Media localisation specialist falls short of market expectations
Sheffield-headquartered Zoo Digital Group has warned its FY25 revenues and EBITDA are expected to be below market expectations in a trading update today for the financial year ending 31 March 2025.
The company, which offers cloud-based localisation and media services to the global entertainment industry,
Its Board currently expects full year FY25 revenues will be at least $50.5m/£40m, which is up 24% on the prior year.
The full year revenues will result in a return to EBITDA profit of at least $1m/£800,000 compared to a loss of $13.6m/£10.8m last year.
Zoo Digital says it has implemented targeted cost saving measures, reducing its fixed costs by 20% during the year.
It explains the ongoing restructuring of the cost base to reduce the unit cost of production provides a strong platform to return to cash breakeven.
A spokesman for the firm added: “While the company’s order book has improved in recent months through the addition of several high value projects, these are not included in the company’s current expectations for FY25.
“The timing of revenue recognition for these projects is uncertain as commencement for much of this work is dependent on the supply of original assets from licensors.
“In addition, some projects in the FY25 pipeline relate to titles that customers have either delayed or cancelled.
“The company has secured several new customer engagements which are expected to begin to deliver meaningful incremental revenues in FY26.
“This includes being named a Preferred Fulfilment Vendor (PFV) for Amazon Prime Video, positioning ZOO among a select group of vendors that production companies may use to digitally package and distribute content on Amazon Prime Video.”
Zoo Digital also notes it is seeing a marked increase in customer discussions around new projects to a level greater than at any time over the past two years.
Based on current visibility, it expects dubbing revenues for FY26 will be lower than in FY25.
However, the business states that with a lower cost base and higher margin revenue mix the overall profitability of its operations is expected to improve significantly year-on-year.
