ZOO Digital confirms revenues set to ‘fall short of expectations’

ZOO Digital Group has announced that revenues are expected to be “10% lower than full year expectations” for the twelve months ending 31 March.

The Sheffield-based firm, which provides localisation and digital distribution services for the entertainment industry, revealed that its second half of the year was affected by the loss of a single, material localisation project that was scheduled to begin and be completed during the period.

In addition, ZOO Digital also noted that revenues associated with processing legacy DVD and Blu-ray titles in the second half will be significantly lower than anticipated as the overall market decline in this area has accelerated at a rapid rate.

As a result, the company expects revenues for the second half to be comparable to those in the first half, and therefore to be approximately 10% below full year expectations.

ZOO Digital also expects that adjusted EBITDA for the full year will be “significantly below expectations.”

Stuart Green, chief executive of ZOO, said: “Whilst we are disappointed to fall short of expectations, albeit primarily due to one off occurrences, we are encouraged that we have seen year on year growth across our key service lines being dubbing and subtitling, as well as having successfully delivered projects for a number of new clients.

“We remain confident that the Company’s strategy is correct and will enable us to capitalise on the long-term opportunity. We are now enjoying a growth in orders from our largest clients and expect to add significant new accounts during the remainder of the second half.

“With several major media companies recently announcing their intention to launch OTT services, there is no doubt that the market will continue to expand significantly and with it the growing demand for the premium services offered by ZOO. Our excitement for the future remains undiminished.”

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