industry feedback and acclaim that ZOOdubs and the associated dubbing service achieved at the NAB show in Las Vegas, held between 7 – 12 April 2018. The level of interaction with senior individuals from major players within the industry and the resulting enquiries underlines the confidence that the Board has in the Group’s long-term opportunity, particularly in respect of its localisation services.
Given the importance of localisation services, the Group intends to re-classify the costs of the internal staff responsible for fulfilling client projects as a cost of sale rather than as a central overhead as previously, for the purpose of reporting its final results and on an ongoing basis. The Board believes that this will be more representative of the Group’s trading and will have no effect on the reporting of its overall profitability.
ZOO expects to publish its full year results in the week commencing 2 July 2018.
The Company notes that the process for appointing a new Chief Finance Officer is ongoing.
Stuart Green, Chief Executive of ZOO Digital Group Plc, commented: “We are pleased to confirm guidance for the full year results. We continue to see momentum in the business, driven by our localisation services, and remain optimistic for the future.”
