ZOO Digital Group plc, the provider of cloud-based localisation and digital distribution services for the global entertainment industry, today announces its audited financial results for the year ended 31 March 2019.
HIGHLIGHTS
Key Financials
- Revenue edged up to $28.8 million (2018: $28.5 million)
- Adjusted EBITDA* of $0.4 million (2018: $2.4 million) – EBITDA* margin of 1.4% (2018: 8.4%)
- Operating loss of $1.3 million (2018: profit $0.6 million)
- Reported Profit Before Tax of $1.3 million (2018: loss $5.0 million)
- Cash at year end $1.8 million with no debt other than convertible loan notes (2018: $2.4 million, H1: $0.9 million)
Operational Highlights
- Localisation revenues grew by 4% despite disruption in the market due to changes in the supply chain of a major client
- Continued adoption of cloud-based dubbing service, with number of major studio customers doubling in year
- Confirmed as a Netflix Preferred Fulfilment Partner
- Continued investment in R&D including launch of ZOOstudio localisation ecosystem – an advanced project and capacity management platform that has been well received by clients and the industry
- Continued expansion of capacity including launch of the ZOO-Enabled Dubbing Studio programme with 70 facilities enrolled across 22 key countries together with significant increase in the freelancer network
Outlook
- Ongoing supportive market dynamics, with the increase in digital entertainment content and expansion of distribution channels driving a growing demand for high quality and scalable content localisation and digital packaging services
- Gillian Wilmot appointed to the Board as Chairman with effect from 1 July 2019, replacing Roger Jeynes who will step down after serving a nine-year tenure
* adjusted for share-based payments
Copies of the Report and Accounts for the year ended 31 March 2019 are available to view on the Group’s website www.zoodigital.com.
Stuart Green, CEO of ZOO Digital, commented,
“We have worked hard over the course of the year to enhance our offering, build up our network and differentiate ourselves further from the competition. ZOO now has the technology, the people and the local expertise to enable our clients to deliver content across multiple territories and in multiple languages simultaneously and efficiently. To be chosen as a primary vendor of localisation services for large media companies requires us to demonstrate significant global capacity, and in this regard, we have made excellent progress that puts us in good stead as we continue to grow.
Trading in the new year has begun well. Whilst the significant decline in legacy DVD and Blu-ray formats in our digital packaging segment has continued, now leading us to not forecast any significant income from this business line in the future, this has been offset by strong growth related to Over-the-Top (OTT) delivery. We expect ZOO to be confirmed as a preferred vendor to a greater number of clients and lines of business during the course of the year ahead. Our caution around timing is reflective of the dynamic nature of the OTT marketplace and recent experience.
The end market into which we are selling our cloud-powered services continues growing and the traction that we are gaining with each of our services gives us great confidence that the business is well placed to meet opportunities and growth in the years to come.”
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