ZOO Digital bounces back after “disruption” from major customer
SUBTITLING and digital distribution business ZOO Digital has managed to offset the damage caused following the outside acquisition of a major customer.
The business reported in an update that it was on track for revenues of £7.95m ($11.6m) for the year to 31 March 2016, up from £7.88m the year before.
This comes despite an unnamed ‘major’ customer being acquired. The customer in question contributed 24% of the company’s revenues in the year to March 2015.
However growth from new clients in the period to March 2016 has fully offset this shortfall, says ZOO.
The company expects to report EBITDA of approximately just over £137,000 ($200,000) up from a loss of just under £480,000 the year before.
A convertible loan note of £500,000 provided working capital for the business.
The Sheffield-based company is predicting the biggest market growth will come from online entertainment distributors such as Apple, Netflix, Amazon, Google and Hulu, and it has continued to invest in cloud platforms.
In February 2016 ZOO was approved by Apple to offer iTunes aggregation services for TV series.
During the year, Syed Ahmed joined to focus on international business development, opening up opportunities for customers in the Middle East, South Asia and Asia Pacific, as did Mazin Al-Jumaili who joins as director of Business Development for Europe.
Stuart Green, chief executive of ZOO Digital said: “We are entering our 2017 year with a stronger pipeline, a broader range of services and greater sales capability than ever before. The board is increasingly optimistic about the Company’s potential for growth.”
