ZOO Digital Group plc (LON:ZOO), the provider of cloud-based localisation and digital distribution services for the global entertainment industry, will be holding its Annual General Meeting (AGM) at 4.00pm today. At the meeting, Roger Jeynes, Chairman, will make the following statement:
“As highlighted in our Annual Report, the Group has made significant progress in its strategy to become the leading provider of localisation and associated services to the global entertainment industry. This success has continued in the first half of the new financial year with our expanded service offering being well received by the market. The overall market for localisation services has also continued to grow as global entertainment companies execute their plans for digital distribution and increase investment in original programming.
“We expect to report revenues in the first half of the financial year at least 17% higher than the same period last year, and we are confident in the prospects for a strong second half. Accordingly, we anticipate overall full year performance will be in line with expectations.
“In particular, the success of our Cloud-based dubbing service is pleasing and, at approximately three times above our expectation for this stage of the financial year, is the main contributor to growth in the Group’s revenues in the first half. Disruption has been experienced by us and other market participants in the subtitling supply chain during the transition of a major OTT operator’s partner programmes, but this is easing, and we are seeing normal operations increasingly restored.
“Our first half results will also set out that we have continued to invest, in line with our expectations and in a disciplined fashion, in operational capabilities to ensure that we remain at the forefront of our industry. This has included expansion of our in-house project coordination team and our global network of freelancers, and we expect to continue this in line with increasing demand.
“We have continued to develop affiliate partnerships with in-territory service and facility operators, providing us with increased geographical presence without the high costs of establishing local offices. For example, we have in this fashion established a facility in Dubai, a first in the area for local Arabic cloud dubbing, which will operate as an important in-territory ingest point for Arabic language film and television. This comes as many of our customers seek to expand their media offerings in and from this part of the world.
“I am confident that we have put in place the technology and operating capability to continue to execute on our strategy and meet full year expectations.”
Presentation slides that will accompany an investor update following the AGM will be available on the Company’s website later today.
The Company intends to announce its interim financial results for the six months to 30 September 2018 on 6th November 2018.
The Company will hold two Capital Market days for analysts and investment managers on the 10th and 11th October 2018 at which no price-sensitive information will be disclosed.
