Business
Year End Trading Update and Notice of Results
Year End Trading Update and Notice of Results.
About this update from Zoo Digital Group Plc
[{"type":"text","content":"\n \nRNS Number : 4158W Zoo Digital Group PLC 17 April 2019 \n\n17 April 2019\nZOO DIGITAL GROUP PLC\n(\"ZOO\", the \"Group\" or the \"Company\")\n \nYear End Trading Update and Notice of Results\n \nZOO 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.\nGroup 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).\nThe 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). \nThe 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.\nThe 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. \nThe 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 publishe...