UK's Zinc Media H1 revenue falls 42% on delayed commissions
UK's Zinc Media H1 revenue falls 42% on delayed commissions
Overview
UK television producer's H1 revenue fell 42% yr/yr due to delayed commissions
Gross margin rose to 44% from 37% on higher-margin IP revenues and cost control
Adjusted EBITDA swung to a £0.9 mln loss from a profit a year earlier
Outlook
Company expects FY26 revenue of £38m and EBITDA of £1.4m
£7m of FY26 production delayed to FY27 due to Iran conflict
Zinc Media sees strong FY27 pipeline with £9m contracted and further £39m in opportunities
Result Drivers
DELAYED COMMISSIONS - Co said revenue was impacted by delayed productions, especially in the Middle East due to the Iran conflict
HIGH-MARGIN IP REVENUES - Gross margin rose as investments in new genres enabled delivery of high-margin IP revenues
COST SAVINGS - Permanent cost savings from restructuring and the 'One Zinc' initiative helped reduce underlying cost base
Company press release: ID:nRSW8711Va
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
H1 Revenue |
| GBP 13.20 mln |
|
H1 Net Loss |
| GBP 3.33 mln |
|
H1 Adjusted EBITDA |
| -GBP 951,000 |
|
H1 Gross Profit |
| GBP 5.80 mln |
|
H1 Operating Income |
| -GBP 3.15 mln |
|
H1 Pretax Loss |
| GBP 3.39 mln |
|
Analyst Coverage
The one available analyst rating on the shares is "buy"
The average consensus recommendation for the entertainment production peer group is "buy"
Wall Street's median 12-month price target for Zinc Media Group PLC is GBp150.00, about 165.5% above its September 22 closing price of GBp56.50
The stock recently traded at 8 times the next 12-month earnings vs. a P/E of 7 three months ago
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For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.
(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)