Corrected: UK's Zoo Digital H1 revenue rises on higher demand for localisation services
CORRECTED-UK's Zoo Digital H1 revenue rises on higher demand for localisation services Corrects adjusted EBITDA, operating profit and pretax profit figures in Key Details after company issued correction, and to say adjusted EBITDA rose 79.2% in Overview
Overview
UK localisation services firm's H1 revenue grew 5.5% yr/yr, driven by higher localisation demand
Adjusted EBITDA rose 79.2% yr/yr as profitability improved on cost cuts and higher volumes
Company says H1 growth partly due to one-off catalogue projects unlikely to repeat in H2
Outlook
Zoo Digital expects FY27 revenue growth and profit progression in line with market expectations
Company does not expect certain one-off H1 projects to repeat in H2
Company says revenue visibility remains limited, focus remains on execution and cash generation
Result Drivers
LOCALISATION GROWTH - Higher volumes of localisation services, especially for older catalogue content licensed into new territories, drove revenue increase
COST STRUCTURE - Improved profitability attributed to a more efficient operating model and lower overheads
FASTER DELIVERY SERVICES - Increased uptake of premium and accelerated delivery services contributed to revenue mix shift
Company press release: ID:nRSJ4352Ca
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
H1 Revenue |
| $23.6 mln |
|
H1 Adjusted EBITDA |
| $3.5 mln |
|
H1 Operating Profit |
| $1.4 mln |
|
H1 Pretax Profit |
| $1.2 mln |
|
Analyst Coverage
The one available analyst rating on the shares is "buy"
The average consensus recommendation for the software peer group is "buy"
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(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.)