Robust FY18 results
Positive dynamics expected to continue
ZOO Digital released robust FY2018 results today delivering $28.6m of revenue in FY2018, 2% ahead of our forecast, and representing a 73% Y/Y increase. FY2018 saw the Group solidify its reputation as a significant player in the localisation market with the launch of innovative technologies such as ZOOdubs. The outlook for the market and the group remains buoyant with the board confident the Group is ‘just entering an exciting period’. We reflect that in our newly published FY2020E forecasts.
▪ The Group delivered an Adj. EBITDA of $2.4m slightly ahead of our $2.3m forecast. Localisation services encompassing both subtitling and dubbing grew by 148% Y/Y to $21.4m. Fully Adjusted PBT was $0.5m in line with our estimates, but the reported EBIT loss of $5m reflects the $4.6m negative fair value embedded derivative adjustment linked to its convertible loan. The adjustment is a non-cash accounting adjustment.
▪ ZOO delivered significant enhancements to its platform in FY2018 including the launch of ZOOdubs and ZOOscripts. Its increased service offering propels the Group forward to becoming a ‘one stop shop’ service provider for the media localisation and digital packaging services in all languages.