Pipeline recovery bodes well for future of entertainment industry group
Zoo Digital Group, which offers cloud-based localisation and media services to the global entertainment industry, says it has seen a strong recovery in its pipeline over the first half of FY25.
The Sheffield-headquartered business will hold its Annual General Meeting today – 26 September.
Gillian Wilmot, chairman, said Zoo expects to deliver sales in the period of at least $27m/£20.2m, equating to a 28% increase over the equivalent prior year period and 42% up on the previous half. She said the Board expects EBITDA profit in the first half.
Wilmot added: “The Board continues to be confident that the changes arising from the realignment of ZOO’s major customers will, in due course, be favourable for the group.
“The company continues to manage its cash position carefully while protecting production capability and capacity to satisfy the demand of its customers. As a result, the unaudited cash balance as at 30 September 2024 is expected to exceed $2m/£1.5m.
“Visibility extends only to January 2025, as is normally the case for the Zoo business. However, the Board expects further profitable progress that will put us on track to meet market guidance for the full year ending 31 March 2025.”
She noted that the streaming industry continues its transition following strategic realignments and the Hollywood writers’ strikes of 2023.
She said recent months have witnessed the early stages of recovery as major US media organisations have enacted their plans to adjust for a future in which traditional linear television plays a diminishing role.
Wilmot said many productions that resumed following the strikes have since been completed and distributed to global audiences.
But she warned changes made in the mix of content types acquired and capital allocation policies mean it will take longer to yield results and restore levels of industry output to those seen in 2022 – particularly in Hollywood.
