Zoo digital reports 63% rise in revenues and reduces client concentration
Zoo Digital, the Sheffield-based subtitling specialist, has reported a 63% rise in half-year revenues to $12.7m; up from $7.8m in the previous year.
The company, which provides foreign language sub-titling, captioning and dubbing in all languages and distribution formats across the world, also fundraised £2.6m in cash during the period and capitalised £1.1m debt; reducing its debts from $6.2m to $3.9m.
Its adjusted EBITDA for the period to 30 September stood at 34% to $1.3m (H1 2016: $1m). The firm said it had made significant investments in new staff and higher costs of initial dubbing projects.
Another focus for the firm was to reduce client concentration – the largest client accounted for 28% of its work in this timeframe, down from 47% for the same period last year. Zoo provides services for six major Hollywood studios, global broadcasters and major online retailers
Stuart Green, CEO of ZOO Digital, said: “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.”
Zoo also launched a new cloud-powered dubbing service to critical acclaim by international trade organisations and successfully completed and delivered first dubbing projects for a global entertainment client.
It launched a cloud-powered scripting service, a capability enabling Zoo to process combined subtitling and dubbing assignments efficiently
The firm also added three new affiliates, expanding the network of partners to ten across emerging markets. Mickey Kalifa was also appointed as non-executive director to the Zoo Digital Board. He is a finance professional with experience of the technology, media and gaming sectors.
