REG - Zoo Digital Group - Full year trading update

Zoo DigitalAnnouncement

25/04/2022 07:00

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RNS Number : 1313J  Zoo Digital Group PLC  25 April 2022

This Announcement contains inside information for the purposes of Article 7 of
EU Regulation 596/2014 as retained as part of UK law by virtue of the European
Union (Withdrawal) Act 2018 as amended. Upon the publication of this
Announcement, this inside information is now considered to be in the public
domain.

 

25 April 2022

 

ZOO DIGITAL GROUP PLC

("ZOO", the "Group" or the "Company")

 

Full year trading update

 

Upgrade to FY22 revenue and EBITDA; positioned for strong, sustainable organic
growth

 

ZOO Digital Group plc (AIM: ZOO), the leading provider of end-to-end,
cloud-based localisation and media services to the global entertainment
industry, today provides a pre-close trading update for the financial year
ending 31 March 2022 in advance of full year results expected to be announced
on 6 July 2022.

 

Following the announcement on 22 March 2022, where revenue was forecast to be
at least $65 million and EBITDA at least $6.5 million, the Group today further
upgrades its expectations for the year ended 31 March 2022. Revenue for the
full year is now expected to be approximately $70 million (FY21: $39.5
million), a significant acceleration of organic growth over the prior year of
78%. EBITDA (adjusted for share-based payments) is also expected to be
materially ahead of the previously upgraded expectations at approximately $8
million, an increase of approximately 78% on the prior year (FY21: $4.5
million). Net cash on 31 March 2022 was $5.4 million (FY21: $2.9 million),
which reflects strong cash generation despite significant investment to expand
capability and underpin future revenue growth.

 

The Company intends to provide a further update on its outlook for the FY23
financial year with its full year results on 6 July 2022.

 

Stuart Green, Chief Executive Officer of ZOO Digital, said:

 

"It has been an outstanding year for ZOO with growth materially above
expectations, with our last quarter being a record period. We continue to
benefit from streaming launches in new territories around the world, while
also increasing market share through new service offerings and seeing strong
demand from customers across all of ZOO's operating segments. The board has
invested heavily in capacity to support further growth and the Group has
expanded its international footprint in regions that are strategically aligned
with our major customers. With a strong pipeline of projects in place, we are
confident of delivering further sustainable growth in the year ahead."

 

 

For further information:

 

 ZOO Digital Group plc            +44 (0)114 241 3700
 Stuart Green
 Phillip Blundell

 Stifel                           +44 (0)20 7710 7600
 Fred Walsh / Tom Marsh

 Instinctif Partners              +44 (0)20 7457 2020
 Matthew Smallwood / Joe Quinlan  zoo@instinctif.com (mailto:zoo@instinctif.com)

 

 

About ZOO Digital Group plc:

 

ZOO Digital supports major Hollywood studios and streaming services to
globalise their content and reach audiences everywhere, by providing
world-leading, technology-enabled localisation and media services.

 

Founded in 2001, ZOO Digital operates from hubs in Los Angeles, London, Dubai,
Turkey, South Korea, India and Denmark with a development and production
centre in Sheffield, UK. The company is targeting $100m sales in the medium
term.

 

The Group provides media services through its platforms that include: ZOOsubs,
ZOOdubs, ZOOstudio. Its full-service proposition delivers the end-to-end
services required to prepare both original and catalogue content for digital
distribution; these services include dubbing, subtitling & captioning,
metadata creation & localisation, artwork localisation and media
processing. Alongside this offering, ZOO also provides its customers with
management platforms and strategic solutions to support their own internal
globalisation operations.

 

ZOO is a go-to service partner for media businesses looking to globalise their
content across different territories, languages and distribution platforms.
Using its innovative technology-enabled approach, ZOO helps its customers to
reduce time to market, lower costs and deliver high quality products to their
global audiences. The business has frameworks in place with all major
Hollywood studios and streaming services. Its customers include Disney,
NBCUniversal, HBO and ViacomCBS.

 

ZOO's competitive advantage arises from three interlinking factors - the
leading role it has played in the digital transformation of its sector; the
world class proprietary platforms that it develops to enable this
transformation; and the global supply chain of thousands of freelancers,
working collaboratively in ZOO's platforms, which delivers services that scale
easily to meet demand. These factors combine to make ZOO uniquely geared to
capitalise on new market opportunities in a fast-paced and constantly evolving
industry.

 

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