ZOO Digital Group plc (LON:ZOO), the provider of localisation and digital distribution services for the global entertainment industry, today announces its unaudited financial results for the six months ended 30 September 2017.
· Launched a new cloud-powered dubbing service to critical acclaim by international trade organisations
· Successfully completed and delivered first dubbing projects for a global entertainment client
· Launched a cloud-powered scripting service, a cornerstone capability enabling ZOO to process combined subtitling and dubbing assignments efficiently
· Client concentration further reduced, with largest client contributing 28% of sales (H1 2016: 47%)
· Added three new affiliates, expanding the network of partners to 10 across emerging markets
· Board strengthened by the appointment of Mickey Kalifa as Non-Executive Director – a finance professional with experience of the technology, media and gaming sectors
· Revenues increased by 63% to $12.7m (H1 2016: $7.8m)
· Adjusted EBITDA1 up by 34% to $1.3m (H1 2016: $1.0m), with significant investments made during the period in new staff and higher costs of initial dubbing projects
· Fundraise generated £2.6m cash and capitalised a further £1.1m of debt
· Net debt reduced to $3.9m (H1 2016 $6.2m)
Stuart Green, CEO of ZOO Digital, commented, “I am pleased to be able to report on a strong performance for the Group, with significant progress made in all facets of the business. The first half of the year has seen further operational improvements, highlighted by strong demand and very positive critical recognition, a strengthening of the Group’s balance sheet and adding expertise to the Board of Directors. This is reflected in a much-improved financial performance, with the foundations laid for enhanced performance in future periods, and the confidence of management to invest for growth.
“Trading in the second half of the year has begun well, with revenue expectations ahead of market guidance, balanced against our increasing investment to satisfy increasing demand and support future growth. The Board remains confident of meeting its full year management expectations for adjusted EBITDA and is excited for the Group’s future.”
1Adjusted for share-based payments.