Entertainment specialist accelerates growth
ZOO Digital Group the leading provider of end-to-end cloud-based localisation and media services to the global entertainment industry expects its revenue for the full year to be $39.5 million (FY20: $29.8 million).
The figure follows an acceleration of growth over the last 12 months as a result of the pandemic when production of new titles was stalled and consumer take-up of on-demand streaming services increased.
In its latest trading update the Sheffield-based firm expects its EBITDA (adjusted for share-based payments) to more than double from the prior year to approximately $4.5 million (FY20: $2.1 million).
Looking ahead the rise in on-demand services, with several direct-to-consumer streaming video services are now available from leading US media organisations, is expected to create a positive industry dynamic and driver for ZOO, as all services expected to be offered internationally in local languages in due course.
As a result of the significant opportunities that lie ahead, the firm says it has accelerated its investment in its technology, infrastructure and service capacity, and has already taken steps to grow its international footprint. To support this, the company completed a successful, oversubscribed fundraising of £7.4 million ($10.3 million) on 31 March with existing and new institutional and other investors.
The update also reported that trading in the first weeks of the 2022 financial year had been strong with a significant pipeline of customer projects committed for Q1.
Stuart Green, chief executive officer at ZOO Digital said: “We have delivered a strong second half performance as streaming services seek to grow their customer bases internationally and on a global scale.
“We have invested ahead of events and are building out our international footprint to service globalising customers.
“Looking ahead, we expect new title production to resume and back catalogue migration to continue. Q1 of our new financial year has begun well.”
Gillian Wilmot, chairman of ZOO Digital added: “These trading results and the success of our over-subscribed £7.4m fundraise reinforce both our strategy and the capability of our executive team to deliver.”
