Revenue dip but rise in gross profit for listed software firm
ZOO Digital Group has seen its revenues drop by 4% to $14.2m / £11m (H1 FY19: $14.9m / £11.5m).
The Sheffield-based company, which provides cloud-based localisation and digital distribution services for the entertainment industry, today released its unaudited financial results for the six months ended 30 September 2019.
It attributed the fall in revenue to an anticipated 75% drop in legacy DVD and Blu-ray services, which now make up 3% of overall Group revenue.
Excluding DVD/Blu-ray services, revenues for the business were up 7% to $13.8m / £10.7m (H1 FY19: $12.9m / £10m) with strong demand for digital packaging and subtitling.
Gross profit was up to $5.8m / £4.5m (H1 FY19: $4.9m / £3.8m) explained by a favourable sales mix. And the business reported an operating profit of $0.4m / £309,000 (H1 FY19: $0.3m loss / £231,000 loss).
Stuart Green, CEO of ZOO Digital, said: “We are pleased with the progress we have made during the period, having met all operational targets in respect of our strategic priorities.
“We are now a primary vendor of localisation and digital packaging services for a major new Over-The-Top (OTT) platform and have achieved the first customer deployment of ZOOstudio, our localisation management platform.
“The OTT consumer video market is about to undergo a step change due to the forthcoming launches of several Direct-to-Consumer services from major media companies.
“These provide an exciting growth opportunity in media localisation and digital packaging given the increased demand for these services to enable international distribution.
“We believe ZOO is well placed to capitalise on this opportunity given the benefits and competitive advantages of our cloud-powered services.”
